In China, fears of financial Iron Curtain as U.S. tensions rise

Reuters/Samuel Shen, Winni Zhou and Kevn Yao

photograph of 100 yuan and $100 bills“A sharp escalation in tensions with the United States has stoked fears in China of a deepening financial war that could result in it being shut out of the global dollar system – a devastating prospect once considered far-fetched but now not impossible.”

USAGOLD note:  It is difficult to guess what might happen in the world of finance if some of the worst-case scenarios floated in this article were to actually occur – including  China attempting to advance the yuan as a real competitor to the dollar.  We have even seen some speculation (not in this article) that it might try to introduce a gold-backed yuan to raise the currency’s credibility in the eyes of international investors.

Repost from 8-13-2020

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