De-dollarization Message Is Mostly Chinese Propaganda

The idea the dollar is doomed is being floated everywhere. It is likely it is rooted in a propaganda campaign flowing from China and that deserves a bit more attention. Considering all this noise about de-dollarization it could be argued this is largely a Chinese operation aimed at raising China's standing and weakening America. When looked at objectively the notion the yuan could rival the dollar lacks truth and merit.

A big part of the problem is that many people believe what they hear without questioning or filtering it. The idea of a psychological operation (PSYOP) is to persuade, change and influence audiences. Such operations convey selected information and indicators to audiences to influence their emotions, motives, and objective reasoning, and ultimately the behavior of governments, organizations, groups, and individuals. This is a basic part of "brainwashing."

In short, full-fledged propaganda campaigns are not an accident. If told something enough people begin to believe it. Never forget the Chinese Communist Party (CCP) pays influencers and people writing articles to spread its narrative! It is possible that those adopting the dollars death as fact or a fait accompli may suffer by being scammed into making poor investment decisions based on the idea they should flee the dollar. This is happening in China even as this is being written. In China, some people are converting dollars into yuan. 

The actions to weaponize the dollar certainly reflect poorly on the United States as does our inability to control our spending. As the country given the privilege to have its currency granted the world's reserve currency it would seem America has some responsibility to conduct its affairs in an orderly fashion. Yet, even with all these flaws the dollar remains the cleanest of the dirty paper fiat currencies. It is unbelievable and totally unrealistic to think the weak Chinese yuan which is used so little outside China's domestic market will gain stature.

The notion the dollar is rapidly moving toward the dustbin of worthless currencies is fueled by China is a subject taken on by a fella in a video that raises some good points. Around 15:20 minutes in https://www.youtube.com/watch?v=EWcJVRznD5E he also points out that people trade metals on several exchanges across the world and how important they are is linked to both volume and liquidity. This coupled with the questionable numbers and China's history of rampant corruption tends to support the validity of the claim China is a self-promoter that can't be trusted. 

The Chinese Yuan Is A Very Small Player

Economies run on trust. China may have the world's second-largest economy but there is a reason only around 2.6 percent of world trade is being conducted in the Chinese yuan. That is because China can't be trusted. Those countries lured into China's web through promises of win-win situations often come to regret it. Its history of stealing trade secrets, exploiting relationships, and breaking promises make China a poor business partner.

While this subject of China being a country of poor character has been covered several times here at AdvancingTime, this is a little different spin on it. Still, the key points continue to be the same. A key issue here is that we should never underestimate the desire and ability of the CCP to control and shape a narrative to suit its purpose. The author of this video lived in China for years and has a perspective most of us lack.

China has been moving away from its dependence on America but it will be more difficult than people imagine. China has huge problems that make this planned decoupling a risky gambit. This move has started and it is unlikely to change. China is not springing out of its lockdown but is staying afloat by flooding its markets with cash. In short, it could be argued that China has enjoyed a growth bubble similar to what Japan went through during the 1980s and that it is now over.

To my delight, he also points out that China's so-called President, Xi Jinping is not elected by the people but is more of a Dictator if judged by the standards most of us have been taught. Through an epic power grab, he has turned the position into one he will most likely hold for the rest of his life. The BBC reports that as China's leader, he has overhauled the Communist Party placing himself at the core and nobody else has even a remote chance of challenging him. He is elected by a rubber-stamp session of nearly 3,000 delegates rather than the Chinese people.

When it comes to China keeping things in perspective is very difficult for many Americans. This is even before considering the intentional lies being thrown into the mix by its government. The actions of those with an agenda tend to overwhelm the unaware. China's repressive control of freedom should not be overlooked but rather put under a spotlight so the trend does not extend far across its borders. This is why it is so important we question all the messages China spews forth and the motivation behind them. 

 

Footnote: Brent Johnson of Santiago Capital is credited with coining the term the "Dollar Milkshake Theory." It explains how our debt-based monetary system can cause the US Dollar to rise despite the increasing liquidity injections around the world. Whether this was a "grand master plan" or a situation that just developed over time, it is something that may bode well for the dollar. More on his views in the following article. https://brucewilds.blogspot.com/2023/01/a-country-can't-save-both-its-currency.html

 

(Republishing of this article welcomed with reference to Bruce Wilds/AdvancingTime Blog)