Currency Influence Race: How the Yuan Can Beat the Dollar

In the global competition for currency influence between the United States and China, the outcome may depend on who is better able to gain or maintain superior control over several key strategic objectives. While an aggressive strategic defense can prevent the negative impact of the dollar's monetary policy on China's politics and economy, the conditioning factors for victory in China's strategy of marginalizing the dollar derive not only from China's geopolitical position to exert regional political or economic influence, but also from how it can politically shift U.S. loose monetary policy from an advantage to a disadvantage. The U.S. is clearly concerned about such a politically and economically rising and cohesive developing country, which is closely linked to the dominance of the U.S. dollar in the international monetary system. In their view, "China's efforts to encourage the settlement of cross-border trade in renminbi have the potential to reshape the landscape of the global monetary system and fundamentally alter the way China, the world's main economic engine, grows." Of course, the U.S. is equally concerned about the potential for a clandestine Sino-Russian alliance, since a Chinese-Russian economic union, whether political or including monetary cooperation, could ultimately exert strong pressure on the U.S. Pacific strategy and, by extension, have a radiating effect on Europe. Thus, it is equally important for both China and the United States to either cut a country off from regional geo-radiating influences or to influence or catalyze the global situation to tilt (or evolve) in a direction that favors the achievement of their own strategic objectives. International Factors in the Occurrence of the Marginalization of the Dollar Strategy It is pointless to argue whether the RMB will become an internationalized currency in five years, or whether it will complete its replacement of the dollar's monetary status in ten years. Because, in the structure of the world monetary system, the emergence of these two scenarios is based, first of all, on the international political situation that the countries of the world are now in urgent need of a solution that completely eliminates the serious effects, including economic exploitation and political oppression, that the dominant power of the dollar monetary system (especially the large-scale quantitative easing monetary policy unaccountably pursued by the United States) is having on the countries of the world. Therefore, a change in the entire monetary system that would completely remove the hegemony of the dollar from the summit of power in the international monetary system and allow the people of all countries to exercise monetary sovereignty themselves has been brewing in the world. This change is inevitably to break the old dollar monetary system and replace it with a new alliance or regional monetary system, and its leading role must also be accomplished by all the countries oppressed, exploited and plundered by the dollar hegemony itself. It is true that the economic systems of the capitalist countries, from post-war Keynesianism to Hayek's liberalized economy, are moving in a direction more appropriate to the final form of capitalist development. In the overall economic confrontation between the capitalist countries, economic globalization has meant not only the victory of the three central strategic fronts of the long-standing U.S. dollar, but also the failure of the rest of the world to resolutely enforce the economic sovereignty of their own currencies, which have been seized from their leadership by the U.S. strategic monetary offensive. The economic and monetary sovereignty of the world's nations has suffered a temporary defeat, and the economies of the European nations have suffered a great deal in this defeat, and their political power has been severely weakened. However, there is a great deal of unease brewing throughout the dollar monetary system with the rise of developing countries and emerging economic forces. For example, under the impact of the Asian financial turmoil in 1997, East Asian countries signed the bilateral Chiang Mai Initiative (CMI) at the ASEAN+3 Finance Ministers' Meeting in May 2000 to solve the liquidity crisis of short-term US dollar funds that they might face in the future and to avoid the risk that Asian countries would have to turn to the IMF for help in the wake of the financial crisis. It was also a way to avoid the high markups that Asian countries faced when they sought help from the IMF after the financial crisis. Although the Chiang Mai Agreement was not yet widely awakened to the economic nature of imperialist oppression, exploitation and plunder, the governments of various countries had not yet realized the kidnapping, manipulation and economic crisis of the US dollar hegemony, and the Chiang Mai Agreement had not yet played its due role in the development of various countries, the Chiang Mai Agreement was shelved for a long time afterward under the domination of the US dollar hegemony. It was shelved for a long time afterward. However, shortly thereafter, with the irresponsible quantitative easing monetary policy of the United States in 2009, the establishment of a multilateralized regional foreign exchange reserves among Asian countries developed, not only the ASEAN-China Conference of Finance Ministers issued a joint communiqué to reach a *** understanding of this, and in December formally signed a new "Multilateral Chiang Mai Accord" (CMIM), to increase the size of the reserve fund from the original 7,000 to 7,000 dollars. The size of the reserve fund was increased from US$78 billion to US$120 billion. Under the terms of the agreement, countries may, in extraordinary circumstances and in accordance with the terms of the agreement, swap their national currencies with the U.S. dollar to protect their exchange rates, within the limits of the sum of their share of the contribution and a specified borrowing multiplier. In this 120 billion U.S. dollars "Multilateral Chiang Mai Agreement" currency swaps, China and Japan each contributed 38.4 billion U.S. dollars (each accounting for 32 percent), South Korea contributed 19.2 billion U.S. dollars (accounting for 16 percent), the remaining part of the ASEAN countries. In other words, the development of such bilateral currency swap agreements is indeed a new fact in the process of historical development. This determines that China's strategy of marginalizing the dollar is necessarily taking place in a global context that is conducive to the expansion of the yuan's influence. Why does the marginalized dollar strategy exist? In my view, China's strategy of marginalizing the dollar not only has its own unique reasons, but also must have considerable conditions for its existence and development. Because, in the world, in the United States imperialist power and the hegemony of the dollar international monetary system, there is a small piece to a number of yuan "red zone" long-term existence, and even gradually marginalize the dollar, which is extremely difficult. The marginalization of the dollar strategy can not take place in any capitalist country, nor in any colonial or semi-colonial country subject to imperialist neo-colonial political domination, but inevitably in the socialist system of the market economy of China. This is because the United States has long been planning for global economic hegemony, and since the Second World War it has been carrying out continuous economic bundling among the major capitalist countries, thus usurping the monetary sovereignty of each country in the true sense of the word, which is one of the characteristics of the globalized economy. These capitalist countries have tied their wagons of interest firmly to the wheels of the United States, and even if any capitalist country that threatens the dollar monetary system tries to expel the dollar from its own region, it may have to pay a very high economic price due to the free market of capital globalization. Therefore, not only does none of the capitalist countries in the world have a strategy of marginalizing the dollar, but even the colonies in the sense of having U.S. military bases and the semi-colonies in the sense of having governments that are independent but subject to U.S. interference and domination do not have a strategy of marginalizing the dollar, and it is only in the case of a socialist country with a market economy under a socialist system, such as China, that such a strategy occurs. It is only socialist countries with a market economy under a socialist system, such as China, that have such a strategy. There are two reasons for this strategy: the internationalization of the yuan (which is not a capitalist economy) and the weakening of the hegemonic monetary policy of U.S. imperialism in the world. Because of the serious threat to the global economy posed by the irresponsible monetary policy of U.S. imperialism, the more the U.S. dollar depreciates, the more the countries of the world will be forced to leave the dollar behind and settle their accounts in their own currencies, so that a small piece of the yuan, or a number of small pieces of the yuan's "red zone," led by China's ****-producing party, will be in the middle of the four perimeters of the dollar hegemony of the countries of the world. This will enable a small "red zone" of the yuan, or several small zones, led by the Chinese ****-producers, to take place in the middle of the hegemony of the dollar in all countries of the world. Uzbekistan, Kazakhstan, and other important corridors connecting the Eurasian continent are just a few of the many small pockets. Of course, there are some people who, perhaps at a time when imperialism is pressing us more y and we are in a difficult stage, doubt the existence of the impact of such a policy of expanding the yuan and the strategy of marginalizing the dollar and make pessimistic statements, because they do not recognize the reasons for the emergence, existence and long-term development of the yuan "red zone", i.e., the reasons for imperialism's "red zone". This is because they do not realize the reason for the occurrence, existence and long-term development of the "red zone" of our RMB, namely, that the kidnapping of the world economy by the imperialist economic system and its monetary policy tools and their oppression, exploitation and plundering of the peoples of all countries are continuous, so there is no doubt that the expansion of the "red zone" of the RMB and the strategy of marginalization of the US dollar will take place, exist and develop, and the peoples of all countries will take up the currency in their own hands to make their own decisions. It is also entirely possible that the people of the world will independently take up their monetary weapons to support our ongoing struggle - given that our stable RMB policy is popular. Therefore, the implementation of China's strategy of marginalizing the dollar is inevitably accompanied by another phenomenon, that is, the struggle between imperialism and the Third World countries that have long been subjected to political oppression and economic plunder by imperialism, as well as the contradictory struggles between imperialism and the camps of its capitalist allies. In other words, the "red zone" of the renminbi, as laid out in China's strategy of marginalization of the dollar, will develop first and exist for a long time not in the old imperialist countries that have not been subjected to imperialist political oppression and economic plunder, such as Great Britain, France, Italy, and the countries of Western Europe, but rather in those countries that have suffered greatly from the hegemonic economic system and political oppression of imperialism, as well as in the Third World. Imperialist hegemonic economic system of political oppression and economic plunder of countries, such as Japan, South Korea, Singapore, Thailand, Malaysia, Russia and other countries, which also has the world's countries to the U.S. exchange rate of the United States of America to force, military oppression and plunder of national wealth of many of the political and economic struggle on a wide range. Based on this international political situation and the reality of China's economy, it is determined that the entire content of our marginalization of the dollar is a monetary weapon that can be held in the hands of the peoples of the world by their own choice, including: the overthrow of the U.S. imperialist economic system and its monetary policy tools on the world economy kidnapping, the completion of the changes in the international monetary system and the implementation of the new alliance-type of the monetary system to build, and the complete elimination of the U.S. dollar hegemony's oppression, exploitation and plunder of the peoples of the world. The actual impact of this change, after July 2009, is developing day by day. Specific Deployment of the Strategy of Marginalizing the U.S. Dollar In order to achieve this strategic goal, China must take a patient and persistent approach on each of its strategic fronts, but also pay attention to steady action and gradual expansion, to slowly marginalize the dollar's global monetary influence, to carefully consolidate the gains it has already made (the RMB's "red zone"), and to bring the victory of this achievement to a successful conclusion. and expanding the success of this achievement. At the same time, in order to deal with the inevitable economic struggle against the U.S., China has to plan for long-term persistence, prepare for an extremely hard struggle for one to two years, and be prepared for contingencies. My view is that it is appropriate to pay attention to the following three central strategic fronts in the context of the strategic deployment. The central front of the strategy to marginalize the dollar On the central front, China has in recent years relied primarily on signing RMB bilateral currency swap agreements and supporting and strengthening the RMB's global currency influence by expanding the regional deployment of RMB trade settlements and by selectively deepening its cooperation (e.g., free trade zones). China's main modus operandi has been focused on conducting diplomacy and reaching **** understanding, particularly aimed at emphasizing China's **** common interests with the majority of the world's developing countries, especially under the hegemonic system of the US dollar, while seeking to thwart the oppression of the global economy by the US dollar monetary system. In the United States announced a large-scale quantitative easing monetary policy soon after the period, China's reform and opening up thirty years of huge economic achievements had been the United States attention to a special target. In order not to put the security of China's dollar assets in great jeopardy, China took care to cultivate relations with other developing countries in a systematic and step-by-step manner, to leverage anti-dollar hegemony sentiments to promote the RMB's global strategy and limit the dollar's monetary influence, and to encourage the expansion of the RMB's "red zone" and the marginalization of the dollar's strategy. The expansion of the yuan's "red zone" and the marginalization of the dollar have been encouraged. In May 2009, for example, China and Brazil signed a $10 billion loan-for-oil agreement (a 10-year deal in which China would provide Brazil with a loan and Brazil would supply 60,000 to 100,000 barrels of oil per day to Sinopec and 40,000 to 60,000 barrels of oil per day to PetroChina) aimed at weakening the West's control over energy in Latin America. For the first time, the Brazilian side has proposed that the two countries settle their bilateral economic and trade agreements in yuan, in order to actively support the internationalization of the yuan. The scale of this has reached widespread proportions, especially in the ASEAN region, mainly through the China-ASEAN Free Trade Area (CAFTA), which promotes trade and economic integration as well as cross-border trade settlement in RMB (the People's Bank of China issued the "Administrative Measures for the Pilot Scheme of Cross-border Trade Settlement in RMB" on July 1, 2009, and formulated the "Implementing Rules for the Pilot Scheme for the Pilot Scheme of Cross-border Trade Settlement in RMB" on July 3, 2009). In addition, Jorge Castro, Director of the Institute for International Strategic Studies in Argentina, said that the investment and trade relations between China and South American countries are developing very rapidly, and South American countries are very interested in holding RMB assets, so the South American region can become a pilot region for China to accelerate the internationalization of the RMB, in order to reduce the dependence on the U.S. dollar. According to a new research report by Standard Bank Group, at least 40 percent of China-Africa trade, or $100 billion, will be settled in RMB by 2015, which is close to the 2010 China-Africa trade volume. Not only that, but at least $10 billion of Chinese investment in Africa will also be settled in RMB over the same period. Given that China today is Africa's largest trading partner, the rise of the RMB in Africa is unquestionable, and Africa can help China make a qualitative leap forward in the gradual internationalization of the RMB. China's move from deploying most of Asia and rapidly expanding ASEAN to rapidly finalizing RMB bilateral currency swap agreements and free trade agreements for most of South America has put U.S. strategic expansion in Africa on the back foot. In particular, the widespread distribution of China's bilateral currency swap programs and RMB trade settlements centered on Africa, Asia, and South America radiating toward Europe has allowed for the rapid strategic weakening of the US dollar and the achievement of a political initiative. In a broader sense, this Chinese strategy of marginalizing the dollar globally is perhaps best described as a political strategy of attrition, aimed at weakening the dollar's ties to other countries without causing panic in the global monetary system or stimulating a violent U.S. reaction to the gradual, incremental marginalization of the dollar by countries around the world. The ongoing and very real expansion of the Chinese renminbi's global influence is undoubtedly aimed at posing a potential threat to U.S. monetary influence through its deployment on a broad scale around the globe, and at the same time is providing the world's nations with a new monetary weapon - offering any nation that seeks to break with the hegemonic U.S. dollar monetary system and loose monetary policy the opportunity for ideological, political and economic cooperation support. Most countries have chosen to follow China's lead in taking up this weapon. For example, the Central Bank of Russia issued a statement in October 2009 that India and Russia had signed an agreement to study the feasibility of using the ruble and the rupee in settling trade between the two countries and the specific operational methods to cope with the rapid depreciation of the US dollar; Brazil and Argentina have already initiated a system of local-currency settlements for their bilateral trade, and other South American countries such as Chile and Uruguay are also hoping to join this system in order to minimize the risk of the US dollar falling in value. Also hope to join the system, in order to reduce the dependence on the dollar. This has created a directional trend in the international arena where governments, including those in Europe, are more inclined to "marginalize the dollar" than to oppose the expansion of the RMB's global influence. In addition, the expansion of the RMB's influence has given most countries an alternative to the dollar rather than a "have to" response to the dollar, even though China's overall economic level has always been lower than that of the United States (the difference between a developing and a developed country). This trend has thus contributed to the expansion of China's strategy of marginalizing the dollar, and even the growth of anti-dollar hegemonic monetary systems in some countries. In short, China has begun to recognize that the United States is in a period of historic decline, due to the fact that it still holds a lot of dollar reserves, roughly three-point-eight trillion dollars, of which holdings of U.S. Treasuries are about more than one trillion dollars (about one-third of the total). And according to American economist and Nobel Prize-winning economist Paul Robin Krugman (Paul Robin Krugman), "If the U.S. long-term Treasury credit rating is downgraded, meaning that U.S. bond yields rise and prices fall, China's purchases of U.S. debt are expected to suffer investment losses that could be as high as twenty to thirty percent, if China's holdings of If China's $1,152 trillion in U.S. Treasuries were to fall by a minimum of 20 percent, it would lose about $230.4 billion, which is equivalent to a per capita loss of $177 in China (equivalent to about 1,140 yuan). The 20 percent loss is a very rough estimate. If the U.S. defaults on its debt, China will have to pay more than the above estimate." This means that if the U.S. launches a new attack on China over its irresponsible monetary policy, the Chinese side, in order not to be caught in a double passivity politically and economically, will systematically and steadily cut off the U.S. economic lifeline, the dollar currency, from the dominant position in the international monetary system--the link between the U.S. and the international monetary system. -the link between the U.S. economic lifeline, the dollar currency, and the dominant position of the international monetary system, as well as to rapidly weaken the dollar politically so that China's struggle on the economic front can be shifted to the struggle on the political front under more favorable conditions, in order to take the initiative. To this end, it is very important to continue the implementation of the strategy of marginalization of the US dollar, and the tasks at the present stage are as follows: (1) Since the summer of 2009, the strategy of marginalization of the US dollar has been unfolding on an extremely broad scale and to an extremely profound extent, and the requirements of the first stage of its implementation have been basically fulfilled in about three years. The old "bases" will be firmly and permanently consolidated, while the new "cooperative households" will continue to develop. In order to accomplish this task, the approach to be adopted is to develop ourselves and unite the allies. This approach dictates that the Chinese side, on the basis of earnestly consolidating and advancing the existing process of regionalization of the renminbi, should actively create conditions for the establishment of new renminbi trade settlement "cooperative households" and the expansion of bilateral currency swap agreements. In view of the fact that a considerable foundation has been laid over the past two years or so, it is necessary to make it possible to cover most of the countries in Asia, Africa and Latin America by the end of December 2012. Note that a one-fifth or one-third expansion of the old agreement areas is generally desirable. With regard to the possibility of completing the above program, different requirements should be set for different regions according to the actual situation: (1) The old agreement regions in East and Southeast Asia should generally focus on consolidating the RMB trade settlement, and then appropriately expanding trade and monetary cooperation and other projects in the old regions. (2) In regions where the proportion of signed agreements is not large, the existing "cooperative households" should be consolidated on the one hand, and actively developed on the other hand according to the conditions, paying attention to the problem of over-development that may occur in a few cases, and making every effort to consolidate them. (3) The leadership should be strengthened in regions where there are gaps in the agreements, and it should be emphasized that, on the basis of the correct idea of mutually beneficial cooperation in trade, we should strive to actively pilot the project by "turning over the soil" first and "test sowing" later. (4) On the issue of import and export trade, it is necessary to coordinate the types and quantities of imports and exports of the U.S., Russia, the U.K., France, Germany, Japan and other countries, or else we will be politically passive. (5) Attention should be paid to the tendency to shift import and export trade from Europe and the United States to developing countries and capitalist countries friendly with China, and at the same time to vigorously expand trade with Africa and Latin America. The possibility of the U.S. and its allied camps imposing *** with trade sanctions (or boycotts) on China is very great, and it is necessary to pay attention to and be prepared for it, so that the strategy of marginalizing the dollar and the RMB can gradually replace the dollar is very beneficial. Please take note of this. Here we are talking about "basically accomplished in about three years", not completely accomplished. The so-called "basically completed" means politically to create positive conditions for the wide distribution of China's bilateral currency swap program and RMB trade settlement, with Asia, Africa, and Latin America as the center, radiating to Europe and the United States. Although this task was basically accomplished last year, it was estimated for one more year in order to facilitate the in-depth development and consolidation of cooperation. The so-called all completed, that is, the RMB has a great advantage in the international arena, perhaps the world countries are very interested in how to strategically reserve RMB, which opens the way for China's RMB's international status. How long this will take, I can't say here, that will take opportunity, just as the dollar currency filled the British sterling vacuum on the Balkans after World War II. (b) Regarding the requirements of the second phase, there are several points of view: (1) In the West, efforts should be made to set up and break the U.S. political, diplomatic and public opinion attack on the RMB's global strategic plan, to expand the RMB's role in the international arena, and to develop the "cooperative household", so as to establish a "base" (i.e., the RMB's base) for the international community. base" (i.e., the RMB's "red zone"). It is reported that only in the first half of 2010, the United States exported to China's trade, 90% of the settlement in RMB, the Bank of England is considering signing a bilateral currency swap agreement with China's central bank, and RMB cross-border trade settlement has been launched in the United States within the JPMorgan Chase, and so on and so forth are very good. (2) In Asia, it is to further implement the united front work of the strategy of marginalizing the US dollar, i.e., the policy of "developing ourselves and uniting our allies" that we have put forward, and to put the task of the united front on a higher political weighting than the other tasks, and to pay attention to the consolidation of the "bases" (conditional and orderly) and the "bases" (conditional, orderly and orderly). Consolidation of the "base areas" (to deepen the scope of cooperation in an integrated and systematic manner under certain conditions and in a well-planned and step-by-step manner) remains my central task at present. In addition, attention should also be paid to the solid promotion of the RMB bilateral currency trading, as a preparation for the complete decoupling of the RMB and the U.S. dollar. (3) In South America, the first task is to strive for Brazil, Argentina, Cuba, Venezuela, Colombia, Peru and other countries to join our united front, while continuing to insist on the development of "cooperative households" in order to consolidate the "base areas". It seems appropriate to work on deepening unity and consolidating development based on friendly countries such as Brazil, Argentina, Venezuela, Cuba and Colombia. (4) In Africa, where the RMB's global strategic plan is a vital force, I can divide it into several groups, give them independence and make great efforts to expand my "base areas", which will not only deal a serious blow to the United States and its allied camps that are attacking militarily in the Arab world, but also indirectly show solidarity with the African people's patriotic and just anti-imperialist and anti-aggression struggles. This is not only a serious blow to the United States and its allied camps in the Arab world, but also an indirect act of solidarity with the African people in their patriotic and just struggle against imperialism and aggression. Taken together, the establishment of new "bases" in the West, the insistence on solidarity and consolidation of "bases" in Asia, the fight for a united front in South America, and the "efforts to expand the red" in Africa, will provide us with a new opportunity in the second phase (mainly in 2012) for the development of a new "base" in the Arab world, which will be the first phase in the world. This is our basic task in the second phase (mainly the three months of March, April and May 2012). In this way, China will have more power to meet the attack of the capitalist camp led by imperialism, more power to create a grand coalition of the world's countries to marginalize the US dollar, and to open up the channel of our internationalized currency, so that China will have all the good conditions to prepare for breaking the US conspiracy of "transferring the scourge of the river to the east" on political and economic issues, and to fight for a lasting peace in the world. and strive for lasting peace in the world. (c) In this period of strategic deployment of the central front, it is advisable to pay attention to: (1) Checking the situation of the united front. (2) To make a rough estimate of the impact of the U.S. trade sanctions against China on China's domestic economy. (3) Maintaining the stability of the RMB exchange rate, not only for economic considerations but also for political ones. First, the Plaza Accord of the 1990s and the recent appreciation of the yen are not far off, so we must not be cautious; second, China is a responsible power, maintaining the stability of the RMB exchange rate is beneficial to countries that have signed bilateral currency swap agreements with us and trade settlements in RMB, and it is also conducive to the recovery of the global economy. (4) In view of the fact that China's bilateral currency swap agreements and RMB trade settlement already have a considerable foundation, examine the achievements in expanding "cooperative households" and establishing and consolidating "base areas". Attention should be paid to the compilation and publication of the lessons learned in a booklet, which, in addition to being issued to the Politburo, the Secretariat, the Central Committee and the United Front Work Department for perusal, should be forwarded to our embassies in various countries for reference. (5) To check the situation of the integration of import and export trade. (6) To propose promptly to the United Nations the reconstruction of the world monetary system and to organize an international conference with the participation of representatives and experts from various countries, mainly from developing countries, and at the same time to help expand the dominant power of developing countries in the international monetary system. (7) The launching of active bilateral listing and trading of the renminbi (the core task of the second phase) must be carried out. (8) All preparations to deal with U.S. economic, political and military warfare must be completed. Marginalize the International Front of the Dollar Strategy On the international front, China relies more on political and diplomatic approaches than on the military and subversive means on which the U.S. relies. Since some countries around the world may have begun to realize in hindsight that too close a relationship and dependence on the U.S. in terms of economic trade and the monetary system is inappropriate, this gives China a political basis for pursuing renminbi trade settlements and bilateral currency swap agreements in countries around the world. Therefore, it is also necessary at this time to strive politically for the establishment of a broad united front of monetary union, mainly among developing countries and emerging currency market countries, and to a lesser extent among most capitalist countries that are seriously affected by the hegemony of the United States dollar. Governments, especially those of emerging currency markets, must realize that the purpose of China's proposal for a united front for monetary union is not to simply throw away the dollar currency, but to take advantage of another round of quantitative easing by the United States Government to raise the awareness of the governments and people of all countries in the world, and to expose the United States' "sky-high dollar" monetary policy as a threat to the American people, including the people of the United States. Monetary policy is economic plunder and political oppression of the peoples of the world, including the people of the United States. In other words, the strategy of marginalizing the US dollar is being pursued selectively, while at the same time establishing a multilateral currency swap fund organization, which will jointly manage the savings currencies of the member countries, in order to resolve the crisis caused by the instability of the US dollar, the dominant currency of the international monetary and financial system. Under this circuitous scheme, it is estimated that the dominant role of the United States dollar in the monetary and financial system may have been reduced by half or more, and the strategic role of the dollar's foreign exchange reserves similarly converted. Therefore, the focus of the multilateral currency swap fund organization is to maintain the stability and security of the international monetary and financial system by enabling the monetary reserves of the fund organization, purchasing the U.S. debt to absorb liquidity or selling part of the deflation, and then regulating the U.S. dollar currency and U.S. treasury bonds. This means that at this stage, China is not the United States from the center of the international monetary system completely stripped out, but temporarily continue to maintain the dollar in the monetary system within the framework of the link. This is a consideration for a potential strategic arrangement to bind the dollar through the special relationship of the United States with the already existing framework of the international monetary system, i.e., it is possible to turn the United States into a neutral member (rather than a dominant player) of the international monetary system through this factor. If this approach is realized, the United States, although formally perhaps belonging to the dominant player, will actually be constrained on key issues concerning global economic balance and sustainable development. In a broad sense, the current U.S. monetary and financial as the dominant international monetary and financial system, should be subject to constraints and obligations, with constraints to get things done, which is a dialectical reasoning. This is like between people and people have legal constraints, political parties and political parties have national constraints, countries and countries have countries between the United Nations and treaty constraints, that is, the entire solar system is also in accordance with the laws of the universe to run, if you are not willing to be constrained, human beings will be no more, the entire solar system may be no more. Therefore, it is important to look at the big picture rather than the small picture, and to look at long-term progress rather than immediate interests. If we can create such a stable and secure monetary and financial environment, it will be very good for the economic development of all countries in the world. This point, in the world by the United States monetary policy oppression of the emerging currency market countries and the vast majority of capitalist countries are in favor of us, and those who closely follow the interests of the United States, against us, only accounted for the absolute minority of all countries. So, is it not possible for the Chinese side to extend this principle to the whole world, as it did in the past when it put forward the Five Principles of Peaceful ****ing? This matter should be given active attention and political leadership should be stepped up. Of course because of accumulated habits, it is important to estimate the support of the International Monetary Fund (IMF), which was established based on the collapsed Bretton Woods system formulated by the United States, for the dollar's monetary policy, even though it is difficult for these efforts to be effective. A China that benefits from the marginalization of the dollar strategy and rapidly realizes the global influence of the yuan is bound to be y disturbing to U.S. strategists, and China's long-term strategic goal globally is not just to remain in a battle for influence with the U.S., but to create the prospect of another major center of economic power materializing in the developing world, the likes of which hasn't been seen since the first industrial revolution. Marginalizing the Peripheral Fronts of the Dollar Strategy On the peripheral fronts, the stability and security of the yuan's exchange rate has become a major concern for the United States. The U.S. is clearly aware of the growing wave of global marginalization of the dollar and anti-American sentiment, and therefore hopes that the growing tensions between the U.S. and China will eventually spill over into the stability of the RMB exchange rate, which will surely prompt the U.S. to try to use any current economic weaknesses, or even economic friction, to stop China's economic growth and global expansion of its monetary influence. According to the current situation, China and the United States exchange rate and trade struggle to maintain the current scale seems to be more appropriate, that is, in order to fight not to expand the premise, but also do not hope that the friction to narrow. I think it is not appropriate to "big fight", when can "big fight" or first fight some "small war", can be based on the expansion of the global strategic deployment of the yuan to make decisions. With regard to the clamor of the United States on the issue of the exchange rate of the RMB, if we adopt the diplomatic approach of "one thing at a time", it is easy to fall into political passivity, therefore, it seems inappropriate to talk to the United States about this matter unless the United States has changed their attitudes and stances on this issue, and then we will be qualified to talk about this matter again. It is advisable to pay attention to the following three aspects: (1) On the question of exchange rate manipulation, China and the United States have different views. The so-called change in the exchange rate is a market-based decision based on the supply and demand for foreign currency, and behind the demand for the dollar is the trade in dollar-denominated goods and services and the flow of financial assets. For example, other countries need dollars when they buy goods (U.S. commodities, international crude oil, gold, etc.) or financial assets (U.S. Treasuries, official U.S. dollar foreign exchange reserves, etc.) in U.S. dollars, all of which increases the demand for dollars, which means that, all else being equal, there is a rise in the dollar exchange rate and a fall in the price of goods in other countries relative to the price of goods in the United States. In contrast, the supply of dollars should come from the U.S. demand for other currencies, thus realizing a foreign exchange rate that expresses the price of the national currency in terms of another currency, and the price of the exchange rate is determined precisely by the balance between supply and demand. But in fact, the dollar exchange rate as one of the United States of America's monetary policy tools is the opposite: on the one hand, the dollar to its own exchange rate depreciation to achieve the dollar settlement of oil and gold and other commodities trading prices rose sharply, thus forcing the world's countries have to increase the demand for the dollar, which in turn triggered a global inflation, shear, including the United States of America's own people around the world's "wool". On the other hand, in order to avoid facing the exchange rate elevation generated by the increase in the demand for dollars, the U.S. government through large-scale quantitative easing monetary policy to increase the supply of U.S. dollars, not only to be able to cut down a large number of domestic fiscal deficits and U.S. foreign debt of the real count, but also to be able to the depreciation of U.S. dollars to achieve the relative appreciation of the exchange rate of other currencies, and thus to achieve the relative advantage of the weakness of the trade and export monetary policy. Doesn't this seem to make the United States the world's largest exchange rate manipulator? Is it not this reasoning? (b) The subprime crisis occurred in the United States a few years ago, resulting in a global economic depression, and even now the problem is not yet over. Subsequently, there were also two kinds of debates on whether the stimulus package of the United States was good or bad. In the U.S. view, quantitative easing monetary policy and continue the dollar devaluation is good, is conducive to easing the tension of the U.S. domestic economic contradictions. But