Can The US Dollar Face Down The Chinese Yuan?

Can The US Dollar Face Down The Chinese Yuan? by James G. Rickards, Mises Institute

[Editor’s note: Yesterday the International Monetary Fund designated the Chinese yuan as one of the global currencies used to calculate the value of Special Drawing Rights. This event may portend a significant reordering of the world’s monetary system, and serve as a recognition that the US dollar’s ongoing status as the world’s reserve currency is not guaranteed. Jim Rickards terms this a “political decision” by the IMF, and discusses what it means both for China and the US.]

Membership in the exclusive SDR currency club has changed only once in the past thirty years.

That change took place in 1999, and was purely technical...