Have a read of this, it covers a lot of pertinent points. Death Knells For The US Dollar, Gold Price Ready To Explode Upward http://www.marketoracle.co.uk/Article36739.html Thoughts ?
Even though the Yuan may provide a better short term alternative to the US$ unless a multi-fiat grouped currency eventuates (preferably based on physical gold) the world economy will be lurching from one current currency disaster to another in relatively short order. Edit: on reflection that may actually be a bit unclear. Basically (paraphrasing Graham Summers), I've been skeptical about China for some time. While I do believe China has made some serious economic progress as a country, I remain thoroughly convinced that ultimately its economic "miracle" will be much like that of the Soviet Union "powerhouse" - apparently awesome in scope at the time, but a total fraud after the fact. Hence any currency based solely on the Yuan will end up (sooner rather than later) just as rubbish and debased as the US$. Only if it somehow bundled with others and backed by something tangible will there even be a credible alternative to the US (at which point the nosedive will happen suddenly and without warning).
Me also. I think it will become clear at some point that decentralization (in general and of money) will be the only way forward. The old ways are dying, slowly and painfully.
