China’s aid to Russia is poised to reshape the global economic landscape. China’s ad to Russia underscores their strategic partnership, with the People’s Bank of China collaborating with the Eurasian Economic Union to trial a new reserve currency. This move aims to reduce dependence on the US dollar and promote a multipolar economic order.
The question is whether these countries can develop an alternative new economic order to protect themselves from the fate that Europe imposed upon itself this year. The Euro Without German Industry. Michael Hudson.
China’s Aid to Russia
Russia, China and their 134 allies and trade partners will launch the new economic order when the auguries indicate. Right now..
Putin’s Busy
The SMO is distracting President Putin, but his Reserve Bank governor – the world’s best, say fellow-bankers – has been busy since the PBOC demanded a new reserve currency in 2009 (and most Nobelists agreed). She’s been trialing the new reserve currency1 with the PBOC and EAEU partners for the past 18 months and it’s ready for prime time.
Xi’s Distracted
By the Party’s National Congress but, if Taiwan’s upcoming mayoral elections suggest separation, he will embargo exports of integrated circuit to unfriendly countries. though it sounds like a big deal, China can enforce it with little effort. The PRC has a much greater advantage over the US around Taiwan than does Russia around Ukraine.
America’s Choices
The US must then choose between losing hegemony by doing nothing, losing hegemony by losing a war (for which China is fully prepared2 and the US is not), or launching its entire nuclear arsenal.
On current form, all a equally likely.
