Illuminating article. And if the yuan bonds information is real, it won't even take 4 years for a lot of global finance to move away from the dollar.
It might be tough for the US to accept the higher cost of global resources (and thus become a poorer country) but maybe this gradual decline in dollars status is what the administration hopes is the best case.
The yuan is not freely exchangeable and doesn't float. How can a currency like that be the world's reserve?
Would you agree to sell $10M in oil if you got paid in yuan that you're not sure you can convert into another currency? Where you're not sure the Chinese government won't change it's mind and dramatically change the exchange rate?
A lot of transactions moving away does not mean moving away entirely to a sole new supplier.
Even a 10% decline in dollar usage is "moving away". Bit by bit, the rest of the world starts using alternatives. That's how the British pound went down from global reserve to 4% of reserves. It took 70 years for this gradual decline.
I don't want to try again for someone who doesn't want to research for themselves how foreign countries accumulate reserves. Hint, you literally explained it.
Maybe like the UK but the problem with the US is that the US is a violent country. Lower standard of living is likely to cause violence. UK literally just lost all the colonial wealth but came together to build itself again.
In many ways, the US is a spiral descent culture while the UK lost is all and ascended again but to lower levels.
It's nonsense to claim that the USA is a particularly violent country. Since 1776, the per capita rate of violent deaths has been lower than Europe or China.
It might be tough for the US to accept the higher cost of global resources (and thus become a poorer country) but maybe this gradual decline in dollars status is what the administration hopes is the best case.