The Econoclasts China vs. the dollar & Europe's far-Right failure
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Nov 5, 2025 This week, the hosts challenge the conventional belief that China is actively seeking to replace the US dollar, highlighting Beijing's desire for sanctions independence instead. They explore how China’s approach to a reserve currency could demand substantial liberalization of its capital markets. Additionally, they critique the 'cordon sanitaire' strategy in Europe that excludes far-Right parties from coalitions, arguing it leads to stagnation and empowerment of these parties instead of resolution. The conversation intertwines global economics with evolving political dynamics.
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China Avoids Being The World's Reserve
- China does not actively pursue replacing the US dollar as the global reserve currency.
- Beijing prefers alternatives to avoid US coercion while keeping the benefits of dollar-denominated trade.
De-Dollarization Aims At Sanctions, Not Supremacy
- China wants to escape US sanction power rather than shoulder reserve-currency burdens.
- It builds payment infrastructure to reduce dependence without seeking dollar-style dominance.
One Currency Need Not Rule Forever
- A single dominant global currency may become unnecessary due to new infrastructures.
- Technologies like blockchain and crypto open paths for multi-currency arrangements.