Hi 23
Its completely ridiculous to exclude the number 2 economy in the World from the SDR. Purely a political act.
In coming months, when the full effect of the drop in the oil price hits, the US will not be able to defend its position.
In the meantime ....China will continue to offload US treasuries [at the current inflated prices], will continue to buy gold [at the current deflated prices], will keep the Yuan pegged to the $US [which will have to start falling in value later in the year], while doing ever more deals in Yuan .... and,
when it suits them, China will free float the Yuan and the World will then essentially have 2 financial systems running in parallel.
A little article from Bloomberg highlighting some of the early problems emerging because the bottom is falling out of the oil price ... only the beginning, only the beginning......
http://www.bloomberg.com/news/articles/2015-08-04/the-oil-crash-has-caused-a-1-3-trillion-wipeout
