Farewell CNY, it was a short time and not a good one

Those still arguing that the renminbi is the future reserve currency of the world need to answer some questions.

• How is it going to be possible when the Chinese capital account is closed?
• How is it going to be possible when nobody wants to hold CCP-threatened assets?
• How is it going to be possible when China runs a mercantile model?
• How is it going to be possible when it accumulates reserves in other currencies in defence of that model?
• How is it going to be possible when economic transparency can disappear at the whim of the emperor?
• How is it compatible with a Taiwan war and China being excised from the DM demand upon which it relies so fully?
• How is it compatible with the end of growth and Japanification?

On the other hand:

• The US dollar is getting stronger, not weaker with the revitalisation of NATO.
• The US dollar is getting stronger, not weaker as it leads the world in MMT.
• US government debt is owed entirely in its own denomination.

As such, I am about as surprised by the following as I am when I hit a table with my fist and it hurts:

It is my view that this CNY crash has every chance of reversing most if not all of its post-WTO-accession gains.

One thing is certain. As it falls, so will commodities (and just about everything else).