Dr. Mahathir Mohamad thinks that the richer the Chinese get, they will not accept the domination of the Dollar. He thinks that China may force the world to trade in Yuan. This is certainly a scary thing for the United States!
If China could force the world to trade in Yuan, people like me who are living in the United States would have to face many scary outcomes of a much weaker Dollar. Just imagine if the world decides to drop the U.S. Dollar as the reserve currency, the United States then has to worry about the balance of trade even more than ever before.
A country in some ways is not that different than a normal household. Besides getting loans, what you make is what you have got to spend. Nonetheless, a normal household got bills to pay, and so what you make is what you have got to save somehow. Without enough saving, you don’t have enough money to spend. Living beyond one’s means will get one into huge debts.
Dr. Mahathir Mohamad hints that if China forces the world to abandon Dollar for Yuan, the United States won’t have enough gold and whatever to pay back debts and could declare bankruptcy overnight. I’m an American and so I don’t want to see something like this to occur, but we’re not Chinese and so we can’t really know what the Chinese would do when they get even richer.
Check out the video right after the break to see Dr. Mahathir Mohamad — current Malaysia’s prime minister — speaks on how the Chinese may drop the Dollar in the near future and force the world to trade in Yuan.