1
00:00:03,120 --> 00:00:10,240
Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Former President Donald Trump

2
00:00:10,280 --> 00:00:13,960
Speaker 1: says the US dollar is under attack and.

3
00:00:13,920 --> 00:00:16,639
Speaker 2: We will keep the US dollar as the world's reserve

4
00:00:16,760 --> 00:00:19,800
Speaker 2: currency and is currently under major siege.

5
00:00:19,880 --> 00:00:21,760
Speaker 3: Many countries are leaving the dollar.

6
00:00:22,480 --> 00:00:25,919
Speaker 1: Since the spring, Trump has been expressing concern over the

7
00:00:25,960 --> 00:00:29,320
Speaker 1: idea that other countries may want to move away from

8
00:00:29,320 --> 00:00:32,120
Speaker 1: the dollar, and he's announced plans to try to keep

9
00:00:32,159 --> 00:00:34,800
Speaker 1: that from happening. This is from a rally he held

10
00:00:34,840 --> 00:00:36,000
Speaker 1: in Wisconsin this month.

11
00:00:36,280 --> 00:00:38,480
Speaker 2: They're not going to leave the dollar with me. I'll say,

12
00:00:38,520 --> 00:00:40,800
Speaker 2: you leave the dollar, you're not doing business with the

13
00:00:40,880 --> 00:00:43,720
Speaker 2: United States, because we're gonna put one hundred percent tariff

14
00:00:43,760 --> 00:00:46,120
Speaker 2: on your goods. Sir, We would like very much to

15
00:00:46,159 --> 00:00:48,520
Speaker 2: get back to the dollar immediately, Thank you very much.

16
00:00:49,040 --> 00:00:49,800
Speaker 2: It's so easy.

17
00:00:51,840 --> 00:00:55,640
Speaker 4: Trump he pioneered new ways of using tariffs as a

18
00:00:55,680 --> 00:00:59,160
Speaker 4: weapon of stay craft during his first presidency.

19
00:01:00,000 --> 00:01:03,440
Speaker 1: The most is Bloomberg Senior Washington correspondent and host of

20
00:01:03,440 --> 00:01:05,520
Speaker 1: Our Big Take DC podcast.

21
00:01:05,440 --> 00:01:08,839
Speaker 4: And he is already promising to go full board next time,

22
00:01:08,959 --> 00:01:13,720
Speaker 4: even deploy this giant tariff to protect apparently the US dollar.

23
00:01:16,400 --> 00:01:19,600
Speaker 1: Welcome to the Big Take Asia from Bloomberg News. I'm Wanha.

24
00:01:20,319 --> 00:01:22,800
Speaker 1: Every week we take you inside some of the world's

25
00:01:22,840 --> 00:01:26,959
Speaker 1: biggest and most powerful economies and the markets, tycoons, and

26
00:01:27,120 --> 00:01:31,040
Speaker 1: businesses that drive this ever shifting region. Today on the show,

27
00:01:31,440 --> 00:01:34,840
Speaker 1: could the US dollar really lose its special status as

28
00:01:34,880 --> 00:01:43,040
Speaker 1: the world's reserve currency and could the Chinese yun replace it? Sileia,

29
00:01:43,200 --> 00:01:45,160
Speaker 1: you have this new book out all about the dollar,

30
00:01:45,560 --> 00:01:49,160
Speaker 1: paper Soldiers, how the weaponization of the dollar changed the

31
00:01:49,160 --> 00:01:52,800
Speaker 1: world order. Remind us how the dollar became the world's

32
00:01:52,840 --> 00:01:54,760
Speaker 1: reserve currency in the first place.

33
00:01:55,480 --> 00:01:58,280
Speaker 4: So the owner of the world's reserve asset is always

34
00:01:58,360 --> 00:02:01,920
Speaker 4: the world's largest economy. So before the US, it was

35
00:02:02,240 --> 00:02:06,640
Speaker 4: Great Britain, and in the eighteen eighties the US outstripped

36
00:02:06,800 --> 00:02:10,720
Speaker 4: Great Britain in terms of sheer economic size. But it

37
00:02:10,760 --> 00:02:14,680
Speaker 4: didn't happen so quickly. It was nineteen forty four, after

38
00:02:14,919 --> 00:02:19,880
Speaker 4: two World Wars, when the economic policymakers of forty four

39
00:02:19,919 --> 00:02:24,840
Speaker 4: Allied nations gathered together for what later became the Bretonwoods Agreement,

40
00:02:25,280 --> 00:02:28,440
Speaker 4: and they all decided that the best way to avoid

41
00:02:28,760 --> 00:02:33,200
Speaker 4: another World war would be to create an economic brotherhood

42
00:02:33,240 --> 00:02:37,799
Speaker 4: where the world economy is knitted close together around shared

43
00:02:37,840 --> 00:02:40,800
Speaker 4: economic goals and They decided at that meeting that the

44
00:02:40,919 --> 00:02:45,360
Speaker 4: US dollar, because of the US's economic size, and also

45
00:02:45,440 --> 00:02:48,280
Speaker 4: because of the US is very good fiscal trajectory at

46
00:02:48,280 --> 00:02:52,120
Speaker 4: the time, that the US dollars should be the anchor

47
00:02:52,240 --> 00:02:57,120
Speaker 4: currency for the global financial system. And two other important

48
00:02:57,120 --> 00:02:59,520
Speaker 4: things happened. The World Bank was created and the International

49
00:02:59,520 --> 00:03:03,720
Speaker 4: Monetary un recreated, and all of that put together made

50
00:03:03,800 --> 00:03:08,200
Speaker 4: the US and its dollar become the world's reserve asset.

51
00:03:09,520 --> 00:03:12,519
Speaker 1: And of course, the dollars maintained its strength it has

52
00:03:12,639 --> 00:03:13,760
Speaker 1: the dollar is still strong.

53
00:03:14,040 --> 00:03:17,320
Speaker 4: Now. There are two definitions of a strong dollar. There's

54
00:03:17,600 --> 00:03:21,240
Speaker 4: strength in terms of foreign exchange rate, how it compares

55
00:03:21,720 --> 00:03:24,240
Speaker 4: to another currency, the yen that you on the euro.

56
00:03:24,880 --> 00:03:28,799
Speaker 4: The second definition of a strong dollar is its sheer dominance.

57
00:03:29,280 --> 00:03:32,239
Speaker 4: The whole global financial system is underpinned by the dollar.

58
00:03:32,280 --> 00:03:34,840
Speaker 4: That gives the dollar a lot of strength and power.

59
00:03:34,880 --> 00:03:37,280
Speaker 4: And that is another definition to a strong dollar.

60
00:03:37,640 --> 00:03:40,280
Speaker 1: And how is it, or actually, why is it that

61
00:03:40,360 --> 00:03:43,000
Speaker 1: other countries are incentivized to use dollars.

62
00:03:43,560 --> 00:03:46,840
Speaker 4: There's a couple of reasons. One, it's a safe investment.

63
00:03:47,920 --> 00:03:50,720
Speaker 4: You will always get a return on that investment. You

64
00:03:50,760 --> 00:03:53,760
Speaker 4: can park your cash a foreign central bank, a foreign

65
00:03:53,840 --> 00:03:58,200
Speaker 4: multinational company, a foreign individual can buy US government debt

66
00:03:58,480 --> 00:04:02,320
Speaker 4: or have any of their asset in American stocks, anything

67
00:04:02,320 --> 00:04:05,400
Speaker 4: that is denominated in dollars coming out of the US,

68
00:04:06,000 --> 00:04:09,680
Speaker 4: you are going to get a return on your investment

69
00:04:09,720 --> 00:04:13,560
Speaker 4: because the US has a lot of economic innovation that

70
00:04:13,720 --> 00:04:17,159
Speaker 4: is driven by its very huge fiscal deficit. It is

71
00:04:17,240 --> 00:04:20,600
Speaker 4: also the owner of the world's most powerful military, which

72
00:04:20,640 --> 00:04:24,120
Speaker 4: is also driven by our huge fiscal deficits.

73
00:04:24,440 --> 00:04:27,559
Speaker 1: But now we have Donald Trump out there basically saying

74
00:04:27,680 --> 00:04:31,279
Speaker 1: the dollar is in danger of losing its special status,

75
00:04:31,279 --> 00:04:34,320
Speaker 1: and he's saying that other countries are actually leaving the dollar.

76
00:04:34,800 --> 00:04:37,120
Speaker 1: Why is he saying that now? I mean, are there

77
00:04:37,240 --> 00:04:40,279
Speaker 1: other countries actually thinking about trading less with the dollar?

78
00:04:41,120 --> 00:04:44,800
Speaker 4: He has since March been publicly showing that he has

79
00:04:44,839 --> 00:04:49,360
Speaker 4: paid attention to the d dollarization discussion and actions that

80
00:04:49,440 --> 00:04:54,840
Speaker 4: have launched since the US led economic sanctions on Russia.

81
00:04:54,960 --> 00:04:59,719
Speaker 4: It was really the economic sanctions package in February twenty

82
00:04:59,760 --> 00:05:02,760
Speaker 4: twenty too when they invaded Ukraine, and that was a

83
00:05:02,920 --> 00:05:07,040
Speaker 4: massive package, and what it did was heavily curtail Russia's

84
00:05:07,080 --> 00:05:10,280
Speaker 4: access to the dollar, including its central bank. It really

85
00:05:10,520 --> 00:05:14,200
Speaker 4: put allies even and then a lot of adversaries on

86
00:05:14,279 --> 00:05:16,839
Speaker 4: guard that the US is willing to go quite far

87
00:05:17,760 --> 00:05:22,120
Speaker 4: to fight a proxy war with another country in terms

88
00:05:22,160 --> 00:05:25,599
Speaker 4: of weaponizing the dollar. And so you see the bricks

89
00:05:25,760 --> 00:05:31,480
Speaker 4: plus economies. It's Brazil, Russia, India, China, South Africa, and

90
00:05:31,760 --> 00:05:35,679
Speaker 4: it's a growing club of economies coming together saying let's

91
00:05:35,720 --> 00:05:39,039
Speaker 4: put our heads together and find a way to trade

92
00:05:39,320 --> 00:05:42,400
Speaker 4: less with the dollar and have our own shared currency

93
00:05:42,480 --> 00:05:46,400
Speaker 4: so that we're less beholden two US economic sanctions in

94
00:05:46,480 --> 00:05:49,640
Speaker 4: case we run a foul of whoever the sitting president

95
00:05:49,720 --> 00:05:50,080
Speaker 4: might be.

96
00:05:50,680 --> 00:05:54,000
Speaker 1: Now, Trump has said he'll answer those concerns about trading

97
00:05:54,080 --> 00:05:57,960
Speaker 1: less with the dollar with some really big, sweeping new tariffs.

98
00:05:58,520 --> 00:06:00,640
Speaker 1: He said, if he wins a second tur he'll put

99
00:06:00,680 --> 00:06:04,240
Speaker 1: in place a ten percent across the board tariff and

100
00:06:04,279 --> 00:06:07,000
Speaker 1: on goods imported from China, it's going to go as

101
00:06:07,120 --> 00:06:10,720
Speaker 1: high as sixty percent. That sounds like a real ramp up,

102
00:06:11,160 --> 00:06:14,080
Speaker 1: certainly from his first term as president. What do you

103
00:06:14,080 --> 00:06:14,520
Speaker 1: make of that?

104
00:06:15,080 --> 00:06:19,400
Speaker 4: Yeah, you know, he's noticed the economic sanctions fatigue that

105
00:06:19,520 --> 00:06:21,600
Speaker 4: is out there. He talks about how you need to

106
00:06:21,640 --> 00:06:26,040
Speaker 4: be judicious in use of economic sanctions, and maybe tariffs

107
00:06:26,160 --> 00:06:28,480
Speaker 4: is the way to go, because if you're using tariffs.

108
00:06:28,480 --> 00:06:31,240
Speaker 4: On the surface of it, it looks like you are

109
00:06:31,360 --> 00:06:35,200
Speaker 4: leveraging the US consumer market rather than leveraging the strength

110
00:06:35,200 --> 00:06:38,760
Speaker 4: of a dollar to sort of carry out your economic

111
00:06:38,800 --> 00:06:39,560
Speaker 4: policy goals.

112
00:06:39,880 --> 00:06:44,240
Speaker 1: Isn't Trump himself responsible for some countries looking to dedollarize

113
00:06:44,360 --> 00:06:46,360
Speaker 1: with his threat of tariffs and sanctions.

114
00:06:46,920 --> 00:06:51,279
Speaker 4: Trump is not the only president who bears responsibility. I

115
00:06:51,279 --> 00:06:55,440
Speaker 4: would say every president since nine to eleven has used

116
00:06:55,480 --> 00:06:59,800
Speaker 4: economic sanctions to achieve foreign policy goals. And if you

117
00:07:00,080 --> 00:07:02,159
Speaker 4: get a chart of the use of economic nations, the

118
00:07:02,200 --> 00:07:04,800
Speaker 4: line just goes straight up. And they went up a

119
00:07:04,800 --> 00:07:07,480
Speaker 4: lot under Obama as well, they went up even more

120
00:07:07,560 --> 00:07:09,960
Speaker 4: under Trump and then even more under Biden.

121
00:07:13,560 --> 00:07:17,160
Speaker 1: After the break, how the US and China have tussled

122
00:07:17,240 --> 00:07:21,280
Speaker 1: over allegations of currency manipulation in the past, and could

123
00:07:21,280 --> 00:07:24,480
Speaker 1: the Chinese yun replace the US dollar as a world's

124
00:07:24,520 --> 00:07:39,120
Speaker 1: reserve currency. We've been talking about former President Donald Trump

125
00:07:39,400 --> 00:07:42,440
Speaker 1: and concerns that the US dollar could be replaced as

126
00:07:42,440 --> 00:07:45,520
Speaker 1: a world's reserve currency, and when it comes to the

127
00:07:45,600 --> 00:07:49,640
Speaker 1: dollar in global trade, Trump's also accused other countries of

128
00:07:49,720 --> 00:07:53,800
Speaker 1: currency manipulation, and one country he's pointed the finger at

129
00:07:53,880 --> 00:07:56,840
Speaker 1: repeatedly is China.

130
00:07:56,920 --> 00:08:00,800
Speaker 3: But that's happening, and it's happening even worse with China.

131
00:08:00,920 --> 00:08:05,360
Speaker 3: They manipulate their currency better than any country in the

132
00:08:05,400 --> 00:08:09,160
Speaker 3: history of the world in history history. And we are

133
00:08:09,200 --> 00:08:13,160
Speaker 3: now working on a new trade deal with China, but

134
00:08:13,240 --> 00:08:18,720
Speaker 3: it must include real structural change to and unfair trade practices.

135
00:08:19,200 --> 00:08:24,160
Speaker 3: Not only has China declined to adopt Promise reforms, it

136
00:08:24,200 --> 00:08:29,440
Speaker 3: has embraced an economic model dependent on massive market barriers,

137
00:08:30,200 --> 00:08:34,480
Speaker 3: heavy state subsidies, currency manipulation product.

138
00:08:34,520 --> 00:08:37,600
Speaker 1: And besides China, there are other Asian countries that the

139
00:08:37,679 --> 00:08:42,160
Speaker 1: US Treasury Department says it's monitoring for currency practices, places

140
00:08:42,200 --> 00:08:47,080
Speaker 1: like Malaysia, Singapore, Taiwan, Vietnam, and Japan was added to

141
00:08:47,080 --> 00:08:50,760
Speaker 1: the list this summer. What is the US's concern overall

142
00:08:50,920 --> 00:08:53,520
Speaker 1: about what could happen with these other currencies.

143
00:08:54,120 --> 00:08:59,680
Speaker 4: The general concern is just that countries will meddle with

144
00:08:59,800 --> 00:09:03,160
Speaker 4: the terms of trade, with the natural laws of supply

145
00:09:03,200 --> 00:09:08,000
Speaker 4: and demand, and keep down the value of their currencies

146
00:09:08,040 --> 00:09:11,160
Speaker 4: against the dollar in order to capitalize on the US

147
00:09:11,200 --> 00:09:15,160
Speaker 4: consumer market. And that is not good for American manufacturers

148
00:09:15,200 --> 00:09:19,000
Speaker 4: and companies and blue collar workers. In the mid two

149
00:09:19,000 --> 00:09:22,840
Speaker 4: thousands and around, the global financial crisis. There allegedly was

150
00:09:22,840 --> 00:09:26,800
Speaker 4: a case to be made to charge China with actual

151
00:09:26,840 --> 00:09:30,079
Speaker 4: currency manipulation, but the US decided not to do it

152
00:09:30,120 --> 00:09:33,839
Speaker 4: because they wanted China's cooperation and they were trying to

153
00:09:34,040 --> 00:09:38,680
Speaker 4: sort of use backdoor channels and talks to slowly wean

154
00:09:38,840 --> 00:09:39,960
Speaker 4: China off that habit.

155
00:09:40,360 --> 00:09:43,160
Speaker 1: And of course that relationship between the US and China

156
00:09:43,280 --> 00:09:45,480
Speaker 1: has been a symbiotic one, right, which you also talk

157
00:09:45,559 --> 00:09:46,920
Speaker 1: in the book as well. I mean, how does that

158
00:09:47,040 --> 00:09:48,319
Speaker 1: work through currency?

159
00:09:48,679 --> 00:09:51,000
Speaker 4: Yeah, and it's a chapter that I call a turbulent

160
00:09:51,040 --> 00:09:53,800
Speaker 4: marriage because the US and China they need each other.

161
00:09:54,280 --> 00:09:57,520
Speaker 4: They are deeply entrenched with each other still, but they're

162
00:09:57,559 --> 00:09:59,440
Speaker 4: at odds with each other. Now. The example that I

163
00:09:59,440 --> 00:10:02,240
Speaker 4: can give is that in the aftermath of the global

164
00:10:02,280 --> 00:10:04,600
Speaker 4: financial crisis in two thousand and eight, you know, it

165
00:10:04,600 --> 00:10:08,400
Speaker 4: was an American made crisis that spilled into the rest

166
00:10:08,440 --> 00:10:12,680
Speaker 4: of the world. Everyone suffered, and the Chinese had a

167
00:10:12,960 --> 00:10:17,800
Speaker 4: humongous holding of assets in US dollars, whether it was

168
00:10:18,280 --> 00:10:22,600
Speaker 4: shares or ownership stocks and Fanny and Freddy or in

169
00:10:22,880 --> 00:10:27,840
Speaker 4: US treasuries are US government bonds. So if treasuries and

170
00:10:27,880 --> 00:10:30,480
Speaker 4: the US economy was not doing well, it was bad

171
00:10:30,520 --> 00:10:34,880
Speaker 4: for China because of their investments. And so China couldn't say, Okay,

172
00:10:34,880 --> 00:10:37,280
Speaker 4: we're pulling out of the US economy because as they

173
00:10:37,280 --> 00:10:39,840
Speaker 4: would pull out of this massive stake, you know, the

174
00:10:39,920 --> 00:10:42,280
Speaker 4: first ten percent, maybe you'd win, and then the next

175
00:10:42,360 --> 00:10:45,160
Speaker 4: ninety percent, prices would just plummet and you would take

176
00:10:45,200 --> 00:10:48,080
Speaker 4: a loss. Right, And the US also realized that we

177
00:10:48,200 --> 00:10:51,280
Speaker 4: need to keep in close contact with China because we

178
00:10:51,400 --> 00:10:54,000
Speaker 4: need their support. We don't want them to pull out.

179
00:10:54,040 --> 00:10:58,400
Speaker 4: And that relationship, just that one tiny example, it tells

180
00:10:58,440 --> 00:11:00,840
Speaker 4: you how deeply integrated the two countries are.

181
00:11:01,760 --> 00:11:05,000
Speaker 1: We've talked a lot about Trump and his plans to

182
00:11:05,080 --> 00:11:07,800
Speaker 1: try to protect the US economy and its status as

183
00:11:07,800 --> 00:11:10,800
Speaker 1: a world's reserve currency. What do we know about what

184
00:11:10,880 --> 00:11:13,800
Speaker 1: his opponent, Kamala Harris has said or has in mind

185
00:11:13,840 --> 00:11:15,280
Speaker 1: to you know, around the dollar.

186
00:11:15,600 --> 00:11:18,520
Speaker 4: We don't know anything we have not heard. There is

187
00:11:18,520 --> 00:11:21,160
Speaker 4: an absolute paucity of policy when it comes to Harris's

188
00:11:21,200 --> 00:11:24,120
Speaker 4: campaign right now. We don't know much about her foreign

189
00:11:24,160 --> 00:11:29,280
Speaker 4: policy or her international economic diplomacy and plans. Part of

190
00:11:29,280 --> 00:11:31,480
Speaker 4: that has to do with the fact that she launched

191
00:11:31,480 --> 00:11:33,720
Speaker 4: her campaign veryy late. Part of it has to do

192
00:11:33,760 --> 00:11:36,439
Speaker 4: with the fact that she could rely on the Biden

193
00:11:36,600 --> 00:11:39,119
Speaker 4: administration and lean on some of those policies.

194
00:11:39,720 --> 00:11:42,440
Speaker 1: Okay, so we've talked a lot about concerns that the

195
00:11:42,480 --> 00:11:46,200
Speaker 1: dollar could be replaced as a world's reserve currency. But

196
00:11:46,400 --> 00:11:49,000
Speaker 1: based on your reporting, how likely is it that this

197
00:11:49,080 --> 00:11:50,320
Speaker 1: could actually happen.

198
00:11:51,559 --> 00:11:53,840
Speaker 4: One thing to point out is that the tide is turning,

199
00:11:53,880 --> 00:11:57,160
Speaker 4: but only in terms of rhetoric. No one has abandoned

200
00:11:57,200 --> 00:12:00,400
Speaker 4: the dollar. There is slightly less trade in the dollar

201
00:12:00,600 --> 00:12:04,560
Speaker 4: compared to before, but it will be very hard to

202
00:12:04,880 --> 00:12:09,160
Speaker 4: actually supplant the dollar. There's three main reasons for that.

203
00:12:09,520 --> 00:12:14,600
Speaker 4: It's because the dollar is big, it's stable, and it's entrenched.

204
00:12:15,040 --> 00:12:19,280
Speaker 4: So the dollar rules because the US economy is the biggest.

205
00:12:19,760 --> 00:12:23,040
Speaker 4: It is almost biggest, as numbers two, three, and four

206
00:12:23,200 --> 00:12:27,960
Speaker 4: on that list. China, Japan, and Germany combined banknotes have

207
00:12:28,240 --> 00:12:30,440
Speaker 4: the words in God we trust printed on them. But

208
00:12:30,480 --> 00:12:34,960
Speaker 4: it's the strength of American institutions that underpin investors faith

209
00:12:35,040 --> 00:12:39,880
Speaker 4: in the dollar, rule of law, independent institutions, pre and

210
00:12:39,920 --> 00:12:44,680
Speaker 4: fair elections, and as I illustrate in paper soldiers, the

211
00:12:44,720 --> 00:12:48,640
Speaker 4: Treasury secretaries in the way they've dealt with foreign governments.

212
00:12:48,960 --> 00:12:51,920
Speaker 4: The dollar has this power of incumbency on its side.

213
00:12:51,960 --> 00:12:54,680
Speaker 4: You know, it's like trying to say the English is

214
00:12:54,679 --> 00:12:57,480
Speaker 4: not going to be the world's universal language. So that's

215
00:12:57,480 --> 00:13:00,480
Speaker 4: sort of a starting point. But there is death definitely

216
00:13:01,000 --> 00:13:05,000
Speaker 4: more discussion about de dollarization. It's a lot of rhetoric,

217
00:13:05,080 --> 00:13:09,560
Speaker 4: a few small moves. Now, nothing would happen quickly. This

218
00:13:09,600 --> 00:13:13,240
Speaker 4: could take a decade, maybe two decades to actually play out.

219
00:13:13,600 --> 00:13:18,080
Speaker 4: But it would mean that multinational companies, smaller emerging markets,

220
00:13:18,080 --> 00:13:21,800
Speaker 4: frontier markets, and mid size economies would need to consider

221
00:13:22,200 --> 00:13:26,719
Speaker 4: how they trade. So it's really hard to say exactly

222
00:13:26,960 --> 00:13:30,200
Speaker 4: how this would play out. In the past, it's taken

223
00:13:30,280 --> 00:13:36,720
Speaker 4: an economic crisis for a world's reserve asset to be dethroned.

224
00:13:38,280 --> 00:13:41,679
Speaker 1: Obviously, it would have huge ramifications for the global economy.

225
00:13:42,040 --> 00:13:43,920
Speaker 1: But you know, you do have China, the world's second

226
00:13:43,960 --> 00:13:47,599
Speaker 1: largest economy. Could China Could the yon be a currency

227
00:13:47,720 --> 00:13:50,240
Speaker 1: that supplants the dollar potentially? I mean, is there a

228
00:13:50,240 --> 00:13:51,959
Speaker 1: contender to supplant the dollar?

229
00:13:52,679 --> 00:13:55,000
Speaker 4: There really isn't contender. A lot of people talk about

230
00:13:55,000 --> 00:13:58,240
Speaker 4: the Chinese run. Now, China's economy is the world's second largest,

231
00:13:58,240 --> 00:14:02,000
Speaker 4: but it is still second play a long gap. The

232
00:14:02,080 --> 00:14:06,640
Speaker 4: other thing is that investors are really tied to the

233
00:14:06,679 --> 00:14:11,719
Speaker 4: world's reserve asset being backed by a democracy, an open democracy,

234
00:14:11,840 --> 00:14:15,240
Speaker 4: and that is not what China has. And the reason

235
00:14:15,600 --> 00:14:21,400
Speaker 4: investors want democracy underpinning the anchor to the world's financial

236
00:14:21,440 --> 00:14:25,000
Speaker 4: system is because that comes with transparency, which is also

237
00:14:25,040 --> 00:14:26,720
Speaker 4: something that the Chinese yan doesn't offer.

238
00:14:30,120 --> 00:14:32,880
Speaker 1: This is The Big Take Asia from Bloomberg News. I'm

239
00:14:32,880 --> 00:14:37,000
Speaker 1: wan ha. This episode was produced by Jessica Beck and

240
00:14:37,120 --> 00:14:40,080
Speaker 1: Young Young. It was mixed by Blake Maples and fact

241
00:14:40,160 --> 00:14:43,080
Speaker 1: checked by Thomas lou It was edited by Kaitlin Kenney.

242
00:14:43,400 --> 00:14:46,960
Speaker 1: Our senior editor is Elizabeth Ponso, Nicole Memester Bower is

243
00:14:47,000 --> 00:14:51,080
Speaker 1: our executive producer, and Sage Bauman is Bloomberg's head of Podcasts.

244
00:14:51,520 --> 00:14:54,840
Speaker 1: So Lea's book Paper Soldiers, How the Weaponization of the

245
00:14:54,880 --> 00:14:58,200
Speaker 1: Dollar Changed the World Order is now available in Korean

246
00:14:58,240 --> 00:15:01,800
Speaker 1: and Chinese translations. Please follow and review The Big Take

247
00:15:01,880 --> 00:15:05,040
Speaker 1: Asia wherever you listen to podcasts. It helps new listeners

248
00:15:05,080 --> 00:15:06,800
Speaker 1: find the show. See you next time.