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China`s «whole-process people`s democracy» is «more extensive, more genuine, and more effective» than the American and Western democracy

People in the West like to think that democracy in the West is much better than autocracy in Russia and China. But, what if China`s «one rule» party, the CCP (China Communist Party) is a better solution than the democratic mess (according to Vladimir Putin) in the West?

Democracy is one of mankind`s greatest achievements. But, for democracy to thrive and grow it must also adapt. We need to know what a democracy is.

The word democracy comes from the Greek words «demos», meaning people, and «Kratos» meaning power, so democracy can be thought of as «power of the people». A way of governing which depends on the will of the people.

It is a system of government by the whole population or all the eligible members of a state, typically through elected representatives. A state governed under a system of democracy.

People in the West vote for their president, political parties, politicians, and prime ministers. In other words: a democratic process. But what about China? They are ruled by one party, and that is CCP. China`s Communist Party. Is it a democracy?

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The answer is yes. But it`s more sophisticated than we like to think. People in China call it «Whole-process people`s democracy, which is a Chinese Communist Party (CCP) political concept describing the people`s participation in, and relationship to, governance under socialism with Chinese characteristics.

The term «whole-process democracy» was used to describe existing governance practices such as Chinese experiments with democratic elements in the legislative process and in local government activities.

CCP general secretary Xi Jinping first used the term publicly on November 2, 2019, while visiting Shanghai, and he stated:

«China`s people`s democracy is a type of whole-process democracy» in which legislation is enacted «after going through procedures and democratic deliberations to ensure that decision-making is sound and democratic.»

On July 1, 2021, Xi incorporated the word «people`s» into the concept during his speech at the 100th Anniversary of the Chinese Communist Party, coining the concept’s current name «whole-process people`s democracy.»

Xi tied the concept to «common prosperity.»

The addition of «people`s to the concept emphasizes the Maoist practice of the mass line.

Xi describes four components of whole-process people`s democracy, expressed as pairs relationships:

  1. Process democracy and achievements democracy
  2. Procedural democracy and substantive democracy
  3. Direct democracy and indirect democracy
  4. People`s democracy and the will of the state

According to Xi, this results in «real and effective socialist democracy.»

The concept`s emphasis on «whole-process» is intended to further distinguish the CCP approach to democracy from the procedural qualities of liberal democracy. It includes primarily consequentialist criteria for evaluating claims of democracy`s success. In this view, the most important criterion is whether democracy can «solve the people`s real problems,» while a system in which «the people are awakened only for voting» is not truly democratic.

Liberal democracy or Western democracy is the combination of a liberal political ideology that operates under a representative democratic form of government. It is characterized by-elections between multiple distinct political parties, a separation of powers into different branches of government, the rule of law in everyday life as part of an open society, a market economy with private property, and the equal protection of human rights, civil rights, civil liberties, and political freedoms for all people.

To define the system in practice, liberal democracies often draw upon a constitution, either codified or uncodified, to delineate the powers of government and enshrine the social contract.

Whole-process people`s democracy also serves as a political tool to both defend the Chinese government`s governance practices and criticize liberal democracy.

In the CCP`s view, whole-process people`s democracy is «more extensive, more genuine, and more effective» than American democracy.

The CCP uses the concept of whole-process people`s democracy as a means to participate in global discourses on democracy, seeking to deflect criticism and improve its foreign relations. This ties into the government`s larger efforts to promote its global leadership.

In that regard, the Chinese government`s 2021 white paper China: «A Democracy that Works» emphasizes the whole-process people`s democracy perspective in an effort to demonstrate the country`s «institutional self-confidence.»

The white paper argues that the whole-process people`s democracy is the impetus behind China`s development and growth.

Qin Gang is a Chinese diplomat and politician, and he stated this. «Isn`t it obvious that both China`s people-center philosophy and President Lincoln`s «of the people, by the people, for the people», are for the sake of the people? Shall we understand China`s socialist whole-process democracy as this: from the people to the people, with the people, for the people?»

China practices the whole-process people`s democracy, which not only means that people engage in democratic elections, but they`re also involved in consultations, decision-making, management, and oversight.

According to CCP, people`s democracy is the lifeblood of socialism, and it is integral to China`s efforts to build a modern socialist country in all respects.

If we compare Chinese Democracy with American Democracy or Western Democracy, the key difference is that China focuses far more on substantial democracy. Western Democracy places more emphasis on procedural democracy. A Democracy in the West is equivalent to «one person, one vote, universal suffrage, and a multi-party system.»

China`s democracy focuses far more on the purpose and objectives of democracy. Especially good governance, and what they can deliver to the people.

Whole-process democracy encourages the expansion of democratic channels, and diversifies the forms of democracy, so as to ensure that people can participate in the management of State, economic, cultural, and social affairs.

It also ensures that people`s congresses at all levels are formed through democratic elections, and guarantees that people`s congresses and their standing committees lawfully exercise the powers of enacting laws, conducting oversight, making decisions, appointing, and removing officials.

It improves the working mechanisms for drawing on public opinion and pulling the wisdom of the people. And these are not only words. When Chinese leaders say something, they mean it and take action to turn that into reality.

The Chinese people`s political consultative conference (CPPCC), is China`s highest advisory body and plays a vital role in China`s consultative democracy. It encourages active participation in the deliberation, and administration of state affairs, promoting the democratic, and scientific decision-making process of the party, and the state.

The CPCC has more than 3,200 organizations at four administrative levels. National, provincial, city, and country, with more than 600,000 CPPCC members from 34 areas, including 8 other political parties, and representatives from Science and technology, literature and art, economics, sports, religion, and other areas.

According to Chair Professor at Soochow University, Victor Gao Zhikai, few people in Western countries want to acknowledge that the Communist Party of China is not the only political party at all. In addition to the CPC, there are 8 other democratic parties;

  • The Communist Party of China
  • The Revolutionary Committee of the Chinese Kuomintang
  • The China Democratic League
  • The China Democratic National Constitution Association
  • The China Association for Promoting Democracy
  • The Chinese Peasants and Workers Democratic Party
  • The China Zhi Gong Party
  • The Jiu San Society
  • The Taiwan Democratic Self-government League

In addition to this, there is a large Chamber of Commerce, which caters to business owners, private business owners, etc, and on top of that, there is a larger group of people called people without political affiliations.

This is the only way China has achieved such explosive productivity, efficiency, and economic, and political transformation over a short period of only about 43 years.

The legislative information offices not only promote China`s rule of law, but also practice whole-process people`s democracy by listening to the public and gathering the wisdom of the people for efficient, and high-quality National legislation.

The small grassroots legislative information office has become a significant democratic platform.

It`s all a part of a Chinese evolution. In November 1931, before the People`s Republic of China was established, the first national people`s Congress of the Soviet Republic of China was held in Zhangshi province.

In caves along the northern Shanxi Plateau, they used soybeans to cast their votes to elect the cadres. In September 1954, the first session of the first national people`s Congress was held. Marking the official establishment of the people`s Congress system as the fundamental political system in China.

After decades of practice, and exploration, China has been continually improving the people`s Congress system. People accessing their voting rights is an important manifestation of people being the masters of the country, which is the essence of democracy.

Among the nearly 3,000 deputies to the 14th NPC, 16,69% are workers and farmers. Besides the Communist Party, there are 8 other political parties that all have representation in the NPC. There are also a sizable proportion of delegates without any stated political affiliation. The 55 ethnic minorities hold 14,85% of the NPC seats.

For many people in the West, democracy means the right for each person to vote for their leaders. This is basically why they reject the idea that China has a democracy. But what people in the West don’t understand is that Chinese people are deeply involved in the elections of leaders of various levels.

Millions of urban and rural citizens do in fact directly vote for the representatives who govern their daily lives, who then make decisions that accurately reflect the needs, and desires of the people from the most fundamental level.

It`s normal for more than 90% of Chinese voters to turn out in the village, and Community elections all across China, which is much higher than in most Western democracies.

There are now over 2,7 million deputies in the people`s Congress across the country. More than 1 million registered voters have participated in county, and Township level elections.

The ultimate goal of elections is to choose the virtuous, and the capable who can solve today`s most urgent problems, and lead the country toward development.

China`s political system guarantees the rights of its people to elect their representatives, but more importantly, it guarantees that those representatives will be held accountable to the people.

The CPC leadership regards democratic supervision by the people as one of the highest priorities. Article 3 of the Constitution of the people`s Republic of China states:

«All administrative, judicial, and procuratorial organs of the state are created by the people`s congress to which they are responsible, and under whose supervision they operate.»

Democratic supervision refers to consultative supervision carried out by means of opinions, suggestions, and criticism. China has implemented several channels of democratic supervision. Today, democratic supervision is part of everyone`s daily life. People can monitor, and supervise how authorities exercise power at any place, and at any time through many kinds of democratic channels, and platforms.

China has a 1,2,3,4,5 citizen hotline service center, and that has been going on since 1987. When you call 1,2,3,4,5 to file a complaint, an operator will put you through to the right department to talk to. In 2019, the hotline was upgraded with time-sensitive feedback services.

In 2021, the mechanism was further improved and upgraded. They selected the most common issues that people called about that were hard to solve. They dedicated special task forces to focus on these issues.

About 350 cities have these hotlines, and they provide first-hand information about public opinions and concerns that City officials could hardly get in other ways.

Since the founding of New China, people have expressed their opinions on state affairs, both large and small, and party leadership has been relentlessly exploring appropriate, convenient, and diversified forms of supervision by the people.

Satisfying the public need for information, and the need to speak out is no easy task for a country of 1,4 billion people. Undeterred by this daunting task, the country`s leadership has emphasized democratic supervision throughout the whole process of performing duties.

The only litmus test of a democracy is whether it can generate real benefits. Making the country a better place to live, and making the lives of its people better.

Democracy has always been cherished by China, and its people, and it will continue to evolve in China with its own Chinese characteristics. China has lifted nearly 99 million out of poverty. It has built the world`s largest social security system, and health care system, covering more than 1,3 billion people. More than 10 million jobs have been created each year for 15 consecutive years.

China`s success is caused by one major thing: capitalism. It doesn`t matter what system you have if you don`t earn money. Even the Soviets would have succeeded if they earned money. The editor’s opinion is that the difference between democracy, autocracy, or dictatorship is very tiny. It`s all about money. It`s money that matters. Money comes first.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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McDonald`s new name is Vkusno & Tochka

Historians do not fully agree on the starting and end of the «cold war», but the period is generally considered to span from the announcement of the Truman Doctrine on 12 March 1947 to the dissolution of the Soviet Union on 26 December 1991.

At the end of the cold war, corporations rushed into Russia and opened their businesses, and one of them was McDonald`s. They opened their first restaurant in Pushkin Square in Moscow on January 31, 1990. The same day they opened, thousands were lined up to try the new tasty burgers. And that ladies and gentlemen were synonymous with Capitalism, and its arrival symbolized Soviet Union`s impending demise. On May 16, 2022, McDonald`s announced that it was leaving Russia.

Photo by Rajesh TP on Pexels.com

Now, McDonald`s is selling all of its 850 restaurants in Russia after Vladimir Putin invaded Ukraine. After 80 years of socialism, people in Russia rushed to McDonald`s and the American culture. The new Western way of eating. But now people in Russia rush to the new Russian burgers at the new Russian fast-food chain called Vkusno & Tochka, which means «tasty and that`s it».

Founded by businessman Alexander Govor, who acquired all the restaurants for an undisclosed sum. But he said he paid «far lower than market price.» Govor has been a McDonald`s franchisee since 2015 when he agreed to open 20 restaurants through his business GiD LLC.

Govor also made a lot of money in mining and oil refining in Siberia. He made his wealth in the coal business as co-owner of the coal mining company Yuzhkuzbassugol, in his hometown of Novokuznetsk. He bought the mine together with Evraz during liberalization in the 1990s under President Boris Yeltsin.

Evraz bought out Govor from the company, and one of the owners is Russian billionaire Roman Abramovich (Chelsea FC).

When McDonald`s opened their first restaurant in Russia, it had this slogan: «If you can`t go to America, come to McDonald`s in Moscow.» That slogan is over and out, and in comes Vkusno & Tochka`s new slogan; «The name changes – love stays».

Most of the things in the restaurants are similar to McDonald`s. The same quality, and taste. The same equipment and the same double cheeseburgers. The difference is that most of the money goes to Russia. Not America anymore.

Many people in Russia wanted to take part in the opening of the new fast-food chain, and the rebranding marked a new era in Russia on Sunday last week. The last big mac has finally left Russia.

Govor will pay about 60,000 Russian McDonald`s employees for the next two years, according to the agreement with McDonald`s. In the same agreement, he also agreed to pay suppliers and landlords.

Govor`s company will invest 7 billion rubles ($125 million) into the new business in 2022.

By the way: McDonald`s has the right to buy back its restaurants within 15 years, but «they made it clear to me that they would not buy back», Govor said. Really?

The S&P 500 plummeted -by 3,88% on Monday, but shares of Mcdonald’s outperformed the market, jumped +0,39% and closed «only» $32 below its 52-week high at $271,15.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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If the US continues to go down the wrong path, there will be irretrievable consequences for the China-US relations and the US will have to pay an unbearable price

The Russia-Ukraine conflict is very similar to the Chinese-Taiwan conflict. NATO and the EU in Ukraine are a big threat to Russia. The same can be said about Taiwan. NATO in Taiwan will be a threat to China. So, this is the next big problem for the United States.

The tension is rising, and China is building up its military bases and have 14 warplanes in Taiwan`s air-defense zone.

President Biden said yesterday in a speech in Tokyo that he vows to intervene militarily if China invades Taiwan. «We have a commitment to do that,» Biden said. But that is not an official U.S policy. Is Biden trying to change U.S policy?

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The U.S officials walked back Biden`s comments quite quickly and said this after his speech: «As the President said, our policy has not changed. He reiterated our One China policy and our commitment to peace and stability across the Taiwan Strait. He also reiterated our commitment under the Taiwan Relations Act to provide Taiwan with the military means to defend itself.»

The Taiwan Relations Act obligates the U.S to enable Taiwan to maintain a sufficient self-defense capability, and maintain the capacity of the U.S to resist any resort to force. But despite U.S weapons sales to Taiwan, the U.S has been ambiguous about whether it would intervene militarily, and the U.S acknowledges that all Chinese on both sides of the Taiwan Strait maintain that there is one China, and Taiwan is a part of China, as Biden reiterated yesterday.

In a speech in Japan yesterday, president Biden said; «We agree with the one-China policy. We have signed on to it and all the attendant agreements are made from there. But the idea that it can be taken by force, will dislocate the entire region and be another action similar to what happened in Ukraine. And so it`s a burden that is even stronger.»

China`s reaction to President Biden`s comments on Taiwan came very quickly: «China will take firm actions to safeguard its sovereignty and security interests. We mean what we say.»

What China wants is reunification. So, China is right now threatening Taiwan militarily.

The U.S policy dates back to December 15, 1978, when Jimmy Carter restored relations with Beijing and ended formal ties with Taipei (capital of Taiwan). Taiwan is a big chip-maker, and National Security Adviser Jake Sullivan said intense economic talks with Taiwan will take place in the weeks to come.

Chinese Foreign Ministry Spokesman, Wang Wenbin said this yesterday:

«The US has been racking its brains to play with words when it comes to the one-China principle. I want to remind the US side that no forces, the US included, can hold back the Chinese people’s endeavor to reunify the nation. Also, no forces, the US included, can change the fate of the “Taiwan independence” forces who are doomed to fail. 

Reneging on its promise on the Taiwan question, the US has obscured and hollowed out the one-China principle, and publicly or stealthily incited and endorsed “Taiwan independence” separatist activities. If the US continues to go down the wrong path, there will be irretrievable consequences for the China-US relations and the US will have to pay unbearable price.

Our stern warning to the US: There is but one China in the world, Taiwan is part of China’s territory and the government of the People’s Republic of China is the sole legal government representing the whole of China. This is a consensus of the international community and a commitment made by the US to China.

The one-China principle is unshakable, China’s sovereignty and territorial integrity cannot be violated and the red line of avoiding creating “two Chinas” and “one China, one Taiwan” must not be crossed. 

China has full confidence and capability and is fully prepared to firmly stem the “Taiwan independence” separatist activities, foil all external interference and resolutely uphold its sovereignty and territorial integrity. I’d like to advise the US to listen to a well-known Chinese song with these lyrics: “For our friends, we have fine wine. For jackals or wolves, we welcome with shotguns.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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6 million were killed in Ukraine and The Bolsheviks was responsible for the Holodomor

The conflict between Russia and Ukraine is a complex crisis, but the answer lies in history. Who knows that Kiyv once was more powerful than Moscow? It was also a time when Ukraine and America were adversaries.

Neanderthal settlement in Ukraine is also seen in the Moldova archaeological sites (43,000 – 45,000 BC) which includes a dwelling constructed from mammoth bones. The territory is also considered to be the likely location for the human domestication of the horse.

So, there is no doubt that Ukraine is something special. But what is it? Alexandr Solzhenitsyn criticized the Allies for not opening a new front against Nazi Germany in the west earlier in World War II. This resulted in Soviet domination and control of the nations of Eastern Europe.

Solzhenitsyn claimed the Western democracies apparently cared little about how many died in the East, as long as they could end the war quickly and painlessly for themselves in the West. In 1978, he called the United States «Dechristianized» and mired boorish consumerism. Wow, that`s a long time ago, and we have the same going on even today.

He also accused the Western news media of left-wing bias (Wow! Really?), of violating the privacy of celebrities, and of filling up the «immortal souls» of their readers with celebrity gossip and other «vain talk».

He also said that the West erred in thinking that the whole world should embrace this as a model. While faulting Soviet society for rejecting basic human rights and the rule of law, he also critiqued the West for being too legalistic.

«A society which is based on the letter of the law and never reaches any higher is taking very scarce advantage of the high level of human possibilities.»

Solzhenitsyn also argued that the West erred in «denying (Russian culture`s) autonomous character and therefore never understood it».

Solzhenitsyn was also critical of NATO`s eastward expansion towards Russia`s borders. In 2006, Solzhenitsyn accused NATO of trying to bring Russia under its control; he claimed this was visible because of its «ideological support for the «color revolutions» and the paradoxical forcing of North Atlantic interests on Central Asia».

(Worldwide media use the term color revolution to describe various protest movements and accompanying attempted or successful change of governments that took place in several countries such as former Soviet Union. Russia, China, and Vietnam share the view that color revolutions are the «product of machinations by the U.S and other Western powers» and pose a vital threat to their public and national security).

In a 2006 interview with Der Spiegel, he stated «This was especially painful in the case of Ukraine, a country whose closeness to Russia is defined by literally millions of family ties among our peoples, relatives living on different sides of the national border. At one fell stroke, these families could be torn apart by a new dividing line, the border of a military bloc.»

He gave a speech in Washington D.C, on 30 June 1975 in which he mentioned how the system created by the Bolsheviks in 1917 caused dozens of problems in the Soviet Union. He described how this system was responsible for the Holodomor.

It was a system that, in time of peace, artificially created a famine, causing 6 million people to die in Ukraine in 1932 and 1933. He added: «they died on the very edge of Europe. And Europe didn`t even notice it. The world didn`t even notice it! 6 million people»

In 2008, he said that, while the famine in Ukraine was both artificial and caused by the state, it was no different than the Russian famine of 1921. he expressed the belief that both famines were caused by the systematic armed robbery of the harvests from both Russian and Ukrainian peasants by Bolshevik units, which were under orders from the Politburo to bring back food for the starving urban population centers while refusing for ideological reasons to permit any private sale of food supplies in the cities or to give any payment to the peasants in return for the food that was seized.

Solzhenitsyn further alleged that the theory that the Holodomor was a genocide that only victimized the Ukrainian people was created decades later by believers in an anti-Russian form of extreme Ukrainian nationalism.

He also cautioned that the ultranationalist’s claims risked being accepted without question in the West due to widespread ignorance and misunderstanding thereof both Russian and Ukrainian history.

The Holodomor means; «to kill by starvation».

It is also known as the Terror-famine, or the Great Famine, which was a famine in Soviet Ukraine from 1932 to 1933 that killed millions of Ukrainians. The term Holodomor emphasizes the famine`s man-made and allegedly intentional aspects such as rejection of outside aid, confiscation of all household foodstuffs, and restriction of population movement.

As part of the wider Soviet famine which affected the major grain-producing areas of the country, millions of inhabitants of Ukraine, the majority of whom were ethnic Ukrainians, died of starvation in a peacetime catastrophe unprecedented in the history of Ukraine.

Since 2006, the Holodomor has been recognized by Ukraine and 15 other countries as a genocide of the Ukrainian people carried out by the Soviet government.

Whether the Holodomor was genocide is still the subject of academic debate, as are the causes of the famine and intentionality of the deaths. Some scholars believe that the famine was planned by Joseph Stalin to eliminate a Ukrainian independence movement. Others suggest that the man-made famine was a consequence of Soviet industrialization.

According to Elazar Barkan, Elizabeth A. Cole, and Kai Stuve, there is a competition among victims in constructing a «Ukrainian Holocaust», stating that since the 1990`s Holodomor has been adopted by anti-communists due to its similarity to the Holocaust in an attempt to promote the narrative that the Soviet Communists killed 10 million Ukrainians, while the Nazis only killed 6 million Jews.

They stated that Holodomor was «introduced and popularized by the Ukrainian diaspora in North America before Ukraine became independent» and that «the term «Holocaust» is not explained at all.»

According to them, this has been used to create a «victimized national narrative» and «compete with the Jewish narrative in order to obscure the «dark sides» of Ukraine`s national history and to counter accusations that their fathers collaborated with the Germans.

Holodomor translated from Ukrainian means «death by hunger», «killing by hunger», «killing by starvation», or sometimes «murder by hunger or starvation.»

It is a compound of the Ukrainian holod, «hunger», and mor, «plague». The expression moryty holodom means «to inflict death by hunger.»

The Ukrainian verb moryty means «to poison, to drive to exhaustion, or to torment.» The perfective form of moryty is zamoity, «kill or drive to death by hunger, exhausting work.»

In English, the Holodomor has also been referred to as the artificial famine, famine-genocide, terror famine, and terror-genocide.

Holodomor is now an entry in the modern, two-volume dictionary of the Ukrainian language, published in 2004, described as «artificial by hunger, organized on a vast scale by a criminal regime against a country`s population.

On 24 February, EU leaders met at a special summit convened following Russia`s aggression against Ukraine. They agreed on further sanctions against Russia that target; the financial sector, the energy, and transport sectors, dual-use goods, export control and export financing, visa policy, and additional sanctions against Russian individuals.

Like Trudeau in Canada, the EU will freeze Russian assets and probably cut off SWIFT for now.

There is no doubt that ordinary innocent people will be attacked and suffer, and in the long run, we`re talking about starvation. Or «killing by starvation.» Is this Holodomor 2,0?

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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China`s digital currency dominance

China`s new digital currency e-yuan is a big threat to the US dollar. E-yuan is expected to give China`s government vast new tools to monitor both its economy and its people. This is not only about the CCP`s ability to control China`s economy but also about their increasing global power, and it`s long running battle with the US dollar.

China has long said they are in war on Bitcoin. What some people don`t like is that Bitcoin is decentralized, but China`s digital currency is controlled by the CCP. In other words; the CCP can see everything you are doing with it.

Nearly 90% of foreign-exchange transactions involve dollars and more than 60% of all global central-bank reserves are held in dollar-denominated assets, and that gives the US tremendous power. But China doesn`t like that at all.

Photo by David McBee on Pexels.com

This is obviously a US security issue, but it doesn`t look like the Biden administration care much about right now. But they should, and that very fast if you ask me. The US often use sanctions on other countries, but now China can use their digital currency as a weapon on the US.

The communist China are pushing the IMF to the SDR (special drawing rights) issue. The currency value of the SDR is determined by summing the values in U.S dollars, based on market exchange rates, of a basket of major currencies.

The IMF`s SDR, the international reserve asset created in 1969 to prepare for a new dollar crisis, is undergoing a renaissance, with important worldwide repercussions. The announcement of by far the largest-ever increase in SDR allocations, which will greatly improve the liquidity of many developing nations, signals alignment between the US and China in a key area of global monetary power.

The US now agrees with using the IMF`s balance sheet to boost world liquidity. They are planning to more than triple SDR allocations by at least $500bn. This reflects a change in US policy to back measures strongly advocated last year by China as well as leading European and African countries.

Rich nations with large reserves will distribute part of their plentiful SDR stocks to poor countries.

The massive increase in SDR reserves, which can be converted into its five constituents; the dollar (42%), euro (31%), renminbi (11%), yen (8%) and sterling (8%) will indirectly boosts the Chiniese currency`s international reserve role, according to OMFIF (Official Monetary and Financial Institutions Forum).

In 2009, the United Nations suggested a new SDR-based global reserve system, feasible non-inflationary, and easily implemented, including in ways which mitigate the difficulties caused by asymmetric adjustment between surplus and deficit countries.

That same year, Zhou Xiaochuan, governor of the People`s Bank of China, proposed that the SDR could become the pivotal internationall reserve currency, disconnected from individual nations, as the light in the tunnel for the reform of the international monetary system.

Is this how they`re gonna reset the international monetary system?

To contact the author: post@shinybull.com

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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