I don’t think that’s feasible because China’s capital markets aren’t secure for foreign investors and never will be unless China changes the very thing that they want to be. They’d have to open their markets, be open to direct foreign investment, no more China-only ownership of companies, and no more artificial devaluation of the Yuan.

Also the US capital market is huge. Surprisingly huge, even, and there is very little that can change that for the foreseeable future.

>China is intentionally undermining the dollar in order to try to make the Yuan the world currency

The constant devaluation makes it unappealing.

> My current hypothesis is that the growth in the _price_ of the US Stock market (eg S&P 500) is actually devaluation of the dollar.

I generally agree. But economic orthodoxy says 'Inflation is only 2%', despite precovid, it seemed more like 4%.

> Compared to real money (Gold) the S&P500 is down over the past 10 years.

Speculation can always drive the price of gold way up past its real value.

> Compared to real money (Gold) the S&P500 is down over the past 10 years. [4]

There's such large fluctuations though, especially compared to the S&P 500 in USD [5] or even TFA's USD shares of FX reserves.

[5] https://www.macrotrends.net/2324/sp-500-historical-chart-dat...

Yes, the S&P rose only 4% last year for EUR investors.

> My current hypothesis is that the growth in the _price_ of the US Stock market (eg S&P 500) is actually devaluation of the dollar.

You mean devaluation is causing the growth of SP500, or the other way around?

I keep wondering what would happen if China and the EU came together and agreed to move all trade to the Euro as a pushback of all the current insanity. I don't think the Yuan can ever be the global trade currency given China's current structure.

I don't think China is forcing the US president to do crazy stuff every day

Yes. They are playing chess while the US is playing "shoot yourself in the dick".

Gold is not "real money", come on.