February 18, 2026
Currency wars, comment-section scars
Dear Comrade Xi
Can China’s money rule the world? The comments say: not without drama
TLDR: The article says the Chinese yuan becoming a global reserve would require open, low‑control money flows—politically unlikely. Comments split between the Triffin Dilemma crowd and the “power can force tribute” camp, with a side debate over whether foreign investors must be allowed to short Chinese banks.
The article basically tells Xi: if you want the Chinese yuan (RMB) to be global money, you’ll need humility and an open, low‑friction system—then bluntly adds, that’s “politically impossible.” Cue the comments turning the finance lecture into a cage match. One camp, led by andsoitis, dropped the classic Triffin Dilemma—you can’t be the world’s go‑to money while keeping a trade surplus—linking reserve power to supplying the world with liquidity (what’s that?). Another camp fired back hard: advisedwang called the plan “western economic theory”, arguing empires can make people pay tribute in their currency. Translation: who needs trust when you’ve got power? Meanwhile, andrewflnr zoomed into the weeds with a surprisingly relatable point: do foreigners really need to be able to short Chinese banks to make markets honest? If locals can do it, won’t prices still find the truth? The crowd loved the article’s “money as minimum work” line—memes about the coffee‑to‑gasoline trust chain popped up, with jokes like “money is whatever gets me espresso fastest.” But the mood split: half the thread cheered the New York–London playbook of open networks; the other half said RMB dominance could be forced, not invited. High drama, low chill, maximum currency wars energy.
Key Points
- •The article argues RMB reserve status would require changes that are conceptually clear but politically infeasible for China.
- •Reserve currency status is presented as a network effect supported by a chain of trust across transactions.
- •Monetary systems can experience runs and phase shifts under stress; the Lehman Brothers failure exemplified such fragility.
- •A fourth monetary criterion—minimum viable work to settle debts—is introduced, favoring systems with lower transaction friction.
- •Reserve currencies require allowing currency circulation outside direct control; the eurodollar system and global financial hubs demonstrate this diffusion.