Amid fast-growing pressure on the U.S. dollar’s status as the global reserve currency, authorities in the United Kingdom this week successfully issued sovereign bonds denominated in Communist China’s strictly controlled currency known as the yuan or renminbi. It was the first such bond issue in the Western world, and the largest non-Chinese bond ever sold, according to news reports. While the initial scheme was relatively small — worth about US$500 million, contrasted with about US$200 billion in yearly U.K. government borrowing — its implications for the dollar and the international monetary system could be profound in the longer term, analysts said.
The Congressional Budget Office offered no solutions as to how to pay off the burgeoning national debt; it just reports the facts.
There are many lessons to be learned in the International Monetary Fund report claiming China's economy has surpassed that of the United States. First, not every number is to be believed. Second, not all numbers were considered.