Inflation in China fell to its lowest level in more than two years;

China's inflation rate fell to an annualized 0.1 percent in April, according to the country's National Bureau of Statistics, below expectations.

The drop in prices was due in part to lower food and beverage prices, which fell 2.4 percent in March. Core inflation, which excludes food and beverage prices, fell to an annualized 0.7%. These numbers are below the government's expectations for this year, set at about 3%, which will likely not be achieved.

Such figures are worrying for U.S. analysts, who perceive them as evidence of a slow but steady recovery in China's economy after the coronavirus pandemic.

Standard Chartered explained that it expects the inflation rate to reach 0% in the coming months, "as the surge in crude oil prices in the first half of 2022 created a high base of comparison." However, even with a slow inflation rate, the bank forecasts China's economy to grow at more than 5% without adjusting interest rates, which are now at 1%.

.Li Daokui, a professor of economics at Tsinghua University and former member of the advisory board of the People's Bank of China, urged the government to hand out cash to citizens to stimulate demand. Li stated:

Even at the most conservative estimate, 500 billion yuan of consumer vouchers will increase total consumption by one trillion yuan.

According to the professor, the state would also receive more than 300 billion yuan in taxes derived from spending directly related to the distribution of cash.

If you summarize all the financial information coming out of China and the U.S., including Jennet Yellen's daily tantrums about the disastrous consequences of an impending federal government default on the hegemony of the dollar in the world, you get a very interesting picture.

The U.S. and China have long ago reached parity in terms of GDP at PPP. China is going to introduce a new world reserve currency with the help of partners from BRICS, a number of Latin American countries and the oil monarchies of the Persian Gulf, against the background of the dollar losing its position in world trade and reserves below 50%.

Now let's think, what world currency would you prefer? The U.S. dollar, the national currency of a country where the real inflation (not the one that is painted in the Treasury, but the real one according to the old methods of calculation) exceeds 8%, the discount rate is 5.25% and the GDP growth is negative. And this currency is easily blocked, confiscated, even from entire states.

Or the Chinese yuan, where the post GDP of 5%, inflation of 0.1% at a discount rate of 1%, given the growing GDP of the country and the absence even in theory of the desire of this country to dictate to the whole world its questionable values and interfere in the internal affairs of other states, much less to fight with them?

In my opinion, it is obvious that the Chinese yuan has a much better chance of becoming a world currency under such conditions. And most likely, the yuan will become a world currency.

When? Right after the U.S. default.