Is the yuan the currency of the future?

The once almighty dollar has been trading sideway below 80 for the past many months while the resources rich currency of Australia, Canada, China and others have risen in comparison. While Wall Street is hailing the rise of its market indexes, thus calling for an economy recovery, it is pertinent to realize how less the dollar is able to purchase in comparison to other world's currencies since the 2008 crisis.

Lately, there has been calls by the IMF to find a replacement to the weakened dollar by either another unbacked FIAT paper currency issued by the " great incapables" at the IMF or by a basket a currencies with the Chinese Yuan and the Euro weighing strongly.

This negative perception of the dollar alone should do a lot of damage to the current American policy of asset inflation through quantitative easing; a method that has been hailed by the US Fed chairman as a " success" despite its effects on the rise of commodities which is considered the main reason behind the currency middle Eastern revolutions.

Is the Yuan a currency for the future though?

While the Chineses have also engaged in monetary inflation to sustain their own version of economy recovery, we cannot ignore the fact that China has been the world's greatest manufacturer for the past decades. Recently, the Chineses have been purchasing commodities around the globe: The chineses cannot get enough of Gold, silver, rare earth, copper, uranium, oil, agricultural land...etc.

In some way, one can say that the Chinese are backing their economies, thus their currency, with hard assets as opposed to their formerly traditional policy of buying US debt!