The mighty US dollar was what every country was craving for. It was the safest and dependable reserve currency for the world. Practically every country would hold on to some US dollar in their national reserves. International trade was all done in the dollar. Many countries work their guts out to sell their products and services to the US in exchange for the dollar. The US was in such an enviable position, to print toilet paper into money to buy everything they need for their own pleasure.
China's economy was in a big way anchored to the US economy and the dollar. The Chinese work tirelessly for the last few decades to send their products to the US for the dollar. They amassed trillions of US dollar, even converted a big sum into US T bills for safe keeping and to earn interest.
Every country grudgingly put up with the dollar as the world's reserve currency when there was no alternative available. But things took a dramatic change when the Americans abused this privilege and weaponised the dollar to bring down their enemy countries through sanctions and ransom of the international financial system. The urgency to look for an alternative to the dollar gains speed and traction. Within months, the whole picture of the dollar as the reserve currency changed.
Dedollarisation is now the top game being played by the international community. The dollar is no longer the only means for international trade. The implications are pervasive and far reaching. Before the straw broke the camel's back, China was carefully working to by pass the trade wars and sanctions imposed by the Americans. It moved many of its low end industries overseas, to Asean, esp Vietnam, Indonesia, Africa and Latin America. The branded shoes and apparel factories popped up everywhere, making the same shoes and whatever, to sell to America. China still make the money as well as the countries where their factories have been relocated. All earning American dollar.
This is going to change when the value of the dollar plummaged. What is the point of earning dollar when it is no longer a safe currency, when its value is falling everyday? What is the point of earning dollar when it is not going to be accepted as an international currency? It has not reach this point yet. What if, the dollar becomes like the Argentinian or Venezeulan currencies, when it becomes a banana currency? When this day comes, China nor any country would still want to sell to the American market in exchange for the dollar that is worth nothing but toilet papers. And when no one wants to sell to the Americans, you can imagine what the scenario would be, a hamburger costing $200 today and $400 tomorrow, and eventually there will be dollars everywhere, like banana currency. Have dollars but worth nothing and can buy nothing. The shelves of Walmart stores would be empty.
Every country would be turning to China to sell their goods and services for Yuan or BRICS currency instead of the US. 1.4b middle class Chinese would absorb the products and services from the rest of the world. There will be no American tourists as their dollars not wanted and not usable. By then the Yuan and BRICS currency would earn their place as the most trusted and safest international currency for trade and savings, as national reserves. Whither the dollar when the trust and confidence is lost, when it is not backed up by anything, but just a piece of toilet paper.
And no more sanctions when every country is not using American dollar.
When would this day come, the day of reckoning for the evil American Empire, for bullying the rest of the world, for cheating on the world, for abusing the dollar, for abusive the trust of the people of the world, for lying to the world and for creating all the wars in the world? It would be very soon and surprise everyone. The Americans still telling each other that China has a lot of problems and the US has no problems, at home or abroad. What a blessed country, America!
27 comments:
China must stop all delusion that the US will observe the One China Policy with the meeting between McCarthy and Tsai. China must be resolute now and stop cooperating with the Americans and must not be silly enough to want to help the US in the dollar and debt crisis.
Let the US plunge into the abyss under the weight of their own problems. And start taking positive steps to take back Taiwan before it is too late. Close up Taiwan now, do not allow Tsai and her delegation to return to Taiwan.
"It would be very soon and surprise everyone."
All my fellow retirees are pleasantly surprised and hope to see it happen in our lifetime. We will consider a trip to Europe if the euro drops by 30% but definitely not the USA even if the USd dives by 50% or more.
"China has a lot of problems and the US has no problems,.."
Many retirees will be happy to sponsor a One way ticket for pro American hongkees and taiwanese from DPP to the USA, of course after officially giving up their respective citizenships.
At least 64 countries have joined the dedollarisation camp, including Israel, Britain, France, Japan, Switzerland.
Rubio’s ‘sanction inability’ theory rings funeral bell for US dollar hegemony
In a video gone viral, US Senator Marco Rubio lamented the decline of US dollar hegemony and said "there'll be so many countries transacting in currencies other than the dollar that we won't have the ability to sanction them." At present, with the US' irresponsible monetary policy, especially continuous interest rate hikes, anger and dissatisfaction toward US dollar hegemony have been accumulating. With that as a backdrop, the "sanction inability" theory hyped by Rubio may add fuel to that fire.
For a long time, the US' abuse of its dollar hegemony has been considered a factor pressuring the world economy, but when more countries, especially developing ones, are suffering from US hegemony and paying for its irresponsible monetary policies, it's ironic that some US politicians are only interested in whether the US stands to lose its ability to impose unreasonable unilateral sanctions and coercive measures. This reflects US political elites' habitual hegemonic thinking about the world economy.
In the past, the US established dollar hegemony to keep global finance and currency circulation under its control, but so many years have passed, the US-centered financial system has no longer adapted to the new patterns of global economic development. Although there is no need to deny US dollar will remain the most frequently used currency in the foreseeable future, it should be acknowledged that a global trend toward de-dollarization has already begun. Some within the US political elite are panicked by the possible collapse of US financial hegemony. As they want to disrupt and create obstacles for the trend of currency diversification, they could desperately do anything. In this process, it won't be surprising for them to utter radical remarks, or hype up extreme rhetoric, but such proposition reflects nothing but their inner panic and fear.
Now, as the US' irresponsible monetary policy and the resulting strong dollar become a hazard for global economy, economies across the world have realized the urgency of de-dollarization. China's yuan and some other currencies that have a stable value have become an ideal currency for diversification away from the dollar. In March, media reports noted that China and Brazil had reached a deal to allow the two countries to carry out trade and financial transactions directly in the Chinese yuan or the Brazilian reais, instead of using the US dollar as an intermediary. Rubio has warned that these countries are creating a parallel economy completely independent of the US. His words, to some extent, reflects panic of US political elites to the current trend of de-dollarization and currency diversification, but it should be pointed out that it is not China, Brazil or any other country, but the US itself that sets off the inevitable trend of de-dollarization, partly thanks to the US' irresponsible monetary policy.
US dollar hegemony comes from the US' position as a critical global economic power and the country's political and economic stability. If the country wants to rebuild global confidence in the US dollar, it should instill more positive factors in the global economy. At the very least, the US should maintain a stable value of its currency and adopt a responsible monetary policy. However, it is regrettable to see the US is traveling in the opposite direction. Apart from the irresponsible monetary policy that has caused havoc around the world, the US has also been increasingly weaponizing US dollar hegemony to impose economic sanctions and create financial volatility at the expense of global economy.
No one wants to live under the threat of US sanctions. Rubio's "sanction inability" theory has once again highlighted the urgency for countries around the world to cut their reliance on the US dollar, as it adds to the evidence that the US is unlikely to stop its steps in weaponizing US dollar hegemony.
[ Global Times ]
Hi Anon 8.38
Should be the video of three gangsters Americunts poilcemen assaulting and kicking a chinese woman laying on the floor just what's they did to that Negro that died.
Knees on her head and the rest kicking and punching her.
Only insane ones will want to visit their Shits Country with their Subways worse than India's Slums.
Virgo, just put up the video you mentioned.
The fucking racist American police are a shame to humanity. See how they bullied and bashed up a small Chinese women with so much force and hate.
Everything has a beginning and an end. It could be due to mismanagement, misuse, or due to arrogance, which eventually will lead to the stage that nothing can stop the crash into ignominy.
Even Empires like the British, spanning more than half the globe, came to a sad end. 'Britannia ruled the waves' was what they touted. Now Little Britain could not even have a White man, good or capable enough, to rule over them. They can continue to sing 'God save the King' ruling over a little island, and posturing and pretending they are still an empire. Likely they need God to save the 'Fisher King' guarding the Holy Grail, the last island left in the Empire?
The illusion of perpetual hegemony, with military might giving it protection, and backing it with oil instead of gold did not work either. USA is not the only major oil producer calling all the shots. Now OPEC+ is slowly ditching the pricing of oil in US$, and that means countries do not need to keep vast amounts of US$ to buy oil. Countries are now able to do it in their own currencies, Ruble or Yuan. That is just the first step. Getting right the settlement system as an alternative to SWIFT is the next move being explored by the BRICS. That will start the real tsunami of de-dollarisation. It will take time, no doubt about that.
Janet Yellen's on the spur of the moment suggestion, to have an oil price cap against Russia, plucked from the air, is not even expected to work from the start, and crude oil prices have now moved far above the cap. And Europe in particular is having to buy Russian oil, under cover, far above the cap price of US$60, but still undoubtedly paying cheaper prices than buying from the USA. India, China, Saudi Arabia and OPEC+ are laughing all the way to the banks, making a killing and helping Russia overcome the energy sanctions imposed by the EU and USA. That, by the way is 'weaponisation' of oil to counter the 'weaponisation of US$ hegemony'.
That the West is now accusing China of helping Russia financically is plain horseshit. China can buy cheaper oil from Russia, which are highly discounted, and very much cheaper, and that is basically taking care of its own interest, the same with every country. Why are they not accusing India or the Saudis doing exactly the same thing? Are they not helping Russia in like fashion? The USA can no longer dictate. The more it tries, the more it will accelerate the de-dollarisation move by the rest of the Global South.
On a closing note, can we say that Russia is really isolated as they tried to propagate and pretend at the start of the Ukraine War? Now the USA is trying to flog a dead horse by claiming that Taiwan is not being isloated. Really? Losing recognition from nine countries since 2016 to China after Tsai became President is not material? Denial can never do its work, when reality hits!
With an Indian PM in charge of Britain, they really must sing God Save the King loudly and praying hard on it.
Yellen thought they are still in control of OPEC and could tell OPEC how much oil to produce and what price to sell. OPEC is showing the Americans the middle finger.
OPEC would now determine their price and how much they would pump out daily to sell. They would not allow the Americans to control and dictate to them anymore.
Don't be so happy about the impending USD collapse:
The high-speed de-dollarization in global trade will make it impossible for the US Govt to raise enough debt to function.
The US military becomes unaffordable. It will have to be used for a major conflict now or never.
The de dollarisation is about the Great Reset and the changing of the Guards.
It will create a lot of uncertainties and dangers and many pains before a new equilibrium sets in.
Threats of wars and wars would be on the cards.
China and Russia coming together is also propagated by Western analyst that it is not for the long term. So be it. The main objective is getting rid of the US$ hegemony. And only Russia and China working together can provide the world with that opportunity. That is good enough.
Whether war will come sooner or later, getting rid of the US$ hegemony is everybody's wish come true. It is still better than living under the yoke of tyranny, not knowing when it will end. For decades after WW2, the USA had been provoking wars all over the world, even without talking about de-dollarisation, and it can never change.
There will be uncertainties for sure with de-dollarisation, but it is definitely for the better for mankind in the long run. Only those that supports the Evil Empire and wants to be under the rule of tyranny will be happy and wants the status quo to remain. And there are many to be named.
Trump warns dollar to be displaced as number one world currency over Biden’s policy
The dollar may no longer be the number one world currency soon due to the policy of US President Joe Biden’s administration, former President of the United States Donald Trump wrote on his social network Truth Social on Thursday.
"China is trying to displace the US dollar as the number one currency throughout the world. Unthinkable three years ago! If this happens, and under Biden’s leadership it probably will, this would be the biggest defeat for our country in its history. We will be reduced to second tier status," Trump wrote.
Earlier, US economist Nouriel Roubini, who predicted the financial crisis of 2008, did not rule out the eventual demise of the dollar as a reserve currency within a decade. Ray Dali, Founder, Co-Chairman and Co-Chief Investment Officer of Bridgewater Associates, expressed a similar view, saying that the era of the dollar-dominated global order and economic globalization is fast disappearing as the world’s major powers are forming their own economic, financial and military blocs.
No one or country can destroy the dollar the way it is being destroyed.
Only the clowns in Washington could do it, and they did not even know what is happening or what they had done. They thought they were making America Great Again.
And they are blaming everyone else for the destruction of the American dollar. It is other people's fault. It is China, it is Russia, now they may even say it is Saudi Arabia...or Trump.
The USA actually destroyed the US$ itself when they weaponised it. It was only with the internet that so many people actually start to realise that the whole world had been giving the USA a free ride, with all the goods they are producing, and having to exchange those goods for toilet papers in order to buy oil and trade with each other. It is nothing short of ridiculous and being treated like fools.
And to add insult to injury, the USA took the US$ from its gold backing initially, used oil instead, and enabling it to keep printing money from thin air and flooding the world with fiat US$ and exporting its inflation worldwide.
The USA even thought it better to export its manufacturing, together with it its pollution, to cheaper countries like China, yet decided later to turn around to accuse China of stealing its jobs and destroying the environment. China never put a knife to Steve Job's neck to set up his iphone assembly in China. He was there to take advantage of the cheap labour to make more money.
China must unwind all its US$ assets in the USA and the West and must not help the USA overcome the current financial crisis and debt crisis. Always remember, helping a snake is putting one in danger of being bitten again and again. It must never be allowed to happen. Enough is enough.
Now the whole lot of the European Stooges of Ursula Undress and that Marconi must go to CHINA and kow tow ah?
Alreday woke up from their Nightmares of been screwed by the Americunts?
Singapore must unwind all its US$ assets in the USA and the West and must not help the USA overcome the current financial crisis and debt crisis. Always remember, helping a snake is putting one in danger of being bitten again and again. It must never be allowed to happen. Enough is enough.
Singapore is currently the world's 14th largest sovereign holder of US Treasury debt, with USD187.6 billion worth as at end of January, 2023 even as many other countries are de-dollarizing.
This is looking like a HDB flat. Keep it for the long term, and it will become zero.
By the time the world replace the dollar, everybody here will be dead. I bet $1. If I lose, I give you my Rolex.
Buy Rolex, my friends. Even used Rolex is ok. This is safer than keeping any US$, Japanese Yen, Aussie $, English pound or Swiss Frand. Btw, Rolex is also Swiss.
https://www.youtube.com/live/Go7vhKxc_9s?feature=share
See this interesting video of Marconi inspecting China's Guards of Honor and kept staring at all the soldiers taller than him.
Even the women. Tasked by Bidamn to see ok or not to fight China.
Marconi reported that he peeed and shited after the inspection.
Don't try he said.
Olaf Scholz did not want Macron to follow him to China earlier, possibly thinking Macron was just trying to keep a close eye on him in his meeting with Chinese leaders. That was a slap on Macron's face.
Now, Ursula von der leyen insisted that she wanted to follow Macron on his visit to China, possibly keeping an eye on what Macron is doing in China for the Evil Empire. After criticising China to no end, what is she expecting from China. A red carpet welcome?
These people talk so much about nudity, oops sorry unity, but they realistically do not trust each other.
If everybody is going to die, what for have a Rolex?
Buy golf or s$
That's right Bro Anon.
CASH in hand is the most Valueable commodity wh en you really needed them.
Dont listen to that Rokexi Guy.
When u needed ready emergency cash and even if.u have Rolex or what's Rex, u still needed to find ways either to pawn them for cash or sell them.
Let me just relate an embrassing episode of my life.
Had loaned a Mat friend till now 60K RM and still not return as yet. Real stupid of me.
Once needed some emergency cash and took my Rolex to many pawnshops hoping just to tide over with some cash.
You know what? Very humilating. They don't even want to accept my watch.
Scan here scan there and look at you like a papuer and shook their damn heads.
Ok maybe mine old model Oyster Date Pepertual but still worth a few thousands bucks at least.
So dont be naive and stupid and spent all your monies on all these so called luxury items like expensive watches and fancy items.
When you needed real hard cash u be running like a mad dog with your useless items to exchange for cash.
Gold bars maybe. Luckily years back when able to use CPF Investments funds to invest in.the UOB gold units at that time low low price and now maybe ten times up with Xi and Putin and the Rest all buying, maybe made a pile now.
So believe me don't buy all these So called fancy stuffs.
Invest in the Real Stuffs of Cash and Gold.
Cheers
Your Rolex probably fake or else you yaya papaya at the pawnshop. Old Rolex nowadays are collectors items and worth a lot of money. Very stupid of you to think we believe you lend a Mat RM 60000 until you have to pawn a Rolex which is then rejected by pawnshop. Try another story.
Aiya Rokexi Guy
Dont be stupid and braggart that you owned lots of Rokexi as pronounced by the Hong Kies.
One fine day when you needed hard cash you be selling them at bottom rock prices.
You dared bring an imitation to a pawn shop to cheat old uncle type of pawnshops?
Yes you might get thru old bosses pawnshops but after that you be at the Changi Resorts eating black oats rice
Nowadays, MaxiCash and Others are ran by youngsters and tattoes guys and they will even with Cyclop Lens made sure that your Rolex is genuine. What's fake you talking?
Many nowadays dont really want to take as surety all these Oyster Datejust and Unjust as now most yuppies preferred Submariners and Submarines.
Mine even good as new 1978 all those Maxi and Mini and Maxim Casinos also don't want.
Just bring one of your also maybe fakes as though you bragged have a few hundreds of them and see whether they accept.
Actually all you braggarts showing off in this blog are just braggats like those also buy and owned designer bags.
All you materialistic and bums thought grand to own all these.
See so many in Maxi Cash for sales. When you neede monies or cannot to pay the credit cards bills also have to sell.
Saw so many at MaxiCash for sales that shown thaylt you all cannot afford to redeem back lah.
So only stupid dafts like you thought high class to own all these luxurious useless items.
When needed cash have to sell or pawn at rock bottom prices.
Humans buyers knew when you wanted to sell, must be desperate and they will offered rock bottom prices.
Nothing like hard cash in hands.
One fine day you will taste what's i said.
Old uncle's advices are thru experiences.
Don't learn at your own perils.
Post a Comment