Talking about de-dollarisation, of course it will not be
an overnight change. Many are arguing that the US$ hegemony cannot be
taken down. Neither was the rise of China ever envisaged. It is good
that they do not take BRICS creation of a reserve currency as a serious
contender, the way they were blindsided by China's rise, betting on
plain arrogance. Let us see. It also took time for the US$ to replace
the domination of the Pound Sterling.
The fact that the US$ as a
global currency foreign exchange reserve has been declining from about
72% in 2001 to the present 58% in a space of about two decades is
significant. What is unpredictable is how fast is the fall going to be
more going forward, with some big countries now doing big trades outside
the US$ and using their own currencies. They do not need to hold as
much US$ as in the past.
The USA can continue to print fiat
money, but who is going to buy up their debts? Japan is itself in
trouble, having sold off huge amounts of treasuries. So does China and
many other countries. Just let the Anglo Saxon countries do the
supporting as they do not mind suffering the risk and are willing to go
into the sewers supporting the USA.
What BRICS's countries could
do is just continue chipping away with the creation of an alternative
reserve currency, supported by gold or tangible commodities and a
settlement system to rival SWIFT. The idea here is 'alternative' not a
replacement reserve currency for the US$ in the shorter term, that the
Global South could make use of for trade. When it works, it will
definitely take off, and countries will be able to avoid the sanctions
game.
Anonymous
George Yeo says recently that the exorbitant privilege of a global reserve dollar enjoyed by the US allows the Americans to maintain more than 750 military bases in at least 80 countries.
ReplyDeleteDe-dollarization is the way to go to defang the US.
Hi Anon 8.57
ReplyDeleteJust simply printing fiat monies like nobody's business sure can have even one thousand bases of gangsters to extort protection monies and threats.
Also can go round offering bribes of millions to puppets under their balls.
Anyone with this no one dared to accuse them can also do the same.
The Daft daft world just kept silent on this practice and also had their Gold in their vaults stolen and cannot be accounted for and return.
The blood debt US-ally Japan owes China that Chinese people will not forget. This video records many horrific scenes when Japanese militants killed over 300,000 Chinese people after capturing the city of Nanjing.
ReplyDeletehttps://twitter.com/i/status/1691476963532439552
The barbaric Japanese massacred millions of Chinese in WW2 and got the cheek to accuse China as a threat to them.
ReplyDeleteAnd after being nuked by the Americans with many major cities being flattened by the Americans, including Tokyo, Kyoto and Osaka, they still called China a threat, not the Americans. Maybe because the American bases are all over Japan and they have no choice but to pretend America is not a threat to Japan's freedom as a nation state. Or as a colony, the Americans have already occupied their homeland, so no need to say anything, cannot say so.
The American is not a threat, but a reality sitting on their heads.
The USA knows the Japanese still harbour their paranoia about Chinese revenge for what they did to China during WW2. That is the hold that the USA had over the Japs, who are hinging on the USA protection and support in the event of a conflict with China.
ReplyDeleteOver in Asia, Japan is isolated, though never talked about openly out of diplomacy, not respect. Even Russia's distrust of Japan is historical.
China's De-Dollarization Accelerates as Its US Treasury Holdings Tumbles to 14-Year Low
ReplyDeleteChina's holdings of U.S. Treasury securities fell to US$835.4 billion in June - its lowest since May 2009 - from US$846.7 billion the previous month, according to latest data released by the U.S. Department of the Treasury.
The data came ahead of the upcoming BRICS 2023 summit scheduled to be held in South Africa from August 22 to 24.
BRICS, an emerging-market group that includes Brazil, Russia, India, China and South Africa, renders a powerful force in propelling the de-dollarization process.
The BRICS members have been striving to settle more trade in their own currencies over recent years as part of broader efforts to gain economic clout and counterbalance the hegemony of the US dollar.
Singapore's inventory of U.S. Treasury debt dropped US$15.1 billion to an 8-month low of US$187.1 billion in June, from US$202.3 billion in May, as concerns prevail over the US' ability to repay its ever-ballooning national debt, which has already mushroomed alarmingly to nearly US$33 trillion.
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If Singapore loses $40b a year, in less than 5 years, all will be wiped out.
ReplyDeleteLooking at the data of countries still buying treasuries, it certainly is no surprise that most are Anglo Saxon countries and allies like Japan.
ReplyDeleteOthers in the Global South are generally selling, like India, Brazil, Hong Kong, Saudi Arabia, Mexico, UAE, and Singapore, with China among the biggest sellers.