The dollar is still flying high and in demand for trade and as a hedge against inflation outside the BRICS world. Many nation states and big banks are still holding on to dollars, buying American bonds and treasuries to protect themselves...but in decreasing amount. Dollar holding for big banks as a safe bet has decline from 75% to 58%. It is good for the moment, when the dollar is still being accepted for trade and business, when they can use the dollar to buy American goods and also goods from other countries.
What would happen to the dollar when it is no longer accepted for trade and business? BRICS and the Global South are de dollarising, ditching the dollar. Every day, more and more countries are trading with their own countries instead of the dollar. The need and importance of the dollar will diminish with time. Eventually, a day will come, when countries would not want to accept the dollar, when there is no demand for the dollar, when no one would want to buy American goods that are expensive and no better than other alternatives?
The Americans are still furiously printing the dollar, and the American debt is ballooning to over $35 trillion. The supply and demand equation will come into play and the value of the dollar must depreciate and even becomes worthless. This is the same reasoning as the prices of HDB flats. When the time comes, when the lease expires, its values must be zero. When there is an abundance of dollars, when the BRICS and the Global South no longer need the dollar, its fate will be sealed.
The day when the dollar would turn into banana currency or monopoly money is approaching and would be a reality. It is an unavoidable and inevitable nightmare waiting to happen. The dumping of the dollar is progressing with increasing intensity by the day. Run for safety while you can.
America's free ride on the rest of the world, exchanging toilet papers for real goods and services, must come to an end. The people of the world are not that stupid, and will not be stupid forever.
PS. The recent surge of the dollar is like injecting it with steroids. The Americans are manipulating its rise, forcing its allies and cronies to buy the dollar, to buy treasuries and bonds. This is like a flash in the pan. It cannot last when its value is based on fake demands. It is like the last burst before it collapses, like surging stock market to a new peak before a plunge. 1930s Depression is the next big event.
The avalanche of de dollarisation has started crashing down.
4 comments:
Take heed, for your own financial security discard the US dollars. Convert some of your savings into the Chinese Yuan or Ren Min Pi. Play safe and be happy.
Southernglory1
When the US$ turns into banana notes, there will still be monkeys wanting it. Monkeys love bananas, right? The USA and the West will just keep dangling banana notes on banana trees and the monkeys will jump up and down reaching for it.
But when the banana tree falls, the monkeys will disperse, chattering yak, yak, yak, yak.....
Too late the hero!
Notice how easily people got scammed even today. In 1973, 60 years ago, the whole world was easily scammed by pricing oil in US$, which created the US$ hegemony. The Saudis are responsible and complicit in the whole scam.
Post a Comment