In any case, the signs are already emerging that the world is not going to continue to buy USA treasuries and provide foreign investments to fund the USA's terrorism adventures. Who is next must be the fundamental question now in their minds.
Most likely, the USA will self-destruct with its unsustainable US$39 trillion debts on top of the hundreds of trillions of derivatives swimming in the books of the too big to fail banks, hedge funds and pension funds. It only needs an ignition point to send the whole house of cards tumbling down.
Anonymous
Most likely, the USA will self-destruct with its unsustainable US$39 trillion debts on top of the hundreds of trillions of derivatives swimming in the books of the too big to fail banks, hedge funds and pension funds. It only needs an ignition point to send the whole house of cards tumbling down.
Anonymous
2 comments:
Weaponization of the US$ provided a means for the USA to punish other countries for a period of time, but the effect is waning as countries found ways to get around those sanctions. Needless to say, no country had ever collapse due to USA sanctions, and sanctioned countries are learning from the experience of those who would not fall. Hyping gloom and doom as a consequence of those sanctions is no more a fear factor to threaten countries today.
De-dollarization must be seen as a godsend as countries can now trade outside the US$ and avoid the sanctions, even as they are asking - who is next. The Iran War is going to see de-dollarization up a notch with Russia and Iran now selling oil in Yuan. This move by Russia and Iran is no small potato, as both are major oil producers. Other Gulf oil producers will in time have to consider accepting Yuan, (if they have not done so already), as a currency for settlement when selling oil to China, the biggest market by far.
I have been watching videos of the changing landscape around the world regarding who is dominating in which sector. There are indeed somewhat of a surprise for me that China has grown to dominate in so many sectors of the global landscape which is fermenting a natural worrying reaction by the USA. China's domination in churning out scientific papers in chemistry, physics, mathematics, engineering and construction, which were the monopoly of the USA before, is now turned on its head. China has dominated the registration of patents (which is about new inventions) and is the top dog in this sector. China has stamped its domination in EVs, drones, shipbuilding and renewable energy harvesting, leaving the rest of the world fighting for runners-up position.
Russia now has oil pipelines to move oil to China, and this is no longer a problem for both countries trying to evade choke points nor sanctions.
If a push comes to a shove, China and Iran too, may find it feasible to have similar pipelines to facilitate the movement of Iranian oil to China. There was already a proposal to build a pipeline from Gwadar Port in Pakistan to Kashgar, China, for Middle East oil, to avoid the Straits of Malacca, but which due to geological constraints, has been mothballed. Those constraints involve building the pipeline across mountainous terrain thousands of meters high. But China is fully capable of building at such heights, such as its high-speed rail construction in freezing conditions and low oxygen environment.
When situations become untenable due to the Middle East war prolonging and for future proofing, killing two birds with one stone may take place, which means constructing the Iran link to connect to the resurrected Gwadar Port line running towards Kashgar, China. This is just my thinking, and I am sure the Chinese are also looking forward as well to such a possibility.
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