[BrianC]

Suddenly Everyone Is Hunting for Alternatives To the US Dollar (bloomberg.com) 81
Posted by msmash on Friday December 30, 2022 @10:00AM from the growing-concern dept.
King Dollar is facing a revolt. Tired of a too-strong and newly weaponized greenback, some of the world's biggest economies are exploring ways to circumvent the US currency. From a report:
Smaller nations, including at least a dozen in Asia, are also experimenting with de-dollarization. And corporates around the world are selling an unprecedented portion of their debt in local currencies, wary of further dollar strength. No one is saying the greenback will be dethroned anytime soon from its reign as the principal medium of exchange. Calls for "peak dollar" have many times proven premature. But not too long ago it was almost unthinkable for countries to explore payment mechanisms that bypassed the US currency or the SWIFT network that underpins the global financial system.

Now, the sheer strength of the dollar, its use under President Joe Biden to enforce sanctions on Russia this year and new technological innovations are together encouraging nations to start chipping away at its hegemony. "This will simply intensify the efforts in Russia and China to try to manage their part of the world economy without the dollar," said Paul Tucker, a former deputy governor of the Bank of England in a Bloomberg podcast. Writing in a newsletter last week, John Mauldin, an investment strategist and president of Millennium Wave Advisors with more than three decades of markets experience said the Biden administration made an error in weaponizing the US dollar and the global payment system. "That will force non-US investors and nations to diversify their holdings outside of the traditional safe haven of the US," said Mauldin.
https://www.bloomberg.com/news/articles ... tion-drive

[BrianC]

free link
https://www.yahoo.com/now/suddenly-ever ... 00587.html

[Tanada]

I don't see this as sudden at all, different nations have been easing off on their commitments for a decade or longer by this point in time.

[Outcast_Searcher]

$this->bbcode_second_pass_quote('Tanada', 'I') don't see this as sudden at all, different nations have been easing off on their commitments for a decade or longer by this point in time.

[ROCKMAN]

Outcast: Yes, more palatable to blame the US then their own economies/gov. LOL

[careinke]

The problem with countries who do try and find an alternative to the U.S. Petrol dollar is:

1. The U.S. will destroy your country through war.
2. Kill the leader of the country.

Not necessarily in that order.

Some examples:

Lebanon, Syria, Iraq, Afghanistan, Yemen, Iran, and Libya.

Peace

[Peak_Yeast]

Sorry for being blind...

[theluckycountry]

$this->bbcode_second_pass_quote('careinke', 'T')he problem with countries who do try and find an alternative to the U.S. Petrol dollar is:

1. The U.S. will destroy your country through war.
2. Kill the leader of the country.

[theluckycountry]

The alternative to the US dollar is a gold backed currency, it's why Russia and China have been buying up every ounce on the planet for nearly 20 years. It was the US gold backed currency that brought stability after WWII, and it worked fine up until 1970 when the reneged on the agreement. That caused the massive inflation of the 70's and the US has been losing ground ever since.

[AdamB]

$this->bbcode_second_pass_quote('theluckycountry', 'T')he alternative to the US dollar is a gold backed currency, it's why Russia and China have been buying up every ounce on the planet for nearly 20 years. It was the US gold backed currency that brought stability after WWII, and it worked fine up until 1970 when the reneged on the agreement. That caused the massive inflation of the 70's and the US has been losing ground ever since.

[AdamB]

As the world moves away from the U.S. dollar as a world reserve asset, dollars will be dumped globally, causing a “tsunami of inflation” in the United States as the currency returns to American shores. Interest rates will rise accordingly, followed by a “collapse” in asset prices, which would be used to usher in Central Bank Digital Currencies (CBDCs) and The Great Reset.

As the world moves away from the U.S. dollar as a world reserve asset, dollars will be dumped globally,

[theluckycountry]

China And Brazil Strike Deal To Ditch The US Dollar

$this->bbcode_second_pass_quote('', 'A')ccording to the Brazilian government, China and Brazil have reached a deal to trade in their own currencies, ditching the United States dollar as an intermediary entirely, AFP reported.

The deal, Beijing’s latest salvo against the almighty greenback, will enable China, the top rival to US economic hegemony, and Brazil, the biggest economy in Latin America, to conduct their massive trade which amounts to $150 billion per year, and financial transactions directly, exchanging yuan for reais and vice versa instead of going through the US dollar. In doing so China extends its bilateral, USD-exempting currency arrangements beyond countries such as Russia, Pakistan and Saudi Arabia to now include the Latin American exporting powerhouse.

[jato0072]

“How did you go bankrupt?" Two ways. Gradually, then suddenly.” ― Ernest Hemingway

[theluckycountry]

In the Heart of Destitute America
https://www.youtube.com/watch?v=f78ZVLVdO0A

[AdamB]

$this->bbcode_second_pass_quote('theluckycountry', 'I')n the Heart of Destitute America
https://www.youtube.com/watch?v=f78ZVLVdO0A

[evilgenius]

$this->bbcode_second_pass_quote('theluckycountry', '')$this->bbcode_second_pass_quote('careinke', 'T')he problem with countries who do try and find an alternative to the U.S. Petrol dollar is:

1. The U.S. will destroy your country through war.
2. Kill the leader of the country.

[theluckycountry]

$this->bbcode_second_pass_quote('evilgenius', '
')There is only one problem with your calculus. When it comes to most resources that impact upon the coming electric future, all that the US has to do is reverse its Wilderness Area policy.

[theluckycountry]

Last week Brazil, this week Malaysia. It's like dominos, these countries smell something, or know something and they are getting OUT of the $US before it becomes worth-less.

Malaysia To Dump US Dollar | China Backs “Asian Monetary Fund”
https://www.youtube.com/watch?v=4lR8fCenE2A

[evilgenius]

$this->bbcode_second_pass_quote('theluckycountry', '')$this->bbcode_second_pass_quote('evilgenius', '
')There is only one problem with your calculus. When it comes to most resources that impact upon the coming electric future, all that the US has to do is reverse its Wilderness Area policy.

[theluckycountry]

Macron Says Europe Should Reduce Dependence On US Dollar, Seek 'Strategic Autonomy'



This comes on the back of "France Taps Emergency Fuel Stocks as Strikes Hobble Production"

It's one thing for a nation like Brazil or Saudi Arabia to thumb it's nose at the "Rule based order" of the $US, it's quite another when a stalwart of the coalition of the willing puts out rhetoric like this.

The nations are not stupid, they know the US is just about run its course as the world's figurehead/ reserve banker, and like a game of musical chairs no one wants to be the last one standing when the bucks and bonds need to be sent back home. I think beneath the surface there is a lot of anger in Europe because it was sucked into this phoney war in the ukraine. They really couldn't care less about what happens there and they are not happy about being impoverished just because the US wants to continue the cold war right to the very end.