screwball Posted March 29, 2023 Report Share Posted March 29, 2023 https://www.barrons.com/articles/china-brazil-strike-deal-to-ditch-dollar-for-trade-8ed4e799 1 1 Quote Link to comment Share on other sites More sharing options...
screwball Posted March 29, 2023 Author Report Share Posted March 29, 2023 come on iraq.... 1 2 Quote Link to comment Share on other sites More sharing options...
markb57 Posted March 30, 2023 Report Share Posted March 30, 2023 all these years of the US helping countries all over the world. Now, they're doing this. Hopefully, we can now stop all this worldwide charity. Kick the UN out of the US and take care of own. 1 2 1 4 Quote Link to comment Share on other sites More sharing options...
Bandit795 Posted March 30, 2023 Report Share Posted March 30, 2023 31 minutes ago, markb57 said: all these years of the US helping countries all over the world. Now, they're doing this. Hopefully, we can now stop all this worldwide charity. Kick the UN out of the US and take care of own. 1 1 Quote Link to comment Share on other sites More sharing options...
markb57 Posted March 30, 2023 Report Share Posted March 30, 2023 saying USA is a little broad. the CIA generally is behind all these coups.... 1 Quote Link to comment Share on other sites More sharing options...
Luigi1 Posted March 30, 2023 Report Share Posted March 30, 2023 WSJ recently ran an article about the strength of the USD. Everything Russia & China throws at the the USD to weaken it only strengthens it while their own currencies weakens. Relax. The USD is not going anywhere, anytime soon. IMHO. 2 2 Quote Link to comment Share on other sites More sharing options...
coorslite21 Posted March 30, 2023 Report Share Posted March 30, 2023 37 minutes ago, Luigi1 said: WSJ recently ran an article about the strength of the USD. Everything Russia & China throws at the the USD to weaken it only strengthens it while their own currencies weakens. Relax. The USD is not going anywhere, anytime soon. IMHO. MODERN DIPLOMACY Finance U.S. bank trouble heralds The End of dollar Reserve system The US banking system is broken, stresses ‘The Asia Times’. That doesn’t portend more high-profile failures like Credit Suisse. The central banks will keep moribund institutions on life support. But the era of dollar-based reserves and floating exchange rates that began on August 15, 1971, when the US severed the link between the dollar and gold, is coming to an end. The pain will be transferred from the banks to the real economy, which will starve for credit. And the geopolitical consequences will be enormous. The seize-up of dollar credit will accelerate the shift to a multipolar reserve system, with advantage to China’s yuan as a competitor to the dollar. Gold, the “barbarous relic” abhorred by John Maynard Keynes, will play a bigger role because the dollar banking system is dysfunctional, and no other currency — surely not the tightly-controlled yuan — can replace it. Now at an all-time record price of US$2,000 an ounce, gold is likely to rise further. The greatest danger to dollar hegemony and the strategic power that it imparts to Washington is not China’s ambition to expand the international role of the yuan. This crisis is utterly unlike 2008, when banks levered up trillions of dollars of dodgy assets based on “liar’s loans” to homeowners. Fifteen years ago, the credit quality of the banking system was rotten and leverage was out of control. Bank credit quality today is the best in a generation. The crisis stems from the now-impossible task of financing America’s ever-expanding foreign debt. America’s chronic current account deficits of the past 30 years amount to an exchange of goods for paper: America buys more goods than it sells, and sells assets (stocks, bonds, real estate, and so on) to foreigners to make up the difference. America now owes a net $18 trillion to foreigners, roughly equal to the cumulative sum of these deficits over 30 years. The trouble is that the foreigners who own US assets receive cash flows in dollars, but need to spend money in their own currencies. Before 1971, when central banks maintained exchange rates at a fixed level and the United States covered its relatively small current account deficit by transferring gold to foreign central banks at a fixed price of $35 an ounce, none of this was necessary. The end of the gold link to the dollar and the new regime of floating exchange rates allowed the United States to run massive current account deficits by selling its assets to the world. In effect, the market worries that buying inflation protection from the US government is like passengers on the Titanic buying shipwreck insurance from the captain. The gold market is too big and diverse to manipulate. The dollar reserve system will go out not with a bang, but a whimper. The central banks will step in to prevent any dramatic failures. But bank balance sheets will shrink, credit to the real economy will diminish and international lending in particular will evaporate. Southeast Asia will rely more on its own currencies and the yuan. The dollar frog will boil by slow increments. It’s fortuitous that Western sanctions on Russia during the past year prompted China, Russia, India and the Persian Gulf states to find alternative financing arrangements. These are not a monetary phenomenon, but an expensive, inefficient and cumbersome way to work around the US dollar banking system. As dollar credit diminishes, though, these alternative arrangements will turn into permanent features of the monetary landscape, and other currencies will continue to gain ground against the dollar, concludes ‘The Asia Times’. 1 2 Quote Link to comment Share on other sites More sharing options...
Luigi1 Posted March 30, 2023 Report Share Posted March 30, 2023 2 hours ago, coorslite21 said: MODERN DIPLOMACY Finance U.S. bank trouble heralds The End of dollar Reserve system The US banking system is broken, stresses ‘The Asia Times’. That doesn’t portend more high-profile failures like Credit Suisse. The central banks will keep moribund institutions on life support system" rel="">support. But the era of dollar-based reserves and floating exchange rates that began on August 15, 1971, when the US severed the link between the dollar and gold, is coming to an end. The pain will be transferred from the banks to the real economy, which will starve for credit. And the geopolitical consequences will be enormous. The seize-up of dollar credit will accelerate the shift to a multipolar reserve system, with advantage to China’s yuan as a competitor to the dollar. Gold, the “barbarous relic” abhorred by John Maynard Keynes, will play a bigger role because the dollar banking system is dysfunctional, and no other currency — surely not the tightly-controlled yuan — can replace it. Now at an all-time record price of US$2,000 an ounce, gold is likely to rise further. The greatest danger to dollar hegemony and the strategic power that it imparts to Washington is not China’s ambition to expand the international role of the yuan. This crisis is utterly unlike 2008, when banks levered up trillions of dollars of dodgy assets based on “liar’s loans” to homeowners. Fifteen years ago, the credit quality of the banking system was rotten and leverage was out of control. Bank credit quality today is the best in a generation. The crisis stems from the now-impossible task of financing America’s ever-expanding foreign debt. America’s chronic current account deficits of the past 30 years amount to an exchange of goods for paper: America buys more goods than it sells, and sells assets (stocks, bonds, real estate, and so on) to foreigners to make up the difference. America now owes a net $18 trillion to foreigners, roughly equal to the cumulative sum of these deficits over 30 years. The trouble is that the foreigners who own US assets receive cash flows in dollars, but need to spend money in their own currencies. Before 1971, when central banks maintained exchange rates at a fixed level and the United States covered its relatively small current account deficit by transferring gold to foreign central banks at a fixed price of $35 an ounce, none of this was necessary. The end of the gold link to the dollar and the new regime of floating exchange rates allowed the United States to run massive current account deficits by selling its assets to the world. In effect, the market worries that buying inflation protection from the US government is like passengers on the Titanic buying shipwreck insurance from the captain. The gold market is too big and diverse to manipulate. The dollar reserve system will go out not with a bang, but a whimper. The central banks will step in to prevent any dramatic failures. But bank balance sheets will shrink, credit to the real economy will diminish and international lending in particular will evaporate. Southeast Asia will rely more on its own currencies and the yuan. The dollar frog will boil by slow increments. It’s fortuitous that Western sanctions on Russia during the past year prompted China, Russia, India and the Persian Gulf states to find alternative financing arrangements. These are not a monetary phenomenon, but an expensive, inefficient and cumbersome way to work around the US dollar banking system. As dollar credit diminishes, though, these alternative arrangements will turn into permanent features of the monetary landscape, and other currencies will continue to gain ground against the dollar, concludes ‘The Asia Times’. The end of the FIAT Dollar & the PertoDollar are dead. The asset backed USD digital will come back stronger than ever. Also referred to as the rainbow multicolored currency or the new UST note. The US Federal Reserve notes are going away. 1 2 Quote Link to comment Share on other sites More sharing options...
Luigi1 Posted March 30, 2023 Report Share Posted March 30, 2023 The US is Brazil's biggest trading partner. If Brazil wants to do trade with the US, it will be done in USD or Brazil can look to other trading partners. It's that simple. OBiden has the power to force China to trade with the US in US Dollars as China demands we trade in Yuan only. China has China Joe in it's back pocket so the unfair trade practices continues. 1 3 Quote Link to comment Share on other sites More sharing options...
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