(Dollarization).. Rapid retreat includes Iraq and threatens US hegemony

[yota691]

“Is The Collapse Of The Petrodollar Imminent?” A Report Reveals A New Monetary Era

06/04/2023

1435

Earth News / The large reserves of gold in the United States of America after World War II allowed Washington to rebuild the global monetary system and make it based mainly on the dollar, but this system began to disintegrate in the recent period for several reasons, including political and economic, according to reports.

The new system, which was established at the “Bretton Woods” conference in 1944, linked the currencies of almost every country in the world to the US dollar through a fixed exchange rate, and also linked the US dollar to gold at a fixed rate of $ 35 an ounce, which encouraged banks around the world to adopt dollars in its reserves.

The era of linking the dollar to gold made the “Bretton Woods” system make the US dollar the first reserve currency in the world, and forced other countries to store dollars for international trade or exchange them with the US government for gold at the specified rate.

The day Washington surprised the world.. Cutting off the dollar's link with gold Unbridled spending on war and social welfare led the US government to print more dollars than it could support in gold and at the price set for it, according to a report published on the "internationalman" website.

By 1967, the number of dollars in circulation had increased dramatically relative to the amount of gold backing them, which encouraged other countries to exchange their dollars for gold, which led to the depletion of the American gold supply at an alarming rate, and the collapse of the London gold complex, and at this point, it was clear This system was beginning to collapse.

On Sunday night, August 15, 1971, US President Nixon cut off all scheduled television broadcasts and made a surprise announcement to the American people and the world, announcing the unilateral end of the Bretton Woods system and severing the dollar's last peg to gold.

America creates the “petrodollar” to get out of its predicament.

The end of gold support for the dollar had great geopolitical consequences, and most importantly, it eliminated the main reason that made countries store large amounts of US dollars and use the US dollar in international trade. As a result, oil-producing countries began to demand With gold payments instead of a rapid depreciation of the dollar.

In order to get out of the dilemma of linking the dollar to gold, Washington, which is considered one of the largest consumers of energy, linked oil purchases to the dollar, and since that time, the term “petrodollar” appeared.

Washington recycled hundreds of billions of US dollars from annual oil revenues and transferred them to US Treasury bonds, which allowed it to issue more debt and finance a previously unimaginable budget deficit, but these measures also caused major problems, on top of which were financial crises. Globalism.

But this method ignored countries also continue to use the dollar, and give it more time, to maintain its unique position as the largest reserve currency in the world.

Why was the oil chosen?
Oil is the largest and most strategic commodity market in the world, the annual production value of the oil market is ten times greater than the gold market.

According to the report, every country needs oil, and if foreign countries need US dollars to buy oil, they have a convincing reason to keep US dollars even if they are not backed by a promise to redeem them in gold. For example, if France wants to buy oil from any oil country, it must buy US dollars from the foreign exchange market to pay for oil first.

This creates a huge artificial market for the US dollar to distinguish the US dollar from the local currency, and for the dollar to become just a medium to be used in countless transactions, worth trillions of dollars that have nothing to do with US products or services.

Because the oil market is huge, it acts as a standard for international trade, so if foreign countries already use dollars for oil, it is easier to use dollars for other international trade.

In addition to almost all oil sales, the US dollar is used in about 80% of all international transactions, and the “petrodollar” system eventually boosts the purchasing power of the US dollar by enticing foreigners to buy dollars.

The petrodollar system helped create a deeper and more liquid market for dollars and US Treasuries, and it also helped the US keep interest rates lower than they would otherwise be, allowing the US government to finance huge deficits it otherwise would not be able to.

The US army protects the dollar, not the economy.

The report indicated that “the United States protects the hegemony of the dollar in a great way. For example, a number of presidents tried to give up the hegemony of the dollar and sell oil in this currency, so that their fate would be death, as happened with Iraqi President Saddam Hussein and Libyan Muammar Gaddafi.”

However, the matter seems different with the emergence of nuclear superpowers such as Russia and China, which are challenging the dollar, as the United States will not enter into a direct military conflict with these two powers, despite their taking the step of giving up the “petrodollar.”

US sanctions accelerate the collapse of the petro-dollar system

The report talked about the sanctions imposed on Russia after its special military operation in Ukraine, where the United States imposed fierce sanctions against Russia, which a former US Treasury official described as a “financial nuclear war and the largest sanctions event in history.”

The era of loss of confidence and disengagement from the dollar

Washington imposed sanctions on the reserves of the Russian Central Bank, but this measure showed to the public that the United States of America is able to seize the dollar reserves of other sovereign countries, which made many countries reconsider this link and try to find alternatives to it. .

The sanctions showed that the currency reserves accumulated by central banks could be withdrawn, noting that China might be able to reshape geopolitics, economic management, and even the international role of the US dollar.

The report indicated that Russia is the largest producer of energy and China is the largest importer of energy, and Russia is one of the largest suppliers of oil to China.

Now that the US has banned Russia from the dollar system, there is an urgent need for a reliable system capable of handling hundreds of billions of dollars worth of oil sales outside of the dollar and the US financial system.

According to the article, the “Shanghai International Energy Exchange” is that new system, where there is a massive trade exchange of energy between Russia and China in yuan and not in US dollars, and if the United States implements sanctions against China using the dollar, this will be a new “financial nuclear bomb”.

The article concluded that oil-producing countries have two options:

1. Continuing the “petrodollar” system, which is facing problems at the present time, because the financial situation in the United States is not promising, which may cause the dollar to lose its great purchasing power and expose these countries to great economic risks.

2. Shanghai International Energy Exchange, where oil producers can participate in the largest market in the world and try to get a larger share of the market.

They can also convert its revenues and return them easily to gold, which is an international form of money without political risks or risks from the counterparty.
The author of the article concluded, "Although most people do not realize this yet, we are at the end of the petrodollar system, on the cusp of a new monetary era."

[yota691]

The BRICS group is working to launch an alternative common currency to the US dollar

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14:18  2023-04-10  12  Economy 0

 

The BRICS group announced today, Monday, that it is about to launch a common currency between them, an alternative to the US dollar.

And "BRICS" is an abbreviation of the initials in the Latin language BRICS, which make up the names of the countries with the fastest economic growth in the world, namely: Brazil, Russia, India, China and South Africa. And media reported that Türkiye, Egypt and Saudi Arabia are expected to join the group.

It is noteworthy that the first summit between the heads of the four founding countries was held in Yekaterinburg, Russia, in June 2009, which included announcing the establishment of a bipolar world order.

Recently, Kenya signed two deals with Saudi Arabia and the UAE to buy oil in its local currency, the Kenyan shilling, and Ghana in gold instead of the US dollar.

The US dollar is the official currency in the United States and has become an important global reserve currency. It is the most widely used currency in global transactions. America manages the dollar’s financial policy and controls it in global international trade.

Some countries, including Russia, are trying to dispense with the US dollar in their oil sales with exporting countries, given that America uses its national currency to impose sanctions on Russia after the latter's war on Ukraine.

A few days ago, the Russian Ministry of Finance announced that it would change the structure of the National Welfare Fund within a month, as it would dispense with the dollar and replace the US currency with gold and other currencies.

Many countries, including Russia, find it difficult to dispense with the US dollar because the primary commodities are the most traded in the world, with a trade volume estimated at $14 trillion annually, 99% of which is traded in dollars, which is the most important source of income in Russia, in addition to that the dollar is more A currency on which countries rely for monetary reserves.

[yota691]

BRICS is in the process of launching an alternative common currency to the US dollar

2023-04-10 02:33

 

 

 

Shafaq News/ The BRICS group of countries announced, on Monday, that it is about to launch a common currency, an alternative to the US dollar.

 

And "BRICS" is an abbreviation of the initials in the Latin language BRICS, which make up the names of the countries with the fastest economic growth in the world, namely: Brazil, Russia, India, China and South Africa. And media reported that Türkiye, Egypt and Saudi Arabia are expected to join the group.

 

It is noteworthy that the first summit between the heads of the four founding countries was held in Yekaterinburg, Russia, in June 2009, which included announcing the establishment of a bipolar world order.

 

Recently, Kenya signed two deals with Saudi Arabia and the UAE to buy oil in its local currency, the Kenyan shilling, and Ghana in gold instead of the US dollar.

 

The US dollar is the official currency in the United States and has become an important global reserve currency. It is the most widely used currency in global transactions. America manages the dollar’s financial policy and controls it in global international trade.

Some countries, including Russia, are trying to dispense with the US dollar in their oil sales with exporting countries, given that America uses its national currency to impose sanctions on Russia after the latter's war on Ukraine.

 

A few days ago, the Russian Ministry of Finance announced that it would change the structure of the National Welfare Fund within a month, as it would dispense with the dollar and replace the US currency with gold and other currencies.

 

Many countries, including Russia, find it difficult to dispense with the US dollar because the primary commodities are the most traded in the world, with a trade volume estimated at $14 trillion annually, 99% of which is traded in dollars, which is the most important source of income in Russia, in addition to that the dollar is more A currency on which countries rely for monetary reserves.

[yota691]

Launching an alternative common currency to the US dollar

Economical  2023/04/11

 

 

 Capitals: agencies

 

Yesterday, Monday, the BRICS group announced that it is about to launch a common currency among them, an alternative to the US dollar.

 

And "BRICS" is an abbreviation of the initials in the Latin language BRICS, which make up the names of the countries with the fastest economic growth in the world, namely: Brazil, Russia, India, China and South Africa. And media reported that Türkiye, Egypt and Saudi Arabia are expected to join the group.

 

It is noteworthy that the first summit between the heads of the four founding countries was held in Yekaterinburg, Russia, in June 2009, which included announcing the establishment of a bipolar world order.

 

Recently, Kenya signed two deals with Saudi Arabia and the UAE to buy oil in its local currency, the Kenyan shilling, and Ghana in gold instead of the US dollar.

 

The US dollar is the official currency in the United States and has become an important global reserve currency. It is the most widely used currency in global transactions.

America manages the dollar’s financial policy and controls it in global international trade.

Some countries, including Russia, are trying to dispense with the US dollar in their oil sales with exporting countries, given that America uses its national currency to impose sanctions on Russia after the latter's war on Ukraine.

 

A few days ago, the Russian Ministry of Finance announced that it would change the structure of the National Welfare Fund within a month, as it would dispense with the dollar and replace the US currency with gold and other currencies.

 

Many countries, including Russia, find it difficult to dispense with the US dollar because the most traded primary commodities in the world, with a trade volume estimated at about $14 trillion annually, 99% of which are traded in dollars, which is the most important source of income in Russia, in addition to the fact that the dollar is The most dependent currency on which countries are in terms of reserves 

[yota691]

A "thunderbolt" statement from the International Monetary Fund regarding dollar reserves globally.. What does that mean?

 

Arab and international
   

Economy News / Baghdad
The International Monetary Fund stated that the dollar’s share in global foreign exchange reserves decreased at the end of last year 2022 to 58.36%, which is the lowest level in 27 years.

 

The fund added that non-reserve currencies have become the main beneficiaries, with their share jumping to the maximum level since mid-2012.

 

The international institution stated that the dollar’s share in international foreign exchange reserves declined in 2022 by 0.44% to 58.36%, which is the lowest level since at least 1995.

 

The International Monetary Fund noted that the decline in the share of the "American" was the strongest of all currencies. The share of the euro decreased by 0.12% to 20.47%, the Chinese yuan by 0.11% to 2.69%, and the Japanese yen by 0.01% to 5.51%.

 

Meanwhile, the share of the British pound increased by 0.14%, the Australian dollar by 0.12% to 1.96%, and the Swiss franc by 0.06% to 0.23%, while the Canadian dollar maintained its share at 2.38%.

However, other currencies increased their share by 0.36%, reaching 3.45%, the maximum since the second quarter of 2012.

 

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Views 6

Added 04/11/2023 - 4:30 PM

[6ly410]

(Dollarization).. Rapid retreat includes Iraq and threatens US hegemony

Economy | Today, 18:28 | 

    (Dollarization).. Rapid decline includes Iraq and threatens US hegemony » Baghdad News Agency Today (baghdadtoday.news)

Baghdad Today - Follow-up

The process of dollarization is accelerating all over the world.

"Dollarization" can be defined as the cessation of the state's use of its own national currency due to the loss of its basic functions as a medium of exchange and store of value, and the resort to the use of foreign currency such as the US dollar, the Japanese yen, the euro or any convertible currency.

Until recently, it was unreasonable for the dollar to lose strength, except perhaps for countries under U.S. sanctions but then Russia sent troops to Ukraine.

By imposing sanctions and separating Moscow from the global financial system, Washington has troubled many emerging economies and pushed them to seek alternatives.

China has noted this and is now urging other countries to follow suit, and this rising tide is eroding the dollar's dominance.

Although no one in the world will abandon the US currency in the near future, the trend is clear: the economies of many countries are looking for settlement mechanisms and an alternative to reduce dependence on the United States.

For example, Russia already sells natural gas to China for the yuan and France supplies China with liquefied natural gas in exchange for the yuan.

The possibility of introducing a single currency will be discussed at the BRICS summit (Brazil, Russia, India, China and South Africa) in August 2023, which will be held in South Africa.

It should be noted that the Iraqi government banned the use of dollars in both private and commercial transactions from now on, and it is impossible to buy and sell foreign currencies.

Iraq's dollar ban, which went into effect on May 14, aims to expand the use of the national currency, the dinar, and strengthen it accordingly.

The short-sighted actions of Western countries that have implemented sanctions against Russia have created a real threat to their companies Thus, it can be concluded that Western sanctions are not an effective tool for political pressure and that weakening the role of the dollar is not only a matter of national security, but also a matter of global political and economic stability.

 

[horsesoldier]

This is what happens when U have planet wide unenlightened, selfish, greedy and otherwise myopic incompetent bureaucrats running said planet.

[horsesoldier]

I'd move off world if I could but this is it , so " in the near future " I'll move to that special quiet place with acreage and live a peaceful quiet life in my reclining years. 

That's the plan anyhow.

[Longtimelurker]

2 hours ago, horsesoldier said:

I'd move off world if I could but this is it , so " in the near future " I'll move to that special quiet place with acreage and live a peaceful quiet life in my reclining years. 

That's the plan anyhow.

You're going to be extremely excited about hidden truths we learn about when "the show" is over 👍

[Longtimelurker]

6000+ hidden patents, some medical, some tech and some secrets related to our planet.

Edited May 26, 2023 by Longtimelurker

[Shedagal]

3 hours ago, Longtimelurker said:

You're going to be extremely excited about hidden truths we learn about when "the show" is over 👍

Yep; and I'm like Caleb - I want my mountain!!!  Nowhere near ready for the pasture.

[screwball]

11 hours ago, Shedagal said:

Yep; and I'm like Caleb - I want my mountain!!!  Nowhere near ready for the pasture.

[Woldopep]

15 hours ago, Longtimelurker said:

You're going to be extremely excited about hidden truths we learn about when "the show" is over 👍

Long time, what are you guys talking about. Is there something I need to know ?

[Longtimelurker]

On 5/27/2023 at 6:33 AM, Woldopep said:

Long time, what are you guys talking about. Is there something I need to know ?

I'm referencing Q. Q followers such as myself believe there is a war between good and evil going on. The war is already won but needs to played out by actors, masks, CGI etc to "wake" up the masses to avoid civil war. We believe that the "Great Awakening" includes learning about the evil that has been taking place by our politicians, Hollywood, athletes etc as well as suppressed technology and medical cures, over 6000 hidden patents will be brought forward along with truths about our planet. God wins, but we need to be prepared for what's about to happen. Stock up on food, water and ammo etc as we believe we will have a few weeks of rough times.  

[horsesoldier]

2 hours ago, Longtimelurker said:

I'm referencing Q. Q followers such as myself believe there is a war between good and evil going on. The war is already won but needs to played out by actors, masks, CGI etc to "wake" up the masses to avoid civil war. We believe that the "Great Awakening" includes learning about the evil that has been taking place by our politicians, Hollywood, athletes etc as well as suppressed technology and medical cures, over 6000 hidden patents will be brought forward along with truths about our planet. God wins, but we need to be prepared for what's about to happen. Stock up on food, water and ammo etc as we believe we will have a few weeks of rough times.  

Claymores, don't for the Claymores. They're a fabulous deterrent. 

God bless and " keep your powder dry"

[VIRGINPARADIZE]

Before long the Iraqi Dinar will have to reflect the true value for what the country is worth in Natural Resources on the World Stage. Propping up the declining toxic USD is fading rapidly. Only China and The Multi-Polar World Order in the making have the Key for Iraq and other subdued Nations to rise Economically. Only time will tell. 

[Officiallytook]

3 hours ago, Longtimelurker said:

I'm referencing Q. Q followers such as myself believe there is a war between good and evil going on. The war is already won but needs to played out by actors, masks, CGI etc to "wake" up the masses to avoid civil war. We believe that the "Great Awakening" includes learning about the evil that has been taking place by our politicians, Hollywood, athletes etc as well as suppressed technology and medical cures, over 6000 hidden patents will be brought forward along with truths about our planet. God wins, but we need to be prepared for what's about to happen. Stock up on food, water and ammo etc as we believe we will have a few weeks of rough times.  

Exactly! 💯

[Theseus]

3 hours ago, Longtimelurker said:

I'm referencing Q. Q followers such as myself believe there is a war between good and evil going on. The war is already won but needs to played out by actors, masks, CGI etc to "wake" up the masses to avoid civil war. We believe that the "Great Awakening" includes learning about the evil that has been taking place by our politicians, Hollywood, athletes etc as well as suppressed technology and medical cures, over 6000 hidden patents will be brought forward along with truths about our planet. God wins, but we need to be prepared for what's about to happen. Stock up on food, water and ammo etc as we believe we will have a few weeks of rough times.  

Then let me welcome you to the show, Q followers. That is a war that has been ongoing for a mighty, mighty, long time going back to the time of Lemuria and Atlantis and longer.

[Officiallytook]

1 hour ago, Theseus said:

Then let me welcome you to the show, Q followers. That is a war that has been ongoing for a mighty, mighty, long time going back to the time of Lemuria and Atlantis and longer.

Exactly... It's why it's been several "resets" throughout history weather wise causing it... If we all don't reach higher enlightenment then it will happen again... Peace and truth must come to light and then we can unlock our true godlike abilities 

[Longtimelurker]

1 hour ago, Theseus said:

Then let me welcome you to the show, Q followers. That is a war that has been ongoing for a mighty, mighty, long time going back to the time of Lemuria and Atlantis and longer.

Agreed 👍

 

I believe we will witness God's victory before the cycle begins again... Never ending.. 

[Woldopep]

1 hour ago, Longtimelurker said:

 

I believe we will witness God's victory before the cycle begins again... Never ending.. 

I do a lot of reading and never heard of this before. I am not saying you are wrong, anything is possible. If the same things keep repeating…. Seems pointless

we are going to get in trouble, this is off topic

[yota691]

"Financial Times": The dollar will maintain its dominance as the global reserve currency during the next decade

Markets

London

The New Arab

June 28, 2023

 

The US dollar is still the first currency in the foreign exchange reserves of most countries (Getty)

The Financial Times expected, on Tuesday, that the dollar will maintain its position as the main reserve currency in the world during the next decade, according to an annual survey that is usually closely watched by central banks, despite the growing calls from some countries to adopt alternatives .

 

A survey by the Official Monetary and Financial Institutions Forum (OMFEF), a think tank affiliated with the British Central Bank, found that central banks, which manage nearly $5 trillion in assets combined, expected the dollar as a proportion of global reserves to continue to decline “gradually.” However, it expected that the US currency would still control approximately 54% of the total reserves within 10 years, compared to the 58% it occupies today.

 

Global reserves are foreign assets held by central banks in large quantities, with the aim of meeting their international payments, and also to support local currencies when needed.

 

Among those trying to challenge the dominance of the dollar at the moment is Brazilian President Luiz Inacio Lula da Silva, who called on emerging markets to review their dependence on the dollar at a summit in Paris last week.

South African President Cyril Ramaphosa said that the "currency issue" will be on the agenda of the next BRICS meeting, in August. The bloc also includes Russia, India and China.

 

The dominance of the dollar has been gradually affected in recent decades with the decline of the role of the United States in global trade, while the freezing of assets belonging to the Russian Central Bank, with a value of more than $ 300 billion, last year, sparked new calls among some of the largest emerging economies in the world, to diversify their reserves away from the dollar. Which is held in instruments that are mostly under the control of the US Federal Reserve and Treasury Department.

 

At the beginning of this century, the dollar represented more than 70% of global reserves, according to International Monetary Fund data.

 

Nikhil Sanghani, managing director of the OMEF Forum, told the British newspaper that there has been a tendency to move the dollar over the past ten years, noting that reserve managers assert that it is unlikely that there will be a trend that enjoys significant international support in this direction.

 

The forum's poll found that 16% of central banks planned to increase holdings of the US dollar in the next two years, compared to 10% who planned to decrease it. However, over the next 10 years, 6% of central bank reserve managers said they expected to reduce their dollar holdings.

 

China, the world's largest holder of reserve assets, has pressed for increased adoption of its currency by other countries. But Sanghani says that the sanctions imposed on Russia have increased the importance of the geopolitical component, pointing to the reluctance of reserve managers to invest in the Chinese currency, given its tense relationship with the United States of America.

According to the same study, the number of countries expecting to increase their holdings of the Chinese currency fell to only 13%, from more than 30% last year.

Despite this, five central banks expect to increase their holdings of the Chinese currency, the renminbi, over the next ten years, expecting their share of global reserves to rise from about 3% to 6% by 2033.

 

In this regard, Sanghani stated that reserve managers would like to move in this direction over the next ten years, but they believe that now is not the right time to do so.

The study indicates that the euro will be the biggest beneficiary of the shift away from the dollar, and also away from China.

 

While the euro currently represents about 23% of global reserves, 14% of central banks intend to increase their holdings of euros in the next two years, which is a significant increase from last year, as there were no banks planning to increase their euro reserves.

The survey also found that none of the 75 participating central banks expected inflation to return to 2% in the next 12 to 24 months.

 

"The reserve managers have little confidence that their colleagues on monetary policy committees will bring inflation under control," the report said.

More than half of central banks expected inflation to remain stuck between 2% and 4%, while 48% believed that inflation would be between 4% and 6%.

[tjokie]

Hey @Theseus,

 

I just wanted to give you a heads up. I hid your recent post simply because it is off-topic for the thread. No warnings or anything. You're entitled to your opinion. Whether or not I agree with it has nothing to do with it. If it's important for you to have it posted, please copy and paste it in a more appropriate section. You should still be able to access your own posts whether it's hidden or not.

 

Thanks!

tjokie