Do you believe that dedollarisation is occurring and if it is occurring it that a major threat to our economy?

[Adaeva]

USD is suffering 'stunning collapse' as world's reserve currency. The greenback's share of official global reserve currencies dropped from 73% in 2001 to about 55% in 2021. And in 2022, it tumbled to 47% of total global reserves.

Coordinated sanctions against Russia alerted many countries, pushing them to seek currency alternatives — for trade settlements and reserve build-up.

More and more countries, led by China and Russia, are making bilateral trade agreements that exclude the U. S. dollar. The yuan is already the most traded currency in Russia, according to data compiled by Bloomberg. This happened only in February after the yuan surpassed the dollar in monthly trading volume for the first time.

China recently completed the first yuan-settled LNG trade. China also struck a deal with Brazil to trade in their own country's currencies.

At the same time, China and Malaysia are discussing the creation of an Asian Monetary Fund to reduce reliance on the U. S. dollar, while India and Malaysia announced that they abandoned trading in U. S. dollars and can now settle in Indian Rupees.

Also, central banks have been flocking to gold as a preferred reserve asset, buying record amounts in 2022. https://www.kitco.com/news/2023-04-19/USD-is-suffering-stunning-collapse-as-world-s-reserve-currency-warns-Eurizon-SLJ-Capital-s-Jen.html

Updates

+1 y

Global De-Dollarization Nearing "Crossroads Moment"
www.zerohedge.com/.../escobar-global-de-dollarization-nearing-crossroads-moment

[Anonymous]

In general reserve currency status tends not to last more than 100 years.
Still sending the dollar to war over the Ukraine is given the whole world a compelling reason to significantly accelerate the decline of the dollar.
That of course makes it much worse as it is far easier to deal with the lower inflation of a slow decline than the higher inflation of a fast one.

[Grond21]

https://youtu.be/LiR54FPQiCs

It's hard to say. But I think this is an interesting take

[Adaeva]

China is large enough if they take the long-term view. That is, suffer losses for several years knowing they will profit after 20 year. That is not possible for the USA because no American politician looks 20 years into the future. They are only concerned about the next election and if they vote for policies that have a near term loss, they get voted out of office.

[Grond21]

I would say that is true of China, but it doesn't matter anymore. They are about to enter a demographic free fall so intense that there is no economic model that can map any sort of success.

[Avicenna]

Yes, it's happening and it's a huge problem for a country with low savings rates and whose government has been spending way too much money for years.

[jshm2]

The dollar had long been fiat currency. The US is just to risky to keep on top.

[abc3643]

Do you know who "Chicken Little" is?

Your frequent posts about the dollar and BRICS are earning you that reputation.

[Adaeva]

Just as ads are shown dozens of times, I must tell the truth many times for people to learn and remember the truth.

[abc3643]

Except that it's not the truth.

I am going to teach you something that is very important.
It is not about politics.
It is not about economics.
It is not about world affairs.
It is about human nature...

>>> Generally, people avoid fear and uncertainty.
They crave safety.
Especially the older they get.

This is important to understand because it will help you predict human behavior in the long run.

(more)

[abc3643]

====
With that in mind, when you look at the BRICS countries, that's all well-and-good except for a major problem: Autocracies and instability.

China and Russia are now de facto autocracies.
Brazil could teeter to one and almost did.
India is a bit stable after having several assassinations. South Africa is, for the most part, stable now since the end of apartheid.

Each of these countries has gone through 1 or more revolutions and considerable political upheaval or major wars in the past century and they do not have a track record of stability with peace at home.

Indeed, Russia and China have been enemies only 50 years ago and, even today, India and China are not exactly friendly having a major border dispute including having fought a war in 1962. India also has had a border dispute with Pakistan for 75 years.

In the eyes of the West, all of these countries... how can I put this? ... don't have their shit together.
Comparatively speaking, the West has been stable since WW2 and the US has been stable for over 150 years. In the 234 years since the US Constitution has gone into effect, the US has never defaulted on its debt and is mandated under the 14th Amendment to pay its debts.

Thus, western countries - the ones with the money and the ones whose money flowed to these other countries to help them develop - have reached a level of peace and stability that they do not want to give up. Investing in instability is risky and may have great rewards, but could also yield great losses...

... and what do people want? To not experience fear - the fear of loss, the fear of uncertainty.

Thus, when things are serious, people stick with the safe, "tried and true" options.
Like the US Dollar.

(more)

[abc3643]

You are smart enough to realize this because you even cite examples of what I am saying...
Why has there been bank runs on SVB and First Republic? Because these banks were sloppy and risky and their actions put their account holders at risk. Thus, those people pulled their money out fast because they feared losing it when the banks go belly-up. Instead, they put their money into safer investments like with larger older more stable banks like JP Morgan Chase... or the US Treasury.

>>>>> This is how the real world works.
When the chips are down, fear enters people's minds and people hate fear so they will desperate to "seek shelter from the storm" and seek stable, safe situations.

Understand?

BRICS may be a nice idea. Russia definitely wants you to think so so, for Russia's sake, please continue to have your mind corrupted by RT, the Russian propaganda outlet. BRICS would be a good idea for several decades when these nations have joined the West having earned a decades-long reputation as stable, safe, peaceful democracies.

[abc3643]

You need to know something else...

Kitco is not a news organization.
Kitco is a Canadian company that trades in precious metals.
Traditionally, precious metals like gold, silver, and platinum were the medium of exchange before the advent of paper money. They are considered a safe investment.

So, what does Kitco want you to do?
Buy precious metal from them!
What's a good way to do that?
By instilling fear (See that? Fear, again!)... by instilling fear in investors that the dollar is no good so you divest from currencies like the dollar and feel safer investing in precious metals.
And how do they instill that fear about the dollar?
Write articles like the one you cited.
It's really not an article but a form of deceptive advertising to get you to invest in precious metals with Kitco.

You need to find better INDEPENDENT sources.

Here's a better source - and an independent source - which may help you with what you are trying to say.

www.bloomberg.com/.../brics-draws-membership-requests-from-19-nations-before-summit
TITLE: BRICS Draws Membership Bids From 19 Nations Before Summit
SUBTITLE: Algeria, Egypt, Indonesia have asked to join the group
Foreign ministers from the five BRICS members meet in June
By Paul Vecchiatto
April 24, 2023 at 6:54 AM CDT
Updated on April 25, 2023 at 2:41 AM CDT

As much as I have ridden you about BRICS and the dollar, you continue to look into it.
BUT: Don't be married to any position. Always keep an open mind. So, even though I have faith in the dollar, I am keeping an open mind about BRICS too.

[Adaeva]

I don't have faith in any fiat currency. They will all go to zero. By two very good standards, in the last 100 years, the dollar has lost 99% of it value. 1. The price of gold. 100 years ago gold was $20.67 per ounce. Now at $2,030, it takes 100 times as much to buy an ounce of gold. 2. 100 years ago, common labor was $1 per day. Now it is almost 100 times that. The advantage the dollar has over most other fiat currencies, is the dollar will go to zero less rapidly.

One thing I am certain of is that most countries in the world do no like the USA.

[abc3643]

"Fiat currency" has been the standard on this planet for a long time. In fact, even old standards like gold can't hold their value in the long run either because of technological development.

Ask yourself: Why are gold and silver "precious"?
The answer has to do with the metallurgical properties of these metals.

But, 1000 years ago, that was very important.
Now, much less so. For instance, titanium has better value in aircraft because of its strength and light weight. No planes are made out of gold or silver.
Microprocessors and all microelectronics involve silicon or germanium (Group IV elements) because these are semiconductors. Silver and gold are conductors but not semiconductors and that's an important difference. So, if silicon was rare (*), its value in the modern world would be vastly higher than gold or silver.

(*) After oxygen, silicon is the most abundant element on Earth.

So, in a sense, all currencies are fiat currencies - or, equivalently - no currency is a fiat currency.
It's all relative and changes over time.

Meanwhile, you really need to learn some economics. You also need to learn some calculus so you can learn economics.

[Adaeva]

You said, :"In the 234 years since the US Constitution has gone into effect, the US has never defaulted on its debt..." Actually it already has and it could happen again. www.zocalopublicsquare.org/.../

[abc3643]

RESPONSE TO UPDATE:
Zero Hedge is based in Bulgaria and is a de facto propaganda machine for Russia. Author Tyler Durden is a pseudonym for many authors based in Bulgaria.

www.bloomberg.com/.../unmasking-the-men-behind-zero-hedge-wall-street-s-renegade-blog

Learn to do due diligence which, for you, means evaluating the sources of your information.
Don't just give a pass to an entity because you want to believe what it says. Be discriminating. For one thing, always ask yourself "What is in it for these people to tell me what they are telling me?"

Another thing:
Whenever you hear or read something like "we're the source for news you won't get elsewhere"., that's an instant red flag. This is because real news is reported by multiple INDEPENDENT sources.

[abc3643]

Yes you are right about that.
Go with a better source than Zocalo though...
Here's a better source:
thehill.com/.../

[Adaeva]

I agree that is a better source because it is far more complete.

[ibodi]

That has been occuring just know that USA really do that from russian events.

and know misunderstanding USSR.

[SawerBrown]

This is interesting because any business dealings we currently have with either China or India payment is demanded in USD.

[Anonymous]

Yeah, the US has little gold and China is ready to take over with it's huge reserves of gold (mostly undeclared)

[Paris13]

The Dollar is Dying. xxoo