Miscellaneous News
- Thread starter bd popeye
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This is what I was talking about USD being international trading currency is a double edged sword, US can export its inflation, so can others force the inflation back to US by de-dollarization.
Central bank of G20 host rails against US dollar – media
The regulator wants to reduce reliance of the Indonesian financial markets on the greenback
Indonesia’s central bank has spoken out against the use of the US dollar in export-import transactions, and called for a switch to local currencies in international payments to reduce dependence on the greenback, news portal Tempo.co reported on Friday.
Most of Indonesia’s international trade transactions are conducted in foreign currencies, predominantly the dollar, according to Nugroho Joko Prastowo, head of Bank Indonesia’s Solo Representative Office, as cited by local media.
“90% of export-import settlements are in US dollars, when in fact the value of Indonesia's direct exports to the US is only 10%, and the value of US imports is only 5%,” the official told journalists after opening a session on 'Utilizing Local Currency Settlement (LCS) to Increase Export-Import Efficiency of the Greater Solo Region’.
He said transactions in foreign currencies incur conversion costs, and when they are in US dollars, “the conversion fee is doubled,” suggesting that a system of bilateral payments in local currency could solve the problem.
The official said four countries have agreed to utilize LCS with Indonesia so far, namely China, Japan, Thailand and Malaysia.
“Singapore has been plotted, although it has not been fully implemented, and soon the Philippines. Currently, the implementation of LCS with Saudi Arabia is also being explored,” he said.
Indonesia will be hosting the G20 international forum, bringing together 19 countries and the European Union, on November 15-16 on the island of Bali. Indonesia currently holds the presidency of the group of leading economies.
Here is how it works. Take trade between Indonesia and China for example, they used USD before. Those USD are their properties and remain their properties even after they switch to RMB and Rupiah for trading. Their USD suddenly lose representation of certain amount of goods in the world trade. China and Indonesia can still use their "surplus" USD to buy goods from whoever sell in USD. This makes the USD being excessive in the world, representing less goods, therefor causes USD to devaluate. Every country except US can switch trade to their local currency in theory. In the end, US is going to face all the offshore USD that is in circulation coming back to buy US goods. That is when the inflation comes back to US. This inflation is in the same scale that US has exported in the past decades. This is the old saying "chickens have come home to roost".
It is in fear of this, US will do whatever in their power to prevent it from happening including war, exampled by invasion of Iraq and bombing of Yugoslavia to knock down Euro. The transition to LCS has to be accompanied by security(military) arrangement. That is why ASEN countries resisted to US effort against their biggest trading partner China. In a way China's actions in SCS isn't primarily aiming at the islands but aiming to keep US out. Keeping US out of SEA is the security guarantee so ASEAN can dump USD without being bombed by US like Iraq. This is why even Philippine is not interested in resuming the island issues. It is also important to observe how Saudi Arabia can make the switch without being democratically and humanitarianly bombed or colored.
China like always will sent some veiled threat, SK will most likely back down on that idea. Otherwise
supercat
Major
It was claimed that the U.S. was not mentioned even once during Xi's speech at the 20th National Congress of CPC. Hence the following meme:
Xi is very competent both physically and mentally, unlike the other guy. The Western MSM will simply ignore this fact, of course.
Xi is very competent both physically and mentally, unlike the other guy. The Western MSM will simply ignore this fact, of course.
Sometimes, the best revenge is simply living better.
Damn, that's cold, it's like something you'd do to your ex-wife.
Borrell is old and considering the pressure he is facing in negotiations especially with neighbours to South you can expect him saying things to next generation to be wise. Biden is President. he can make statements not negotiate.