They can't smash down everybody, at least not at once.
Renminbi (RMB)/Yuan Appreciation & Internationalization
- Thread starter supercat
- Start date
They can't smash down everybody, at least not at once.
Remember again why de-dollarization is important. It has people like Marco Rubio completely panicked. China may get all the hate, but India and the Middle East won't escape the neocon wrath
Will you look at that, central banks continue to sell treasuries even with the rate hikes
I think again, the implication of Saudis adopting a "Saudi First" strategy is settle energy trade in currencies that will allow them to compete better in the world stage, which means in RMB and INR in the future.
Will you look at that, central banks continue to sell treasuries even with the rate hikes
I think again, the implication of Saudis adopting a "Saudi First" strategy is settle energy trade in currencies that will allow them to compete better in the world stage, which means in RMB and INR in the future.
China’s yuan has replaced the US dollar as the most traded currency in Russia, a year after the invasion of Ukraine led to a slew of Western sanctions against Moscow.
The yuan surpassed the dollar in monthly trading volume in February for the first time, and the difference became more pronounced in March, according to data compiled by Bloomberg based on daily transaction reports from the Moscow Exchange. Before the invasion, the yuan’s trading volume on the Russian market was negligible.
According to Alfa-Bank, some Belarusian banks are switching from dollars to yuan. So far, this option is available for currency settlements in the MasterCard system. In short, if the currency of the card and the currency of the transaction do not match, then when paying with MasterCard, there will be an additional conversion - via Chinese Yuan (CNY)..
That's true. American giant Ponzi scheme and the economy will last as long as they could print enough new money out of thin air to repay old debts, they don't need any other injectors of liquidity. The FED alone is enough, it prints and then buys everything, government, corporate, and municipal bonds, and possibly even helicopter money in the future, injecting liquidity into the economy, without causing ultra hyperinflation.
And that can run as long as there is demand for dollars abroad. The dollar is the key, not the foreign holders of US Treasuries, maybe the foreign holders of dollar reserves are more important. But the rest of the world, 85% of the human population is slowly ditching the dollar too and will trade in their own currencies alongside throwing them out of their CB's foreign reserves. They have no fear of collapsing America anymore, and neither do they have any positive emotions toward it. Why should they keep the Ponzi running?
There is no reason why they should all be paying the cost of American inflation, for fat and lazy Americans to enjoy their wealth and even sanction them all while telling them how they are "shitholes" because they don't support enough LGBTQ+ rights and don't have enough "freedoms".
At this point is better for the world to feel short-term pain from the financial system collapsing, and the dollar collapsing, than to feel long-term blackmails, threats, and sanctions, from Americans who don't understand that the world is giving them a favor by using the dollar, and allowing them to be lazy and do nothing cause of that, it's not the other way around. They get more value if they trade in their own currencies. The dollar became the global currency because it had gold to back it up, but now they have nothing to back it up. Even the petrodollar system is ending.
And that can run as long as there is demand for dollars abroad. The dollar is the key, not the foreign holders of US Treasuries, maybe the foreign holders of dollar reserves are more important. But the rest of the world, 85% of the human population is slowly ditching the dollar too and will trade in their own currencies alongside throwing them out of their CB's foreign reserves. They have no fear of collapsing America anymore, and neither do they have any positive emotions toward it. Why should they keep the Ponzi running?
There is no reason why they should all be paying the cost of American inflation, for fat and lazy Americans to enjoy their wealth and even sanction them all while telling them how they are "shitholes" because they don't support enough LGBTQ+ rights and don't have enough "freedoms".
At this point is better for the world to feel short-term pain from the financial system collapsing, and the dollar collapsing, than to feel long-term blackmails, threats, and sanctions, from Americans who don't understand that the world is giving them a favor by using the dollar, and allowing them to be lazy and do nothing cause of that, it's not the other way around. They get more value if they trade in their own currencies. The dollar became the global currency because it had gold to back it up, but now they have nothing to back it up. Even the petrodollar system is ending.
yes there is- you do realize every dollar the FED prints to buy each UST goes to finance some form of US spending which eventually makes it out into the economy which ticks up inflation right?
There is both and art and science to how much the FED can and should print
As much as Japan is running trade deficit and fiscal deficit, Japan trade deficit is only a recent event. Unlike the US, Japan was running trade surplus for many decades before turning to deficit. Most Japanese companies are still bringing back money from overseas and most debt is still domestic owned. That's why BOJ can keep buying Japanese government bonds. It doesn't mean Japan isn't paying a price for such action. Japan's living standard has stagnant for many years and its GDP per capita has been half of its prime day.
Unlike Japan, the US has been running both trade and fiscal deficits for multi-decades. Dollar relative strengthen derives from its reserve status and safe haven as the most powerful country on earth. If other countries stop trading with dollars, then they don't need to accumulate dollars or dollar reserves. Without the constant inflow of investment from other countries, the Fed printing press would need to grind to a stop or otherwise paying the price of inflation and dollar devaluation.
Unlike Japan, the US has been running both trade and fiscal deficits for multi-decades. Dollar relative strengthen derives from its reserve status and safe haven as the most powerful country on earth. If other countries stop trading with dollars, then they don't need to accumulate dollars or dollar reserves. Without the constant inflow of investment from other countries, the Fed printing press would need to grind to a stop or otherwise paying the price of inflation and dollar devaluation.
I cannot believe people can look at Japan which has not grown in GDP in 30 years and see that as a good outcome for money printing and buying up your own debts. And that's with jgb yield at 0.5%
If USD devalues by 30%, American economic and military power will be significantly weakened around the world.
If USD devalues by 30%, American economic and military power will be significantly weakened around the world.