(Bloomberg) – All around the world, a backlash is brewing against the hegemony of the US dollar.
Fuck the dollar. Nobody knows why the Euro couldn’t do shit to supplant it.
Fuck the dollar. Nobody knows why the Euro couldn’t do shit to supplant it.
I was designed so that it could not. One primary mechanism is that there are stricter limits to money printing with Euro. One needs money surpluses to send to the world if one wished it to be used in third party trade.
It s been at least 50 years I’ve been reading that !
Meanwhile I know people in China who are very desperate to get their hands on USD, CAD, EUR, GBP etc.
Anedoctal evidence I know but I have a friend who has strained relations with his relatives in China because he refused to launder if you would call it that money. I think each person has a limit on the amount of money transferred.
I mean these people have never left China, why the hell do they need USD. Make what you wish but until the yuan becomes attractive to their own people other currencies are of no threat.
Because there are limits to how much money you can take out of China, and whenever there’s a limit there’s people trying to circumvent them? It’s not rocket science.
Yes but that doesn’t explain why they would need USD. For example I’ve only exchanged USD once and that was because I was going to a country where it was the legal tender.
I didn’t exchange my life savings for it, 50,000 a year limit is high for someone who hasn’t left China. I haven’t even exchanged 10,000 in my lifetime let alone 50,000. I just keep it in AUD, USD is useless here.
So it points to me that they don’t trust their currency which is what I’m getting at. A currency needs to be trusted by the countries people itself before it can be a threat to any of the established currencies.
This is why Obama wanted to end the Iran sanctions. Weaponization of the dollar is hurting US economy on the long run as more more country seek alternative methods of payment.
The only reason some of these countries are pushing for this is because they would like to be able to do what Russia did in Ukraine, without consequences.
Or they see that US has a economical nuclear bomb in the dollar and it’s increasingly more reckless in it’s use and they naturally want to isolate their economies from the fate that Washington just decides that they are not “free”, “democratic” or somehow against US interest and decide to unilaterally sanction them and keep wrecking their economy until US demands are met. You do know that third of world’s countries are under some sort of US sanctions and very few of them were or are on war footing towards anybody. World wants out of the dollar because US is no longer seen as reliable.
All of these countries are either failed democracies or dictatorships. Not sure where you are from, but it’s in my interest that democracy remains strong. If that means sanctioning non-democratic countries when they want to undermine democracies, then so be it.
With how flawed the US democracy is and with how often the US undermines democracy in especially south America. What the US understands as a danger to democracy is more often than not a danger to neoliberalism, Cuba gets sanctioned while Saudi Arabia is embraced doesn’t really speak for the pursuit of furthering democracy.
Also the US has no one actually holding it accountable internationally, just because of military and economic might, so their leaders seem to think their forgein policy is reasonable, while it mostly is a disaster. Sure in Ukraine they are supporting a war where they have justifiable reason to do so, but this recently hasn’t been the case in Afghanistan, Iran and Iraq or Vietnam earlier. Militarily forcing democracy and/or neoliberalism on countries doesn’t really work.
