Posted on 08/15/2023 7:38:32 PM PDT by RomanSoldier19
The use of the US dollar as a reserve currency is under threat — and the greenback is headed for a vicious cycle that will further erode its dominance, according to the Australian think tank the Lowy Institute.
That's because the declining use of the dollar could lead to hyperinflation, which would, in turn, lead to higher interest rates as central banks combat high prices. And those rate hikes will weigh on asset prices like stocks, researcher Michael Roach said in a recent op-ed for The Interpreter, a publication run by the think tank.
This outlook is furthered by speculation that BRICS nations could potentially launch a rival currency to the US dollar, backed by gold, Roach said, though such plans have been disputed. Nations like China, Russia, and Saudi Arabia have also started to shift away from use of the dollar in global trade, which could further weaken the dollar's dominance.
(Excerpt) Read more at markets.businessinsider.com ...
Hey! Just because we will no longer be able to “export” much if our inflation.
The Ruble is in trouble. China is struggling. I don’t think
any of these nations have the strength to pull off what they
want to. They still may do it, but it gets to the point that
some of this just seems like agitation.
If we’re not wringing our hands enough, they post more about
it as if it’s going to happen. Worry, worry more, worry
until you can’t do anything else...
What will happen will happen. I’m not going to die twice
once for real and once while I obsess over it.
Aye and Amen!
Yes, the USD doesn’t need to be perfect, it just needs to be the best out there.
None of these are serious rivals:
* Yuan
* Euro
* Ruble
* Bitcoin
* Gold
No sensible operation wants their money in anything other than USD.
“Cowards die many times before their deaths; the valiant never taste of death but once.” This quote is from William Shakespeare’s play Julius Caesar, in Act II, Scene 2.
I don’t see a whole lot of people in line converting their dollars to rubles and you can be very sure that nations are not converting their reserves from dollars to rubles or the currencies of BRICS economies.
>> I’m not going to die twice once for real and once while I obsess over it.
Good point.
Today?
Well said. The sky is still falling, only temporarily, but eventually it will. In the meantime, the soldier should go back to Rome.
lol. Funny but not.
hear hear!
“No sensible operation wants their money in anything other than USD.”
Countries or institutions who have had their $US assets seized, or think they are at risk, beg to differ.
I think the obvious competitor is the Euro. It’s nearly as large as the US economy, the FX crosses exist for every country in the world, and they don’t have the history of grabbing people’s assets, and threatening to do it more, even to allies.
The Euro is the strongest rival, but it was only a bit more than a decade ago it looked like the while thing could collapse.
It survived but there are some fundamental issues with a multinational currency that have not yet been resolved.
Short term it’s safe, but if you are writing a 20 year long contract, there are still worries about having it in Euros.
Why don’t we fight more unnecessary foreign wars WITH BORROWED MONEY?
They aren’t $184,000,000,000,000 in debt & sexually confusing and mutilating their childen. We are.
You’re joking, surely.
Gold has been money for 5,000 years and has gone up 7 fold against the dollar in the past 25 years.
Yes. If the world de-dollarizes, you’d have to pay the going rate for your country’s interest rates, instead of the favoured rates that your country currently pay.
It would mean, at least, a doubling of the interest rates. This means you’d probably pay about $1.5 trillion yearly interest, until you brought your debt down to something more manageable.
Let’s not discuss the possible quadrillions in hidden debt that might be brought to light in this time.
You sure do have a lot of faith in the Biden Regime and it’s leftist flying monkeys.
“Today?”
It is a bit late in the day but banks open in the morning and if you believe the ruble is the currency of the future, you can go buy 102 of them for each of your dollars.
For under $10,0000 you can be a Russian millionaire!
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