De-dollarization will be a vicious cycle as hyperinflation leads to higher rates that will further erode the greenback's power, think tank says

https://markets.businessinsider.com ^ | Aug 7, 2023, 2:16 PM EDT | Jennifer Sor

[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.

[MarMema]

Brics has discussed a currency, but currently the drive of Dedollarization is a multipolar world. They want to stop us from weaponizing the dollar.

Its like one of those feel good movies where all the kids in class get together as a team to take down the bully.

"The BRICS countries have different relationships with the U.S., socio-economic challenges, and political systems, but they're united in their belief that the post-Cold War's U.S.-led unipolar world order must urgently be reformed for the betterment of mankind."

https://news.cgtn.com/news/2022-06-24/BRICS-role-in-the-global-systemic-transition-to-multipolarity-1b7pApI2CKQ/index.html

[lodi90]

What will happen will happen. I’m not going to die twice
once for real and once while I obsess over it.

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Yep. This Anti American “dedollarization” claptrap is a classic Bolshevik FUD gaslighting psywar campaign. Once you understand what it is it is easy to ignore it.

[Right_Wing_Madman]

I’m not going to die twice once for real and once while I obsess over it.

If you get out of the house before the roof caves in, you'll only have to die once. However, the timing part is always tricky.

In the Great Depression, many people died twice.

[citizen]

For much of the world, U.S. economic & military policy, post-gold standard, put the ugly in the term Ugly American.

[datura]

No, our tourists do that. Quite handily.

[DoughtyOne]

Thanks. I know it’s a view shared by many people.

[DoughtyOne]

I think you’re right.

BRICs was a nice interim scare, but I’m not convinced it will
win out.

What we do need to do is take a look at things, and start
getting earnest about paying down this debt.

We can do it if we put our mind to it.

[DoughtyOne]

It is an old concept, probably taught thousands of years
before that.

Core truths remains truths.

Just don’t fall of the turnip truck and go woke. Smile...

[DoughtyOne]

Thanks. I know it’s a view shared by many people.

[DoughtyOne]

Yeah, that’s right.

[DoughtyOne]

Thanks. I know it’s a view shared by many people.

It’s old as the hills too.

[DoughtyOne]

We can turn all that around.

We just haven’t decided to.

Even what is going on in our schools. What’s going on there
won’t be after six months of Trump.

[DoughtyOne]

No, I have faith in our nation.

Things are cyclical. We will swing back more toward our roots
at some point.

Biden and his clowns are having their day. That day will come
to an end at some point, one way or another.

He will be seen as a very vile evil destructive man.

[DoughtyOne]

I pretty much agree with that. There’s one hell of a lot of
disinformation out there these days. If it’s terrible, I
consider it to be very likely it’s agitprop.

I didn’t think the BRICs thing was going to take off, but
you never know. I go with my gut and expect to be
surprised from time to time.

Take care...

[Reverend Wright]

Everything you say is correct. In addition, the Eurozone does not have the size of the Treasury market. It is spread over many borrowers of variable quality.

Six months ago i would have agreed with you.

But the financial and diplomatic behaviour of the DC Regime has been so reckless, especially now that we know the US involvement about the Imran Kahn ouster (and the motivation!), the USA is now more of a political risk.

https://theintercept.com/2023/08/09/imran-khan-pakistan-cypher-ukraine-russia/

Not to mention the pipeline bombing. A Regime that would do that to its allies is capable of anything in terms of asset seizure.

The other thing I would point out is that many borrowers in the Eurozone were able to maintain negative interest rates for years, which shows a deep demand for that currency that even the US did not attempt.

[MarMema]

about the Imran Kahn ouster (and the motivation!),

---

Just saw that. Wow, wow.

I was shocked

[Brian Griffin]

Mr. US politician, can I record you saying “Make America Great Again”?

[Tom Tetroxide]

It’s going to be more like hyper-stagflation!

[Tom Tetroxide]

De-dollarization has been happening since 2001. In 2001 we had 74% of world's currency reserves. Today it stands at about 58%. All those dollars that have come back to the US has been a major driver of inflation.