Posted on 01/09/2024 11:42:27 AM PST by delta7
De-dollarization is not a bad idea, considering our debt. The bigger issue is where do they go? There really isn’t anything out there that is any better.
The Peso will be King!
Start by listing the desired characteristics of a global trading currency, then identify what alternatives exist.
Truth is, there are none.
34 Trillion in debt with over a Trillion needed for interest payments. Why would anyone or any country be nuts enough to lend anything to the criminals infesting the District of Corruption?
Gold never gets old.
Start by listing the desired characteristics of a global trading currency, then identify what alternatives exist.
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You said it with your words- a currency backed by commodities and goods. Oil, energy, metals, food, Gold, etc…the US and Russia has the resources, however Russia beats the US in every sector. Brics has discussed ( and others) commodities based currency, not like the US which is currently based on debt.
The US could be the largest exporter, but Senike Joe and the Greens have shut it all down.
The dollar is covered with oozing boils, but the Yuan and Ruble have Stage 4 lung cancer.
The dollar is covered with oozing boils, but the Yuan and Ruble have Stage 4 lung Cancer
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Agreed, but that is today,but the pendulum swings. Times are changing, stay tuned.
Commodity_backed currencies are unstable.
Particularly the consumables.
Gold’s primary advantage was that it was inert, it didn’t spoil and it wasn’t used up.
But there’s nothing like enough of it.
So perhaps we should ask why do people use the dollar, rather than the Euro. What did the Euro do wrong?
EU has like the US a high debt. 85 percent of GDP, and rising. Not as bad as the US ( 130 percent). In short, remember England refused to use the Euro, for many reasons which will answer the question.
More:
https://www.bruegel.org/policy-brief/rising-cost-european-union-borrowing-and-what-do-about-it
Also realize Germany and other EU nations are suffering from senile Joe’s sanctions- Russias reverse sanctions have damaged heavily their manufacturing which depended on cheap Russian energy, commodities, metals, etc.
The future outlook for the EU manufacturing is bleak.
The reason the Euro fell out of contention as a reserve currency:
https://www.theguardian.com/world/2013/mar/25/cyprus-bailout-deal-eu-closes-bank
Not the only reason- Cyprus ( EU) started Bail-ins. They ruled the depositors loaned their money to the banks and ruled they were “ investors”. They were given stock in the failed banks instead of cash. Many think that can happen here.
Research Bail-ins, as the EU did it already most will not deposit large amounts into EU banks.
Others have noticed this, as well as pro Russian posters to ignore posting guidelines at will.
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