Posted on 02/28/2022 7:33:51 AM PST by Diana in Wisconsin
Built by Indian software developers.
Let me rephrase that..."garbage" built by Indian software developers.
Seriously, they have cost US companies more money in reworked efforts than just about anything else in the last two decades.
War and conflict always have a financial and market component, and an effect on those components.
There is less trust and faith placed in the American government and Federal reserve than ever before, by ordinary people.
We'll see what happens.
Let's see. Pretend I'm the leader of a country.
Do I want to base my trade deals on a currency that nations (including Russian citizens right now) will literally fight to protect access to?
Or do I want to base my trade deals on garbage code some Indians hacked together in their slums, that represents factory nations who depend on buying nations to even survive?
Decision, decisions...
Many don’t seem to understand that if the dollar got weak, a good bit of that factory activity would return to the US. China DOES NOT want that to happen. They are already having fits over supply chains getting yanked.
There should be - but the exact opposite is true right now. Look at the DXY against a basket of other currencies. It's not the "toilet paper" that some would have others believe.
Is debt-based currency evil? Yes. But it's the strongest debt-based currency in the world - by far.
Hence their peg to the US dollar.
Nobody in the US is going to buy Chinese garbage products constructed of polluted melamine if the price of that product begins to equal a better product made in the US.
“Right now dollars are held tighter than bitcoin and bitcoin has remarkable returns over than past decade and the dollar is flat vs gold, silver, oil.”
If bitcoin were ever to become the reserve currency, one ‘coin would be worth millions.
And yet we keep hiring Indians here, over our US citizens.
That tide is beginning to turn in companies who are waking up to reality.
It doesn't sound nice to say, but the Indian culture has no problem with lying and manipulating to achieve their goals.
Most Indian resumes are complete fabrications, and many of them cheat on interviews.
I know. I've interviewed a great many of them.
Russia could start demanding energy payments from Europe in gold. They have plenty of leverage. But I agree with the author’s hypothesis that the Greens operating Biden wanted this result. There are too many parties with an interest in destroying the petrodollar.
I’ve read that we have thousands of US doctors that can’t get a residency because we import thousands of foreign trained doctors instead.
China produces the worlds goods. They have a lock on rare earth metals. Their manufacturing is incredible. They produce more PhD’s each year than we have total in the united states. When they take back Taiwan, they’ll control 90% of the world’s chips. You want chips or rare earth metals or any of the Chinese crap you buy at Walmart, they’re going to be paid in China’s new digital currency. That’s their plan. The US doesn’t have a plan except to print money and expand CRT and AGW hysteria.
Would you sign up with a system run by the mafia?
I called it.
Neither country needs the US. Especially with a child groping pervert as president. Russia shits off the gas and Europe freezes. China shits off everything, including Taiwanese chips after Biden lets them invade, and that’s it for decades. No more mean tweets though .
Apparently the author pays zero attention to the bond market and banking system of any of these countries. Otherwise this would be seen as the nonsense that it is.
“Sounds like the systems are already up and running. Just depends on how many countries sign up.”
The Yuan is not freely traded. It’s pegged to the dollar. China does not have a transparent financial market. It does not have the enormous liquid market of US Treasury paper backing it up. All of this and more is needed for it to ever be considered a reserve currency and it’s not remotely close.
A modern reserve currency is of necessity mostly backed not by gold but by the legitimacy and reliability of a large, developed economy with an immense chain of proper accounting practices and ledgers. These assure that no one can create more currency and manipulate currency values on the sly.
Yet, even if a prospective global reserve currency is issued by a sufficiently large economy and has books that are honest and transparent and skilled manager in its central bank and treasury, much more is required of a prospective alternative to the dollar.
An alternative reserve currency must, like the dollar, be backed by an issuer that is politically stable, reliable in its agreements and undertakings, and culturally, politically, militarily, and economically dominant. The alternative reserve currency issuer also needs a combination of allies and international institutions that come to the aid and rescue of nations that intend to rely on the dollar alternative. This is where the EU and the euro fall short.
In practice, a dollar reserve reliant country that is friendly to the US benefits from a wide range of assurances and benefits from the US and its allies. They get access to aid and loans. They get access to the US and world economy on fair, even beneficial terms. Their people can travel to the US and enjoy its domestic amenities.
When troubles arise, the US and its allies will help. Not just disaster and emergency assistance, but a range of loans and grants on good terms. They also get the political, diplomatic, and military might of the US against the depredations of aggressive neighbors or internal insurgencies.
There is no 911 for countries to call, but the next best thing is that the leaders of a dollar reserve country friendly to the US can call for help and it will arrive. That is why we have a large, capable blue water navy with a massive fleet of aircraft carriers and an Army and Air force that can project power around the globe. Among other reasons, our armed forces help protect the value of the dollar by protecting the dollar's friends when they are imperiled.
What does the US get in return? The dollar's users around the world invest in Treasury securities -- which means that they finance our massive public debt. Above all, they finance Medicare, the largest single federal expenditure. Indirectly, the young men and women of our armed forces are helping to keep their grandparents healthy and housed against the burdens of age.
For all that Russia and China and the EU might envy the dollar, none of them are capable of replacing it. Above all, no one with a lick of sense trusts Russia and China not to engage in exploitative and predatory conduct at every turn if they had the world's primary currency. So the dollar endures.
*APPLAUSE* :)
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