Posted on 06/24/2025 9:34:57 AM PDT by delta7
Summary Gold seen as biggest winner from dollar diversification Euro seen top currency to benefit in short term - OMFIF survey Yuan favoured by central bankers over a longer time frame Reuters' sources see euro recovering some lost ground quickly Euro share of reserves likely to rise in next few years. LONDON, June 24 (Reuters) - The custodians of trillions of dollars of global central bank reserves are eyeing a move away from the greenback into gold, the euro and China's yuan as the splintering of world trade and geopolitical upheaval spark a rethink of financial flows. According to a report, opens new tab by the Official Monetary and Financial Institutions Forum (OMFIF) due to be…..
(Excerpt) Read more at reuters.com ...
Gold, yes. Euro & Yuan, makes no sense.
Trade deficits.
Think Europe or China will ever run deficits large enough for long enough to function as a reserve currency?
What is happening are barter deals: oil or some raw material to China who pays in Yuan and then the Yuan pay for imports from China. Or better, China makes big loans, Chinese and local officials enjoy a feast of embezzlement, and the country reneges on the deal.
Trading one failing, mismanaged fiat for another makes no sense. They can horde lumps of shiny metal if they want, I’ll go with bitcoin for its greater utility, fungibility, ease of use, lower TX costs, greater security via multisig, inability to counterfeit/fake, and more rigid scarcity.
China’s yuan, is that even real ? LOL
“Socrates nails it. “
LOL! S9crates socks!
He failed to predict his three bankrupsies.
He failed to predict his losing $700 million of his clients’funds.
He failed to predict he would spend eleven years in the federal pen.
In 2014 he predicted gold would soar to $5,000 in 2015.
In 2014 he predicted that there would be a world financial collapse would occur in 2015.
July 2024 he predicted US cIvil unrest/WAR to happen just before the 2024 elections.
November 2024 he predicted a US civil war would happen the week of Trump’s inauguration with the US breaking up into four new countries in 2026.
December 2024 he said via Socrates that the 2024 elections would be the last in the US.
January 2025 he predicted US civil unrest on May 7.
June, 2025: The EU is DONE – Ukraine Will Be Wiped off Map
March 15, 2025: Got suckered by fake story https://freerepublic.com/focus/news/4304515/posts?page=40#40
The Euro is silly.
A reserve currency is not based upon your ability to inflate it away. That’s exactly what got us into this mess. China and much of the world wants something more stable. They don’t wanna store their wealth in dollars and watch it’s value erode away by inflation which we used paper massive military and welfare programs.
soros and crew started pouring money and tech into china in the early 90s when the clintons took office.
we gave the chinese our manufacturing base and explained the upgrade. then the pc revolution gave them a huge bump... a bump that we never had in the US.
bringing back manufacturing will improve employment in the US while hosing the chinese a bit... but we’ll never match their manufacturing might.... which is the core component in a drone based war.
the next war, a drone war with china, is already lost.
and no, EMPs aren’t a silver bullet against hardened drones.
China's spending is even more out of control than ours: they just hide it better by laundering it through multiple banks and CCP owned firms and use their trade surpluses to subsidize the domestic economy.
“Socrates nails it”
What’s that? You talk like a gangster.
The U.S. Dollar Index (USD) is trading at 97.39 against a basket of foreign currencies.
97.39 is the lowest price since February 2022.
USD 100 is considered neutral.
Above 100 indicates USD strength.
Below 100 indicates USD weakness.
USD was trading at 109 in January 2025.
USD is down 9% in six months, which is a fairly large drop for a major currency.
Real Time quote...
Most are clueless. They will never pull up a “ history “….USD is in a decades decline…..decades ago 140…..then down to 120…now hitting under 100…70’s 80’s is already written.
Even the Yuan is also silly. There currency is no more stable than ours is.
Yuan makes some sense if one is trading with China and not relying entirely on it.
Euro has all the problems of the US Dollar only much more so.
The tariffs are having a large impact on their economy:
MERICS China Forecast 2025: Economic stress increases risk of domestic instability
The Great Unraveling of China's Economic Model
China’s Economic Growth Boosted By Stimulus? | World Business Watch WION
“USD is in a decades decline…..decades ago 140…..then down to 120…now hitting under 100…70’s 80’s is already written.”
The USD is in a long term rise from the low of 74 in 2009. And you know that since I have previously posted it to you the last time you posted from your copy/paste library.
Your chart shows:
Lots of steep drops.
The present value is about the same as it was 35 years ago.
“USD is in a decades decline…..decades ago”
About the same as it was 35 years ago!
But there’s value in diversification to a degree, as well as a longer-term bet on the economy.
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