All Sovereign nations have taken note, and it appears there is nothing President Trump can do to stop it.
China’s and the Greatest Ponzi scheme ever
This is mainly for sanctioned countries like Russia, Iran and Venezuela. The problem with a currency like the yuan is capital controls. An international currency with these controls is a contradiction in terms. Mark Mobius, a legend in emerging markets mutual funds, had trouble getting his money out of China. People large sums in yuan want to switch out of the currency immediately.
Not just Joe. The process started in 1980, when America stopped being a creditor nation.
America and Canada had until about 2005 to fix their finances without pain. Now, there will be a lot of pain. The longer it takes us to start, the more paid we will have to go through to fix it.
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Sure. Why not trust a yuan currency mechanism and having your their transaction ledgers controlled by China?
This will be the most consequential result of the Biden administration’s $Multi-Billion dollar foreign policy debacle which resulted in hostilities in Ukraine. It never would have happened if President Trump had not been cheated in the 2020 election.
Jackasses will blame BRICS, but the dollar isn’t a safe haven anymore. It once was “almighty,” until we weaponized and devalued it with outrageous spending on warmaking and socialism.
Even doctors and PLUMBERS don’t want dollars, unless it’s lots and lots of them. Who can blame foreign investors for running away from it? I don’t want dollars, and get them out of the bank into something real as soon as possible.
Instead of getting mad at BRICS, dummies should start turning dollars into hard assets, becoming self sufficient and getting ready for MUCH less buying power, or even possible systemic failure.
Lowering tariffs on bananas won’t help much.
All Sovereign nations have taken note, and it appears there is nothing President Trump can do to stop it.
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Trump is now saying there is 20 trillion dollars worth of new investments coming into the USA.(byo of comparison a total of 1 trillion dollars worth of new capital investments were made during the biden years.) So I’m not so sure that it matters. The aim is to return home much of the USA manufacturing base that has migrated overseas in the last 50 years. As well, the object is to first bring the trade deficit back into balance and then when the US masters the tools of the next industrial revolution—run up export surpluses.
What we’re seeing rather is a rebalancing. We’re also going to see GDP gtowth o 5% plus for years to come. Restraining federal spending is what they are doing now. The growth and the explosion in the stock market AND new tarriff revenue is going to bring trillions into the federal coffers and balance the federal budget by late 2027.
Pretty much the same thing happened in the late 1990’s. The feds under newt gingrich restrained spending while the economic growth and stock market expansion poured money into the federal government and balanced the budget.
When the stock market boom abated in 2021—the federal budget went back into deficit again. This time the boom will have more legs because there is an industrial revolution behind it.