If I were China and Russia, I would be running from Dollars and Euros as fast as I could go.
Russia holds huge amounts of Euro debt, and 300 billion of US debt. They also have a large amount of dollars and euros in reserve that they want to discharge.
Brazil, India, Iran, Saudi Arabia, Venezuela, Syria, Bolivia, and other nations are also seeking to get rid of much of their dollar and euro holdings.
Euro, yes. USD, no. There’s simply too much cash floating around for both the EU and the USD to tank. CDN and AUS won’t be able to soak it all up.
Commodities? Sure, but there’s actually decline on the demand pressure. This has me really nervous. Sure people are stocking up, but there comes a point when everyone who is stocked up has enough and they don’t need anymore.
Sure China can spike commodities prices, but that will hurt them more than anybody else because they are the largest consumer outside the US. If they dump all their holdings in USD, the Chinese consumer is going to break.