[BRICS+ accounts for 40% of the world’s population, 25% worlds GDP.
And growing.
FED Bankster fiat dollar is very close to the end of its long history. Piss be upon it. See N.E.S.A.R.A. (National Economic Security and Reformation (i.e., Recovery) Act)]
The principal reason they don’t want anyone hoarding their currencies? It causes their currency valuations to go up, which in turn results in their exporters becoming less competitive. Net impact being massive trade deficits of the kind the US is running. That, ultimately, is why the dollar is the reserve currency of choice among the major developed country currencies - the US doesn’t actively impose costs on the people hoarding the dollar.
Now, the US dollar’s dominance in international trade isn’t just the result of the nation’s relatively laissez faire attitude towards dollar hoarders. Another reason is the US’s significant role as a major international provider of goods and services. Pfizer, J&J, Coca Cola, McDonalds, Microsoft, Google, Intel, Qualcomm, Apple, Boeing, Procter and Gamble and Caterpillar are just a few of the household names in Russia and India with few comparable Russian or Indian counterparts in the US.
Soviet propaganda made the dollar out to be some kind of yoke around the necks of the people who hoard it. That’s the beauty of Russian agitprop - to its audience, its asylum-grade insanity can’t possibly be a lie. Here’s the reality - in real life, people don’t hoard rubles or rupees - they hoard dollars. Not because they like Americans or America, but because in real life, Russia and India are just backwater economies run by morons who think the sun shines out of their rear ends.
The history of Russian and Indian exchange rates makes the dollar look like a summer breeze compared to a raging tornado in the midst of an earthquake.
https://en.wikipedia.org/wiki/Soviet_ruble#Exchange_rates
https://en.wikipedia.org/wiki/Russian_ruble#Exchange_rates
https://en.wikipedia.org/wiki/Exchange_rate_history_of_the_Indian_rupee
Thanks for the sane post.
As long as China wants to run a trade surplus with the US they will need to peg the Yuan to the dollar to maintain parity in the exchange rate. The US trade deficit, floating exchange rate, and strong dollar allows US consumers a higher standard of living than those countries that depend on trade surpluses. Trade demand forces the exporting country to produce goods and services they can’t consume locally making them less available and more costly to their citizens.
China’s wage rates are steadily increasing and they expect to be a net importer (trade deficit) in the near future. They will also need to drop the dollar peg on the Yuan and float their exchange rate allowing their currency to reflect China’s true productivity relative to foreign countries which is not the case now.
Sorry, dear, but even if partially true, your post ignores some important aspects of the dollar as a reserve currency.
First, it allows feds to export inflation, hence ruble and rupee aren’t always in a good shape, and not because of the fact that their fiscal authorities are less disciplined than that of the US.
Second, dollar is indeed a yoke at this point. The weaponization of commerce by Congress makes literally anything else preferable to it as a tool of international commerce. Who wants to trade in dollars when they can be frozen in any given moment? The same is true regarding US-sourced goods and services.
There is a cost in having a reserve currency, true, but it is going to be much costlier to lose it.