Why China & Its Trading Allies Are Well Placed To Topple The U.S. Dollar

The only reason the dollar is as stable as it is is because there is probably $100 trillion in circulation so a couple trillion more in fiat money doesn’t make a huge impact.

China is not dreaming about it, it is naturally happening. 150 countries have China as their main trading partner, including US. You can buy everything in Yuan. With the USD you are at risk of your assets stolen by the Fed at every moment.

You can buy everything in Yuan

Most all international trade is conducted in Eurodollars (US dollars).

There are very small agreements that have been made between some countries - primarily as a result of a shortage of Eurodollars and the global deflationary risk currently happening.

There's the old saw that the currency markets are like betting in a cockroach race. They're all hideous, but some are more hideous than others. It's the same here.

A candidate for a global reserve currency must meet certain criteria. Obviously, the currency must represent a big part of the world's economy, but even more important is that the government(s) representing that part of the global economy are stable.

The USA is, despite all of its problems, the most stable of all of the possible contenders. The USA has a huge economy representing a major part of the world's GDP. The USD is a cockroach, but it's clearly the prettiest cockroach of all.

Even the Euro, the runner up for global reserve currency, is less stable - given BREXIT and all the other countries ticked off about rule from Brussels. The EU has a huge economy, and a good deal of stability, but it's not as stable as the USA, at least not yet (although we're getting there). (p) The Euro is a much prettier cockroach than the BRICS currency. Think of all the instability inherent in that acronym. A BRICS currency would surely be the ugliest cockroach imaginable.

Just off the top of my head - Brazilian society is extremely divided between the white south and the black north. The white south is first world, the black north is a third world sh*thole. The politics are always on the verge of a military takeover. Instability is baked in the Brazilian cake.

Russia - what can I say? Russia is a second rate economy governed by a kleptocracy surrounded by enemies, including the European Union and NATO and China. They have huge internal insurrectionist populations, most of them led by radical Muslims.

Russia and China fought a war 50 years ago in Khabarovsk. China have has historical irredentist claims for all of Siberia and Central Asia. India and China actually were shooting at each other two years ago because China is trying to dam the headwaters of the Ganges River, sacred to Hindus. China has huge demographic problems.

South Africa? Seriously? South Africa will contribute to the stability required for a BRICS global reserve currency?

It's silly, really. I get hating GloboHomo but let's not let that blind us to reality. BRICS will never be a thing.