(Bloomberg) – All around the world, a backlash is brewing against the hegemony of the US dollar.
Fuck the dollar. Nobody knows why the Euro couldn’t do shit to supplant it.
Fuck the dollar. Nobody knows why the Euro couldn’t do shit to supplant it.
I was designed so that it could not. One primary mechanism is that there are stricter limits to money printing with Euro. One needs money surpluses to send to the world if one wished it to be used in third party trade.
The only reason some of these countries are pushing for this is because they would like to be able to do what Russia did in Ukraine, without consequences.
Or they see that US has a economical nuclear bomb in the dollar and it’s increasingly more reckless in it’s use and they naturally want to isolate their economies from the fate that Washington just decides that they are not “free”, “democratic” or somehow against US interest and decide to unilaterally sanction them and keep wrecking their economy until US demands are met. You do know that third of world’s countries are under some sort of US sanctions and very few of them were or are on war footing towards anybody. World wants out of the dollar because US is no longer seen as reliable.
All of these countries are either failed democracies or dictatorships. Not sure where you are from, but it’s in my interest that democracy remains strong. If that means sanctioning non-democratic countries when they want to undermine democracies, then so be it.
With how flawed the US democracy is and with how often the US undermines democracy in especially south America. What the US understands as a danger to democracy is more often than not a danger to neoliberalism, Cuba gets sanctioned while Saudi Arabia is embraced doesn’t really speak for the pursuit of furthering democracy.
Also the US has no one actually holding it accountable internationally, just because of military and economic might, so their leaders seem to think their forgein policy is reasonable, while it mostly is a disaster. Sure in Ukraine they are supporting a war where they have justifiable reason to do so, but this recently hasn’t been the case in Afghanistan, Iran and Iraq or Vietnam earlier. Militarily forcing democracy and/or neoliberalism on countries doesn’t really work.
Not sure why you are bringing up all the wars the US has been involved with or what US’s foreign policy is. I’m not from the US and never said I agreed with their behaviour. I do, however, agree with protecting democracy through economic or military means.
The sanctions on Russia are deserved. Trying to apply those same sanctions to China would be incredibly difficult, especially because Europe wouldn’t back them.
Of course, if the US went to war because China attacked an ally, and they were invited to defend against an invasion, that changes the calculation. The aggressor bears the brunt of international sanctions.
Where were sanctions when American thugs raged 20 years of war in the Middle East?
Meanwhile I know people in China who are very desperate to get their hands on USD, CAD, EUR, GBP etc.
Anedoctal evidence I know but I have a friend who has strained relations with his relatives in China because he refused to launder if you would call it that money. I think each person has a limit on the amount of money transferred.
I mean these people have never left China, why the hell do they need USD. Make what you wish but until the yuan becomes attractive to their own people other currencies are of no threat.
Because there are limits to how much money you can take out of China, and whenever there’s a limit there’s people trying to circumvent them? It’s not rocket science.
Yes but that doesn’t explain why they would need USD. For example I’ve only exchanged USD once and that was because I was going to a country where it was the legal tender.
I didn’t exchange my life savings for it, 50,000 a year limit is high for someone who hasn’t left China. I haven’t even exchanged 10,000 in my lifetime let alone 50,000. I just keep it in AUD, USD is useless here.
So it points to me that they don’t trust their currency which is what I’m getting at. A currency needs to be trusted by the countries people itself before it can be a threat to any of the established currencies.
Purchase of foreign property, usually.
Again not sure what foreign property would do for them when they haven’t left China and have no plans to do so. They’re almost at retirement age so if they haven’t made any plans…
So the other half of this story was they went around to all their relatives who are based overseas and got them to “store” converted currency in GBP, USD, CAD etc. If it was me I would be converting to the place I’m interested in residing not just anything I can get my hands on.
The other relatives weren’t smart enough or was too under pressure to say no. Also someone storing currency in your name rather than their own even as a relative causes tax issues at the very minimum and other issues if the money has come from a non legitimate means (I’m not inferring this is what happened just saying the worst case scenario on why you shouldn’t deposit money from someone else)
It’s almost always investment/for children’s education/etc.
