The death of the dollar?
POSTED BY: SIGNYM
UPDATED: Sunday, August 23, 2026 15:35
VIEWED: 15932
PAGE 1 of 2
I'm posting this here because I don't know what to make of it.
I'm used to ZeroHedge always posting about the end of the stock market, the end of the Fed, the end of the dollar, the end of financial system ... the end of something. Ditto gold bugs ... they have been saying (for years) that the dollar is way overvalued and is bound to crash.
But lately ... within the past month or so ... all of those "out there" analysts are only talking about ONE thing, and it's the (planned) end of the dollar. According to them, it's not Russia or China manipulating this, it's the IMF.
So, as best as I can gather, it's supposed to happen like something like this:
The Central Banks will start to sell the assets that they purchased as part of "quantitative easing". Our Fed is already reducing its "balance sheet".
There is going to be a period of debt settlements among nations ... old bonds, even defunct or fraudulent bonds being paid off to square the books. For some nations, there will be debt forgiveness.
The petrodollar will disappear from use. (It already is fading, as Russia, China and Iran are settling their oil and gas payments in yuan, rubles, gold, and rials. IF China insists on receiving yuan from Saudi Arabia, that will be the death knell of the petrodollar.)
The USA will be required to close many of its foreign military bases because it can no longer afford them.
Nations will be required to use the IMF "special drawing rights" (SDR) for international exchange. In other words, they will have to use their currency to purchase SDR from the IMF; the exchange rate will float.
Once the dollar is doesn't have special international significance as either the reserve currency or for oil purchases, demand for the dollar will drop, and so will its value relative to the SDR. There will still be the USD for national exchange, but not international exchange.
The result will be massive inflation in the USA for goods that are sold internationally, even if produced in the USA. I've heard that this will happen mostly in stages, not suddenly and catastrophically.
China will mostly be advantaged under this arrangement.
*****
Normally I would just kind of shrug my shoulders, but both Trump and Christine Lagarde (IMF) have made some strange out-of-place comments about this. Trump said that he would not accept this new currency. New currency?? Christine Lagarde hinted that the IMF might relocate to China because, as pointed out by someone else "China, unlike other nations, actually pays its pledges to the IMF".
I know that China has been hot to trot to be the next global currency. They lobbied mightily - and won- a place in the current IMF SDR basket (along with the USA, Japan, UK, and EU). China and Russia combined have set up a complete international alternate financial system - the Shanghai (and soon to be Hong Kong) gold exchange (London gold fix), the BRICS bank (World Bank), the AIIB (IMF), its place in the SDR basket.
Both China and Russia have been purchasing gold like crazy, and Putin supposedly just spoke with the person who developed the Ethereum model.
It seems to me that the dollar will be replaced as the world currency; it's inevitable. The only thing keeping the value of our USD up is our military- we literally have to bomb nations into using it by bombing those who attempt to avoid it (Iraq, Libya, Iran). If some nation were to come to us with a billion dollars, WHAT could we sell them for that money?? More Treasuries?? More weapons systems?? So, how much is our money really worth??
The question is really when (not if) that will happen, and how badly will our dollar be devalued? 1:3? 1:10? And what will the new world currency be? Will it be the IMF SDR?? Or will the world eventually settle on some alternate, like a gold-backed cryptocurrency?
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Good thing I have gold. Not that gold has any intrinsic value. But as a matter of exchange, people have to agree to use something. If it ends up being gold - or if gold buys rubles or yuan - then it's good to have gold.
Trump is not the problem. He set himself against the Deep State's agenda. And the Deep State's been heading for WWIII for years.
As for you, you're just a Deep State useful idiot, furthering its agenda. So I hope you enjoy cesium in your coffee. You've earned it.
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
This kind of has been my reasoning behind not really killing myself to work. People say, "but yeah... that's great, but shouldn't you be saving for retirement now?".
I don't think money as we know it will be worth much by then. There is going to have to be some sort of replacement or there will be riots and war and (at least I don't think) anybody wants that.
I just think a lot of people who think they are doing pretty well now are in for a rude awakening in the not-so-distant future. I think there are really only going to be the rich and the poor and very little in the area of gray.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Sooo much DERP in one thread.....
You know what Venezuelans have traded their life savings for?
Toilet paper. Ammo for thieves. Flour. Eggs.
You know what a mountain of gold won't buy when there is no food?
FOOD.
You really think you'll have more gold than others when it comes to bidding for the last...whatever...?
If you do, good for you...but, yeah...I doubt that. Seriously.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:It depends. If there is literally nothing left to buy ... anywhere on the planet ... then no amount of anything remotely resembling money will be enough. But we're not talking about that. We're talking about the fall of the USD specifically. It's a whole different topic.
You really think you'll have more gold than others when it comes to bidding for the last...whatever...?
Trump is not the problem. He set himself against the Deep State's agenda. And the Deep State's been heading for WWIII for years.
As for you, you're just a Deep State useful idiot, furthering its agenda. So I hope you enjoy cesium in your coffee. You've earned it.
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
I don't think gold is really going to help anybody out. When the shit hits the fan it's going to be a buyer's market. When they know that wheelbarrows of USD can't put food on the table and you're not eating they'll get that gold pretty cheap.
Then there's always other people wondering how you're getting food when they're starving. Won't take long for them to put two and two together and now you have people coming for you.
I think in the new economy the skills you have will be much more valuable than shiny trinkets.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by SIGNYM:
I'm posting this here because I don't know what to make of it.
I'm used to ZeroHedge always posting about the end of the stock market, the end of the Fed, the end of the dollar, the end of financial system ... the end of something. Ditto gold bugs ... they have been saying (for years) that the dollar is way overvalued and is bound to crash.
But lately ... within the past month or so ... all of those "out there" analysts are only talking about ONE thing, and it's the (planned) end of the dollar. According to them, it's not Russia or China manipulating this, it's the IMF.
So, as best as I can gather, it's supposed to happen like something like this:
The Central Banks will start to sell the assets that they purchased as part of "quantitative easing". Our Fed is already reducing its "balance sheet".
There is going to be a period of debt settlements among nations ... old bonds, even defunct or fraudulent bonds being paid off to square the books. For some nations, there will be debt forgiveness.
The petrodollar will disappear from use. (It already is fading, as Russia, China and Iran are settling their oil and gas payments in yuan, rubles, gold, and rials. IF China insists on receiving yuan from Saudi Arabia, that will be the death knell of the petrodollar.)
The USA will be required to close many of its foreign military bases because it can no longer afford them.
Nations will be required to use the IMF "special drawing rights" (SDR) for international exchange. In other words, they will have to use their currency to purchase SDR from the IMF; the exchange rate will float.
Once the dollar is doesn't have special international significance as either the reserve currency or for oil purchases, demand for the dollar will drop, and so will its value relative to the SDR. There will still be the USD for national exchange, but not international exchange.
The result will be massive inflation in the USA for goods that are sold internationally, even if produced in the USA. I've heard that this will happen mostly in stages, not suddenly and catastrophically.
China will mostly be advantaged under this arrangement.
*****
Normally I would just kind of shrug my shoulders, but both Trump and Christine Lagarde (IMF) have made some strange out-of-place comments about this. Trump said that he would not accept this new currency. New currency?? Christine Lagarde hinted that the IMF might relocate to China because, as pointed out by someone else "China, unlike other nations, actually pays its pledges to the IMF".
I know that China has been hot to trot to be the next global currency. They lobbied mightily - and won- a place in the current IMF SDR basket (along with the USA, Japan, UK, and EU). China and Russia combined have set up a complete international alternate financial system - the Shanghai (and soon to be Hong Kong) gold exchange (London gold fix), the BRICS bank (World Bank), the AIIB (IMF), its place in the SDR basket.
Both China and Russia have been purchasing gold like crazy, and Putin supposedly just spoke with the person who developed the Ethereum model.
It seems to me that the dollar will be replaced as the world currency; it's inevitable. The only thing keeping the value of our USD up is our military- we literally have to bomb nations into using it by bombing those who attempt to avoid it (Iraq, Libya, Iran). If some nation were to come to us with a billion dollars, WHAT could we sell them for that money?? More Treasuries?? More weapons systems?? So, how much is our money really worth??
The question is really when (not if) that will happen, and how badly will our dollar be devalued? 1:3? 1:10? And what will the new world currency be? Will it be the IMF SDR?? Or will the world eventually settle on some alternate, like a gold-backed cryptocurrency?
I don't see anything here that is news. This was already known before Obam
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
The next step in dollarization:
Quote:
De-Dollarization Accelerates: China Readies Yuan-Priced Crude Oil Benchmark Backed By Gold (Sept 3)
The world’s top oil importer, China, is preparing to launch a crude oil futures contract denominated in Chinese yuan and convertible into gold, potentially creating the most imporThe world’s top oil importer, China, is preparing to launch a crude oil futures contract denominated in Chinese yuan and convertible into gold, potentially creating the most important Asian oil benchmark and allowing oil exporters to bypass U.S.-dollar denominated benchmarks by trading in yuan, Nikkei Asian Review reports.
The crude oil futures will be the first commodity contract in China open to foreign investment funds, trading houses, and oil firms. The circumvention of U.S. dollar trade could allow oil exporters such as Russia and Iran, for example, to bypass U.S. sanctions by trading in yuan, according to Nikkei Asian Review.
To make the yuan-denominated contract more attractive, China plans the yuan to be fully convertible in gold on the Shanghai and Hong Kong exchanges.
Last month, the Shanghai Futures Exchange and its subsidiary Shanghai International Energy Exchange, INE, successfully completed four tests in production environment for the crude oil futures, and the exchange continues with preparatory works for the listing of crude oil futures, aiming for the launch by the end of this year.
“The rules of the global oil game may begin to change enormously,” Luke Gromen, founder of U.S.-based macroeconomic research company FFTT, told Nikkei Asia Review.
The yuan-denominated futures contract has been in the works for years, and after several delays, it looks like it may be launched this year.
Some potential foreign traders have been worried that the contract would be priced in yuan.
But according to analysts who spoke to Nikkei Asian Review, backing the yuan-priced futures with gold would be appealing to oil exporters, especially to those that would rather avoid U.S. dollars in trade.
“It is a mechanism which is likely to appeal to oil producers that prefer to avoid using dollars, and are not ready to accept that being paid in yuan for oil sales to China is a good idea either,” Alasdair Macleod, head of research at Goldmoney, told Nikkei.
tant Asian oil benchmark and allowing oil exporters to bypass U.S.-dollar denominated benchmarks by trading in yuan, Nikkei Asian Review reports.
The crude oil futures will be the first commodity contract in China open to foreign investment funds, trading houses, and oil firms. The circumvention of U.S. dollar trade could allow oil exporters such as Russia and Iran, for example, to bypass U.S. sanctions by trading in yuan, according to Nikkei Asian Review.
To make the yuan-denominated contract more attractive, China plans the yuan to be fully convertible in gold on the Shanghai and Hong Kong exchanges.
Last month, the Shanghai Futures Exchange and its subsidiary Shanghai International Energy Exchange, INE, successfully completed four tests in production environment for the crude oil futures, and the exchange continues with preparatory works for the listing of crude oil futures, aiming for the launch by the end of this year.
“The rules of the global oil game may begin to change enormously,” Luke Gromen, founder of U.S.-based macroeconomic research company FFTT, told Nikkei Asia Review.
The yuan-denominated futures contract has been in the works for years, and after several delays, it looks like it may be launched this year.
Some potential foreign traders have been worried that the contract would be priced in yuan.
But according to analysts who spoke to Nikkei Asian Review, backing the yuan-priced futures with gold would be appealing to oil exporters, especially to those that would rather avoid U.S. dollars in trade.
“It is a mechanism which is likely to appeal to oil producers that prefer to avoid using dollars, and are not ready to accept that being paid in yuan for oil salesNOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:Have you been able to convince any of your "friends" to buy diamonds for exchange value?
Originally posted by 1kiki:
Good thing I have gold. Not that gold has any intrinsic value. But as a matter of exchange, people have to agree to use something. If it ends up being gold - or if gold buys rubles or yuan - then it's good to have gold.
>
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
LOL diamonds...
After you buy that engagement ring she could trade it in for a Big Mac and fries after the divorce.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Better a late post than never, I suppose ...
In another sign of de-dollarization, Venezuela is no longer accepting dollars for oil. It's pricing its oil in yuan instead. This goes along with the Iran-Russia deal which ignores the dollar, the Russia-China oil deal which excludes the dollar, and (more importantly) China's potential global move towards de-dollarization with the creation of the gold-backed yuan-based oil contract system. Since China is THE major oil importer, accepting oil from Russia and Saudi Arabia almost equally (Russia, China, Angola top three) http://www.worldstopexports.com/crude-oil-imports-by-country/ if China were to squeeze Saudi Arabia to accept yuan instead of dollar, that would be a major shakeup.
But I digress.
Whether or not this affects the dollar depends on Venzueula's size as an oil exporter.
Now, most people think of Venezuela (if they think if it at all) as a small starving oil-producing nation headed by a chubby socialist wanna-be with a funny mustache and preternaturally bushy hair 
But Venezuela is the nation with the highest amount of PROVEN RESERVES ... not Saudi Arabia, Canada, Iraq, Iran, or Russia. https://en.wikipedia.org/wiki/List_of_countries_by_proven_oil_reserves
Furthermore, according to recent statistics, Venezuela exports about one-fifth of Saudi Arabia's production (2,000 Kbbl/day (thousand barrels per day) to Saudi Arabia's 10,000 Kbbl/day) ...
https://tradingeconomics.com/venezuela/crude-oil-production
https://tradingeconomics.com/saudi-arabia/crude-oil-production
... a not-insignificant amount of oil. While Venezuela's production has been higher in the past and is currently hampered by lack of spare refinery parts (thanks to economic sanctions), Saudi Arabia's oil production appears to be pegged where it is. I recall hearing, about ten years ago, that the Saudi oil fields were already depleted ("ruined" was the term used) and are having to be recovered with aggressive fracking and water-injection techniques. It's not something I've heard again until lately ... the point being that Venezuela has a lot of future headroom to increase its oil production, while Saudi Arabia may not.
So USA and Saudi policy may be time-sensitive- can the USA kill the current Venezuelan government before Saudi Arabia runs out of oil or before the world turns away from the dollar?
Lavrov will be visiting Venezuela, Cuba, and Brazil (also a major oil exporter) soon. Brazil, as you may know, is embroiled in a continuing scandal in which the least-corrupt official (President Dilma Rousseff) was impeached, only to have her replacement - bank/business-friendly Michel Temer- be indicted in the ongoing "carwash" scandal himself.
You should read this ... it's a nightmare of corruption, and probably describes Washington DC pretty well too.
https://www.washingtonpost.com/news/worldviews/wp/2017/09/13/meet-the-
corrupt-jailed-politician-who-has-the-rest-of-brazils-political-elite-terrified/
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
And people wonder why I'm not busting my ass to save for retirement now that I own my home...
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Is this relevant to the topic, Jack? Do you have any facts or logic on the topic to contribute?
Trump is not the problem. He set himself against the Deep State's agenda. And the Deep State's been heading for WWIII for years.
As for you, you're just a Deep State useful idiot, furthering its agenda. So I hope you enjoy cesium in your coffee. You've earned it.
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by 1kiki:
Is this relevant to the topic, Jack? Do you have any facts or logic on the topic to contribute?
Question 1: Yes
Question 2: Nope. That is, nothing other than saying that saving money in your 401k might not lead to that wonderful retirement that they sell it to you as.
Guess you're being pissy with me still, huh Keeks?
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
EVEN SAUDI ARABIA IS GETTING INTO THE DE-DOLLARIZATION ACT
In order to understand the significance of that, you have to realize that it was the USA-Saudi deal under Nixon that created the "petrodollar" to begin with, and that Saudi Arabia has been THE cornerstone of the petrodollar for all of these decades.
Quote:Salman bin Abdulaziz Al Saud is said to be suffering from advanced dementia. The real power is with his son Crown Prince Mohamed bin Salman. Nonetheless, Salman bin Abdulaziz is still THE King of Saudi Arabia, and this is a real turning point in relations.
Russia, Saudi Arabia Announce Billons In Energy Deals, S-400 Missile System Purchase
Two days ago, when we previewed the first ever visit by a Saudi King to the Russian capital - a move which prompted Bloomberg to call Russian president Putin the "new master of the Middle East" - we pointed out that according to Russian Energy Minister Alexander Novak, a joint Russian-Saudi fund to invest in the energy sector will be announced during the forthcoming visit of the Saudi King to Moscow, and that the preliminary agreement to establish the $1 billion fund has already been reached.
Fast forward to today when diplomatic history was made on Thursday, when Putin met with the King of Saudi Arabia Salman bin Abdulaziz Al Saud - the first state visit to Russia by a reigning Saudi monarch
Quote:For comparison, total oil revenues for KSA are about $130 billion per year, depending on oil prices
- and the launch of a new level of relations between the countries, as well as billions in new energy-focused deals. The Saudi monarch's visit comes after decades of strained relations. More recently, tensions were high over the war in Syria. Russia and Iran have staunchly backed Syrian President Assad while Saudi Arabia has supported the Sunni rebels fighting to oust him. However, relations began to improve in recent years and Salman's heir, Crown Prince Mohammed bin Salman, has held several meetings with Putin.
There are also common points: the Saudi kingdom, much like Russia, has been hit by the fall in oil prices since mid-2014. Despite regional disagreements, the world's two largest oil-producers found common ground on energy policy in November, when they led a deal between OPEC and non-OPEC states to cut production in a bid to shore up crude prices. So far that deal is holding and prices have recovered slightly to above $50 a barrel. In an apparent reference to the output deal, Salman told Putin on Thursday that Saudi Arabia is "eager to continue the positive cooperation between our nations in the world oil market, which fosters global economic growth."
After the meeting, as noted before, the two countries launched a joint energy investment fund worth $1 billion
Quote:
which could include investments in natural gas projects and petrochemical plants. Among the deal signed, Saudi state oil firm Aramco, the world’s biggest energy company, signed a deal with Russian Direct Investment Fund (RDIF) and gas processing and petrochemicals company Sibur on joint projects in the area of oil refining. Amin Al-Nasser, Aramco chief executive said: "This marks a new milestone in business relations and partnerships with our counterparts in Russia. The visit by The Custodian of The Two Holy Mosques King Salman bin Abdulaziz Al-Saud to Russia will further enhance ties and will foster collaboration among Saudi and Russian companies on various fronts."
Aramco also signed a memorandum of cooperation with Russian state-owned oil company Gazprom Neft, to collaborate on drilling technologies and research and development areas, as well as employee exchange programs. According to the FT, Alexander Dyukov, chief executive of Gazprom Neft, said:
Given the ongoing macroeconomic uncertainties, it is of paramount importance that major oil producers coordinate their activities to improve the stability of the global oil and gas market. An important component of such engagement concerns sharing cutting-edgeNOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Russia may soon issue its own official blockchain-based currency, the CryptoRuble
https://techcrunch.com/2017/10/15/russia-may-soon-issue-its-own-offici
al-blockchain-based-currency-the-cryptoruble/
As the USA pushes the "sanctions" button harder, harming the economies of its presumed allies and partners (specifically the EU) they will have greater and greater motivation to defect from the USD as the world reserve currency and medium of exchange.
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Well, maybe. Or maybe not.
Quote:MORE AT http://www.zerohedge.com/news/2017-10-24/its-huge-story-china-launchin
"It's A Huge Story": China Launching "Petroyuan" In Two Months
China's plans for oil futures trading go back more than two decades, with the government introducing a domestic crude contract in 1993 and stopping a year later amid an overhaul of its energy industry. But in 2013, we first hinted at the birth of the petroyuan was looming...
In doing so China is effectively lobbing the first shot across the bow of the Petrodollar system, and more importantly, the key support of the USD in the international arena... setting the scene for the petroyuan.
And now, we are within two months of it becoming a reality as China prepares to roll out a yuan-denominated oil contract within the next two months...
"Approval of the trading rules by the securities regulator marks the clearance of a major hurdle toward launch of the contract," Li Zhoulei, an analyst with Everbright Futures, said by phone.
"The latest rules raised entry threshold for investors from the draft rules, which shows the government wants to avoid volatility when it first starts trading."
Which, according to Adam Levinson, of hedge fund manager Graticule Asset Management Asia, will be a “wake up call” for investors who haven’t paid attention to the plans.
A Yuan-denominated oil contract will be a “huge story” in the fourth quarter.
“The contract is a hedging tool for Chinese oil companies. We’re convinced Chinese oil companies will be anchor investors in the Aramco IPO.”
All of which fits with recent comments and actions from Russian and Venezuelan officials...
“Venezuela is going to implement a new system of international payments and will create a basket of currencies to free us from the dollar,” Maduro said in a multi-hour address to a new legislative “superbody.” He reportedly did not provide details of this new proposal.
Maduro hinted further that the South American country would look to using the yuan instead, among other currencies.
“If they pursue us with the dollar, we’ll use the Russian ruble, the yuan, yen, the Indian rupee, the euro,” Maduro also said.
Additionally, Levison warns Washington that besides serving as a hedging tool for Chinese companies, the contract will aid a broader Chinese government agenda of increasing the use of the yuan in trade settlement... and thus the acceleration of de-dollarization and the rise of the Petro-Yuan.
“I don’t think there’s any doubt we’re going to see use of the renminbi in reserves go up substantially”
g-petroyuan-two-months
Unless China insists on paying for Saudi oil with yuan or gold, this is just another brick in the wall, not "the" event which will collapse the dollar. China made a number of currency and financial moves, including funding the BRICS bank and the AIIB (Asia Infrastructure and Investment Bank), gold exchanges in Hong Kong and Shanghai, a petro-yuan-gold futures market, and (with Russia) a SWIFT-alternative banking backbone, and becoming part of the Special Drawing Rights (SDR) club at the IMF.
Altho the dollar has fallen in value since its peak (approx 1984)
it continues as the de facto standard for oil purchases (petrodollar) and reserve currency, partly because of weakness in the Euro. Part of this "lack of impact" from de-dollarization by China, Russia etc is that the economic and financial activities in the Eurasian arena don't pass through the BIS. For example, China's huge "one belt, one road" initiative doesn't factor into BIS calculations, and neither do the various oil-exchange agreements between Russia, Saudi Arabia, Iran, Venezuela and China, which are carried out either as barter or outside of BIS purview. What I expect is that the USD will continue to dominate wit
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
While you guys ... that means you: SECOND, THUGR, KRAPO, and GSTRING .... have been pulling your porks over everything Trump-Russia ... you've let one of THE major geopolitical events go completely by you ...
As I last posted
Quote:
It would take a major shock ... the institution of a new global reserve currency by the IMF (for example, the issuance of a crytpocurrency backed by SDR) to push the dollar out of a "gradual fade" mode.
Well, that major shock might be about to occur. Not only has China issued/ activated a new "petro-yuan" (backed by gold) ...
Quote:
Treasurys Tumble, Futures Slide On Report China "To Slow Or Halt" Treasury Purchases
The treasuries complex has sold off aggressively across the curve after the following flashing red Bloomberg headline:
- CHINA OFFICIALS ARE SAID TO VIEW TREASURIES AS LESS ATTRACTIVE.
- CHINA OFFICIALS SAID TO RECOMMEND SLOWING OR HALTING TSY BUYING
As Bloomberg reports, "Officials reviewing China’s FX holdings have recommended slowing or halting purchases of US Treasuries, according to people familiar with the matter."
What does this mean?
IF true, it means that the USA has lost it's "petrodollar"edge. Since having the world's reserve/ petrodollar currency is what allowed us to run a trade deficit for DECADES ... buying goods with "funny money", without having any PRODUCTION to back it up .... once our dollar loses that status, we will be standing naked and without a credit card in the realm of world economies.
Decline not going to happen right away. What that means is that the USA will have to raise its interest rates to attract investors in Treasuries. Higher interest rates will make stocks and real estate and cryptocurrencies look less attractive. Bubbles will pop ... or at least, deflate.
Fun times ahead.
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
America is an oligarchy
http://www.fireflyfans.net/mthread.aspx?tid=57876
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
This one is going to break their brains.
Of course, it will all be Trump's fault though.
No blame to be put on Obama here, and GWB is just way to far back to even remember.
Thanks for the Quantitative Easing though. Made the economy look good enough to enough people for long enough for nobody to notice there was a major problem until it was too late. 
At this point, I just say fuck it. Let the chips fall where they may.
Do Right, Be Right. :)
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:MORE AT https://www.bloomberg.com/news/articles/2018-03-08/how-china-is-about-
How China Is About to Shake Up the Oil Futures Market
By Sungwoo Park
March 7, 2018, 5:10 PM PST
From
China, the world’s biggest oil buyer, is opening a domestic market to trade futures contracts. It’s been planning one for years, only to encounter delays. The Shanghai International Energy Exchange, a unit of Shanghai Futures Exchange, will be known by the acronym INE and will allow Chinese buyers to lock in oil prices and pay in local currency. Also, foreign traders will be allowed to invest -- a first for China’s commodities markets -- because the exchange is registered in Shanghai’s free trade zone. There are implications for the U.S. dollar’s well-established role as the global currency of the oil market.
to-shake-up-the-oil-futures-market-quicktake
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
America is an oligarchy
http://www.fireflyfans.net/mthread.aspx?tid=57876
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Oh joy.
Maybe the Chinese oil investors will speculate so hard that a single barrel of oil shoots to $19,000 like Bitcoin.
Do Right, Be Right. :)
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
March 26: The Chinese petroyuan comes online.
Tick tock.
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
America is an oligarchy
http://www.fireflyfans.net/mthread.aspx?tid=57876
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by SIGNYM:
March 26: The Chinese petroyuan comes online.
Tick tock.
Wow, do you still want us to believe you're American. It's obvious you can't wait for this to happen. Hey I know, hold you breath until the dollar collapses comrade.
Hey sig, can you see me laughing? No really, can you see me laughing? Tell me sig, how does this help Russia?
T
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Ir wasn't China or RUSSIA!! that weakened the American dollar, but Washington DC and The Fed. Instead of hyperventilating about everything happening "over there", maybe you should have paid more attention to what was happening "over here".
The Chinese have no interest in killing the American dollar, because they have lots and lots of them - and our Treasuries - in their bank. OTOH, maybe this coming trade war will make them abandon the dollar -and our Treasuries - faster than they would have otherwise.
How did we allow our dollar to become so worthless?
Monday, March 26.
Tick tock.
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
America is an oligarchy
http://www.fireflyfans.net/mthread.aspx?tid=57876
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:MORE AT https://www.zerohedge.com/news/2018-03-26/petroyuan-futures-volume-dom
PetroYuan' Futures Launch With A Bang, Volume Dominates Brent As Big Traders Step In
As we detailed previously, China’s yuan-denominated crude oil futures launched overnight in Shanghai with 62,500 contracts traded in aggregate, meaning over 62 million barrels of oil changed hands for a notional volume around 27 billion yuan (over $4 billion). As OilPrice.com's Tsvetana Paraskova notes, Glencore, Trafigura, and Freepoint Commodities were among the first to buy the new contract, Reuters reports. https://oilprice.com/Energy/Crude-Oil/China-Yuan-Futures-Launch-With-A
-Bang.html
After an initial surge in volume that outpaced overnight transactions in global benchmark Brent crude in London, trading tapered off toward the end of the session
Within minutes of the launch, the price had gone up to almost US$70.85 (447 yuan) from a starting price of US$69.94 (440.4 yuan) per barrel. The overall price jump for the short trading session came in at 3.92 percent.
Many awaited the launch eagerly, seeking to tap China’s bustling commodity markets, although doubts remain whether the Shanghai futures contract will be able to become another international oil benchmark. These doubts center on the fact that China is not a market economy, and the government is quick to interfere in the workings of the local commodity markets on any suspicion of a bubble coming.
To prevent such a bubble in oil, the authorities made sure the contract will trade within a set band of 5 percent on either side, with 10 percent on either side for the first trading day. Margin has been set at 7 percent. Storage costs for the crude are higher than the international average in hopes of discouraging speculators.
inates-brent-big-traders-step
How well this market functions, and how much it takes away from dollar-for-oil trade has yet to be seen; the initial surge in volume could be just clearing a backlog of demand.
Still, there's no doubt that this new oil contracts/ futures market, based on the yuan, WILL take away from petrodollar activity. Whether that's 5%, 10%, or more, time will tell.
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
America is an oligarchy
http://www.fireflyfans.net/mthread.aspx?tid=57876
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Thanks to sanctions against Iran, the death of the dollar is accelerated.
Both Xi Jingping and Putin have spoken out against the "dollar hegemony" in the past two weeks, saying that it is dangerous for the rest of the world. Until now, they have been silently separating themselves from dependency on the dollar: If anyone has been paying attention, they would have realized that China (with Russia's help) has constructed an entirely parallel financial and banking structure, including the AIIB and BRICS banks (international development banks parallel to the IMF and World Bank), the gold futures market and petro-yuan (convertible to gold), and a non-SWIFT payment system. A number of bilateral deals have been struck which avoid the dollar.
In addition, a lot of the emerging markets (EMs) currencies are in freefall, including Argentina, Turkey, Brazil, and (most recently) Italian bonds.
Quote:https://www.bloomberg.com/news/articles/2018-05-15/not-a-single-emergi
Twenty three out of 24 emerging-market currencies tracked by Bloomberg fell, and MSCI’s broad gauge briefly slipped below its average price of the past 200 days -- an indicator seen as a harbinger for more losses.
ng-market-currency-advances-as-stocks-tumble
However, now that Chinese and Russian leadership are openly pointing out the risk involved with relying on the USD, are they ready to pull the plug?
And now, for the first time one of those non-USD bilateral deals does NOT include Russia or China at the other end.
Quote:
Gold for Oil: India and Iran Ditch Dollar – Report 286
https://www.forexcrunch.com/gold-for-oil-india-and-iran-ditch-dollar-r
eport/
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
As long as you insist that everything is the Republicans'/ Democrats' fault, then you fail to grasp the REAL problem with American politics.
America is an oligarchy http://www.fireflyfans.net/mthread.aspx?tid=57876
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Other nations are piling on to the anti-dollar bandwagon. The problem is not just "sanctions", in which the USA uses its dollar hegemony (or it is "hegemoney"?) to punish and "isolate" those it doesn't like, it's The Fed's recent dollar-tightening policy: Without raising interest rates, The Fed is selling assets off its books, reducing the amount of "dollars" floating through the system and making the USD more valuable in relation to other currencies. So in addition to Argentina, Brazil, Venezuela (under USA sanctions) and other South and Central American nations seeing their currencies (and bonds) implode, we're also seeing Malaysia, India, and Indonesia begging for mercy.
https://www.zerohedge.com/news/2018-06-06/dollar-king-indonesia-joins-
india-begging-fed-stop-shrinking-its-balance-sheet
The last time this happened, emerging market nations begged the IMF and the Fed Chair at Jackson Hole, WY for relief from the "strong dollar" policy which was driving their currencies into the ground, and the answer was "Erm... no".
Quote:
Fed’s Jackson Hole Participants to QE-Exit Whacked Emerging Economies: Drop Dead
Posted on August 26, 2013 by Yves Smith https://www.nakedcapitalism.com/2013/08/feds-jackson-hole-participants
-to-qe-exit-whacked-emerging-economies-drop-dead.html
This is a repeated problem for emerging markets. However, THIS time, there is an alternative to the USD - the Chinese yuan. The Chinese (and Russians) have set up an entire alternate structure to the IMF/ World Bank/ BIS/ SWIFT/ gold fix/ USD system, with their BRICS Bank/ AIIB/ non-SWIFT exchange/ gold-backed petro-yuan, and other nations are beginning to avail themselves of this alternative.
In addition to sanctioned nations (Iran, Venezuela, Russia) looking for non-dollar trade, India forging rupee-based bilateral deals with Iran and 14 African Central Banks are discussing using the yuan as a reserve currency
Quote:
There is growing momentum to adopt China’s yuan as a reserve currency in Africa
https://qz.com/1291372/chinas-yuan-gets-support-from-africa-central-ba
nks-to-replace-us-dollar-reserve/
Emerging nations have gotten to the boil before, and some have had their currencies fall like dominoes, so it will be interesting to see how far off the dollar-path they're willing to tread this time.
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
As long as you insist that everything is the Republicans'/ Democrats' fault, then you fail to grasp the REAL problem with American politics.
America is an oligarchy http://www.fireflyfans.net/mthread.aspx?tid=57876
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Russia Explains Why It Liquidated Its US Treasurys
https://www.zerohedge.com/news/2018-07-30/russia-explains-why-it-liqui
dated-its-us-treasurys
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
"The messy American environment, where most people don't agree, is perfect for people like me. I CAN DO AS I PLEASE." - SECOND
America is an oligarchy http://www.fireflyfans.net/mthread.aspx?tid=57876
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
I kind of randomly posted this in another thread, http://www.fireflyfans.net/mthread.aspx?tid=62643 but it really belongs here
Quote:
But FWIW I don't believe that the USA deep state (and the elite that they serve) will be allowed to run roughshod over the globe much longer. Sooner or later ... possibly even as soon as next year ... there will be a major defection from the dollar by one of America's major partners. It's one thing for China, Russia, India, Iran, Venezuela and Turkey to dump out of the dollar system for their own bilateral dealings with each other. But I'm looking at Germany and Russia: If Trump insists on sanctioning any company that deals with the Nord Stream2, while Germany absolutely requires its completion, what do you suppose will happen? Putin and Merkel met last week, and I'll bet you dollars to donuts that Merkel and Putin were strategizing how to weasel around sanctions. I can think of a couple of ways for Germany to do this: (1) The same way that they got around sanctions before, by creating subsidiaries in Russia or other sacrificial business entities or (2) taking the much bolder step of paying for gas in Euros using a non-SWIFT system.
I have been reading various statements from Germany, France, and Russia. Merkel and Macron are none-too-pleased that their investments in Iran were yanked by USA sanctions; in particular French petroleum company Total had their Iranian projects taken over by CNPC (China National Petroleum Corporation). That's one blown deal that made the M$M, but I'm sure there were many more. Also, threatened sanctions against the Nord Stream2 have pissed off Merkel because this gas pipeline is existential for Germany. Plus the forex war against the Turkish lira, and rising USA interest rates which have once again torpedoed emerging market currencies from Argentina to Indonesia, have once again reminded ... well, everyone ... of the risk in borrowing USD.
Putin has been saying that it's time to get off the dollar. German Foreign Minister Heiko Maas has said the same. https://www.theatlantic.com/international/archive/2018/08/germany-us-h
eiko-maas/568129/ And now according to Bloomberg via Zerohedge
Quote:
EU Looking to Sidestep U.S. Sanctions With Payments System Plan
Germany and France said they’re working on financing solutions to sidestep U.S. sanctions against countries such as Iran, including a possible role for central banks.
The discussions, which also involve the U.K., are a signal that European powers are trying to get serious about demonstrating a greater level of independence from the U.S. as President Donald Trump pursues his “America First” agenda.
“With Germany, we are determined to work on an independent European or Franco-German financing tool which would allow us to avoid being the collateral victims of U.S. extra-territorial sanctions,” French Finance Minister Bruno Le Maire said Monday during a meeting with press association AJEF. “I want Europe to be a sovereign continent not a vassal, and that means having totally independent financing instruments that do not today exist.”
Trump reimposed the sanctions after pulling the U.S. out of the Iran nuclear accord in May, despite opposition from NATO allies and China and Russia. European companies including Daimler AG and Total SA have halted activity or backtracked on investment plans to avoid U.S. punishment but France and Germany and their European Union partners want business with the Islamic Republic to continue.
https://www.bloomberg.com/news/articles/2018-08-27/eu-looking-to-sides
tep-u-s-sanctions-with-payments-system-plan
If this plan helps Germany avoid NordStream2 sanctions, well ... so much the better. For them.
Yanno, either Trump is really stupid or he's looking to torpedo the USA currency as the petrodollar/ world reserve currency. I think that's a good thing because ti would allow the USA to manage it's own currency for national benefit, rather than the benefit of
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Nooooo... seriously??
Quote:In dollars, using western banks
US Threatens SWIFT With Sanctions If Iran Isn't Cut Off
Treasury Secretary Steven Mnuchin threatened the global financial messaging service SWIFT on Friday that it could be penalized if it doesn’t cut off financial services to entities and individuals doing business with Iran. The warning came just days ahead of the US re-imposition of all US sanctions on Iran that had been lifted under the 2015 nuclear deal, which will take effect at midnight tonight and cover Iran's shipping, financial and energy sectors.
Speaking to reporters, Mnuchin was quoted by Reuters as saying that "SWIFT is no different than any other entity," adding "We have advised SWIFT that it must disconnect any Iranian financial institutions that we designate as soon as technologically feasible to avoid sanctions exposure."
The Trump administration has been pressuring allies to cut Iranian oil imports to “zero” next month although on Friday the US agreed to grant exemptions to 8 countries that import Iran oil; the countries include Japan, India, and South Korea according to Bloomberg. China, the leading importers of Iranian oil remains in discussions with the US on terms but is among the eight, as is Turkey which will likely receive an exemption, the country's energy minister said on Friday. The full list of countries receiving waivers will be released on Monday.
By cutting Iran off from SWIFT, Iran would lose its ability to be paid for its exports and to pay for imports
Quote:MORE AT https://www.zerohedge.com/news/2018-11-04/us-threatens-swift-sanctions
Washington has been pressuring SWIFT to cut Iran from the financial system as it did in 2012 before the nuclear deal. Six years ago the EU imposed sanctions on Iranian banks, forcing SWIFT, which is subject to EU laws, to cut financial transactions with at least 30 of Iran’s financial institutions, including the central bank.
Iranian banks were reconnected to the network in 2016 after the Iran nuclear deal came into force, allowing much needed foreign cash to flow into Tehran’s coffers.
While SWIFT (The Society for Worldwide Interbank Financial Telecommunication), which is a financial network that provides cross-border transfers for members across the world, is based in Belgium, its board includes executives from US banks with US federal law allowing the administration to act against banks and regulators across the globe. It supports most interbank messages, connecting over 11,000 financial institutions in more than 200 countries and territories.
-if-iran-isnt-cut
Well, there's an alternative already set up, and it's not the EU's, it's Russia's.
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
"The messy American environment, where most people don't agree, is perfect for people like me. I CAN DO AS I PLEASE." - SECOND
America is an oligarchy http://www.fireflyfans.net/mthread.aspx?tid=57876
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Thanks for keeping up with this. I finally sat down and read it. Interesting stuff that isn't normally covered in the general M$M.
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
I don't take very seriously the Saudi threat to dump Treasuries if the NOPEC bill is passed. After all, the Saudi Kingdom has most of its wealth in dollars and Treasuries (well, that and its heavy investment in Silicon Valley unicorn farts) and any attempt to dump either one would simply torpedo the Saudi Soveriegn Wealth Fund, but this article has a number of interesting charts
https://www.zerohedge.com/news/2019-04-04/petrodollar-panic-saudis-thr
eaten-dump-usd-oil-trades-over-opec-anti-trust-bill
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
"The messy American environment, where most people don't agree, is perfect for people like me. I CAN DO AS I PLEASE." - SECOND
America is an oligarchy http://www.fireflyfans.net/mthread.aspx?tid=57876 .
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
I hadn't realized that Russia and China had already agreed to dump the dollar on mutual trade, I thought that would be a G20 announcment.
I take everything that Pepe Escobar writes seriously.
Quote:How about addressing those fluorocarbons being massively emitted in your northeastern manufacturing area, then, Mr Xi?
ESCOBAR: Putin, Xi to Cut US Dollar Out of Eurasian Trade; US Elites Panic
Something extraordinary began with a short walk in St. Petersburg last Friday.
After a stroll, they took a boat on the Neva River, visited the legendary Aurora cruiser, and dropped in to examine the Renaissance masterpieces at the Hermitage. Cool, calm, collected, all the while it felt like they were mapping the ins and outs of a new, emerging, multipolar world.
Chinese President Xi Jinping was the guest of honor of Russian President Vladimir Putin. It was Xi’s eighth trip to Russia since 2013, when he announced the New Silk Roads, or Belt and Road Initiative (BRI).
First they met in Moscow, signing multiple deals. The most important is a bombshell: a commitment to develop bilateral trade and cross-border payments using the ruble and the yuan, bypassing the U.S. dollar.
Then Xi visited the St. Petersburg International Economic Forum (SPIEF), Russia’s premier business gathering, absolutely essential for anyone to understand the hyper-complex mechanisms inherent in the construction of Eurasian integration. I addressed some of SPIEF’s foremost discussions and round tables here.
In Moscow, Putin and Xi signed two joint statements – whose key concepts, crucially, are “comprehensive partnership”, “strategic interaction” and “global strategic stability.”
In his St. Petersburg speech, Xi outlined the “comprehensive strategic partnership”. He stressed that China and Russia were both committed to green, low carbon sustainable development.
Quote:
He linked the expansion of BRI as “consistent with the UN agenda of sustainable development” and praised the interconnection of BRI projects with the Eurasia Economic Union (EAEU). He emphasized how all that was consistent with Putin’s idea of a Great Eurasian Partnership. He praised the “synergetic effect” of BRI linked to South-South cooperation.
And crucially, Xi stressed that China “won’t seek development to the expense of environment”; China “will implement the Paris climate agreement”; and China is “ready to share 5G technology with all partners” on the way towards a pivotal change in the model of economic growth.
So what about Cold War 2.0?
It was obvious this was slowly brewing for the past five to six years. Now the deal is in the open. The Russia-China comprehensive strategic partnership is thriving; not as an allied treaty, but as a consistent road map towards Eurasia integration and the consolidation of the multipolar world.
Unipolarism – via its demonization matrix – had first accelerated Russia’s pivot to Asia. Now, the U.S.-driven trade war has facilitated the consolidation of Russia as China’s top strategic partner.
Russia’s Ministry of Foreign Affairs better get ready to dismiss virtually everyday statements coming, for instance, from the Chairman of the Joint Chiefs of Staff, Gen. Joseph Dunford, when he alleges that Moscow aims to use non-strategic nuclear weapons in the European theater. It’s part of a non-stop process – now in high gear – of manufacturing hysteria by frightening NATO allies with the Russian “threat.”
Moscow better get ready to dodge and counteract reams of reports such as the latest from the RAND corporation, which outlines – what else? – Cold War 2.0 against Russia.
In 2014, Russia did not react to sanctions imposed by Washington. Then, it would have sufficed to merely brandish the threat of default on $700 billion in external debt. That would have killed the sanctions.
Now, there’s ample debate inside Russian intelligence circles on what to do in case Moscow faces the prospect of being cut off the CHIPS-SWIFT financial clearing system.
A 1936 map of Eurasia.
With fNOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
It's far more nuanced than my thinking, but I'm happy to see I got the essentials right:
Quote:The fact that they're bypassing the dollar though - unprecedented. I think what took them so long was the idea they were holding on to that they should hedge their bets, given anticipated retaliation. But they now seem prepared and willing to put up with the US's retaliation (and, as per the article, you can bet there will be retaliation).
http://www.fireflyfans.net/mthread.aspx?tid=63080
Originally posted by 1kiki:
Thinking about your post Signy - I think two things are going on.
1) Russia and China have been thrown into each other's arms for many years, and ... they're, finally, holding on tightly to each other. China has concluded there's no upside to dealing with the US on anything vital. ...
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Pepe Escobar sounds like a cartoon frog drug cartel leader.
Proving the theory that there's nothing new under the sun, the internet already thought of that too.
Do Right, Be Right. :)
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
This is just a notion that I haven't thought thru but here it is:
People have been talking for years about how unstable the dollar is. And many countries are bypassing the petrodollar for things like oil and other energy contracts, and bypassing the dollar and SWIFT for general trade. At least one major country has already significantly de-dollarized, and supposedly others are starting to follow along.
But what if the dollar is still too big to fail? What if too many countries have too many dollars and dollar-denominated assets to let it go belly-up (at least, in the nearby future)?
Anyway, I need to think about it, but figured I'd put it out there.
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Russia and China have been waffling around about what to do about the dollar for a few years now. For a while it looked like Putin would be willing to settle on trading in the Euro, but with Brexit and Italy and the other nationalist movements rattling the EU, plus the fact that the EU keeps caving in to whatever sanctions the USA imposes I think he dumped the idea.
China put in a bid to be included in the SDR (the IMF's Special Drawing Rights, which is a basket of currencies that the IMF would be willing to lend a central bank in case of emergency, and CNY (Chinese yuan) does indeed make up 19% of the SDR (just below the 20% required to have a vote in IMF policy!) but I think the Chinese have also abandoned that plan. China also created an oil futures market and the Shanghai gold exchange which would theoretically take over the oil trade (basically gold-for-oil) which seems to be doing good business, but has not taken over the world oil market.
There is a non-USA SWIFT in operation. Gold-backed national crypto is (or was) under consideration. Venezuela is experimenting with an oil-backed crypto.
What I think is that the Eurasian world is coalescing around something called the "gold trade note". Gold would be a way of valuing trade goods ... 100,000 tons of wheat is worth a half-ton of gold, a million barrels of oil for 1.5 tons of gold ... using gold as a ledger, nations trade for goods at negotiated prices and at the end of the year outstanding balances are settled in gold. This doesn't mean that the various nations would get rid of their currencies, only that international trade would be valued and settled in gold and not clunky currency swaps or the USD. I think this would work in parallel with the non-USA SWIFT bank exchange, which would be settling non-gold debts and payments (loans, credit card use in non-"home" countries) etc but where one ends and the other begins ... not sure.
The rest of the world would still be using the USD, so there will be a dual-universe system, it's just that the dollar universe would be getting smaller and smaller. Also, what has been speculated is that within the USD universe, the value of the dollar would just keep going up and up ... until it disappears.
Those are some thoughts, anyway.
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
"The messy American environment, where most people don't agree, is perfect for people like me. I CAN DO AS I PLEASE." - SECOND
America is an oligarchy http://www.fireflyfans.net/mthread.aspx?tid=57876 .
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
That's a good point Kiki.
Dollar or no dollar, the US has the biggest war machine on the planet. It's not as if the dollar would just disappear into nothing overnight.
I don't imagine the US goes out in a whimper.
I think the death of the dollar is probably the beginning if WWIII.
Do Right, Be Right. :)
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:This whole arena is new to me, so I'm just trying to puzzle out the basics.
Originally posted by SIGNYM:
Russia and China have been waffling around about what to do about the dollar for a few years now. For a while it looked like Putin would be willing to settle on trading in the Euro, but with Brexit and Italy and the other nationalist movements rattling the EU, plus the fact that the EU keeps caving in to whatever sanctions the USA imposes I think he dumped the idea.
China put in a bid to be included in the SDR (the IMF's Special Drawing Rights, which is a basket of currencies that the IMF would be willing to lend a central bank in case of emergency, and CNY (Chinese yuan) does indeed make up 19% of the SDR (just below the 20% required to have a vote in IMF policy!) but I think the Chinese have also abandoned that plan. China also created an oil futures market and the Shanghai gold exchange which would theoretically take over the oil trade (basically gold-for-oil) which seems to be doing good business, but has not taken over the world oil market.
There is a non-USA SWIFT in operation. Gold-backed national crypto is (or was) under consideration. Venezuela is experimenting with an oil-backed crypto.
What I think is that the Eurasian world is coalescing around something called the "gold trade note". Gold would be a way of valuing trade goods ... 100,000 tons of wheat is worth a half-ton of gold, a million barrels of oil for 1.5 tons of gold ... using gold as a ledger, nations trade for goods at negotiated prices and at the end of the year outstanding balances are settled in gold. This doesn't mean that the various nations would get rid of their currencies, only that international trade would be valued and settled in gold and not clunky currency swaps or the USD. I think this would work in parallel with the non-USA SWIFT bank exchange, which would be settling non-gold debts and payments (loans, credit card use in non-"home" countries) etc but where one ends and the other begins ... not sure.
The rest of the world would still be using the USD, so there will be a dual-universe system, it's just that the dollar universe would be getting smaller and smaller. Also, what has been speculated is that within the USD universe, the value of the dollar would just keep going up and up ... until it disappears.
Those are some thoughts, anyway.
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
"The messy American environment, where most people don't agree, is perfect for people like me. I CAN DO AS I PLEASE." - SECOND
America is an oligarchy http://www.fireflyfans.net/mthread.aspx?tid=57876 .
I think the difference is, I was looking at it from the US view looking out, rather than a foreign country looking into the US.
So, foreign countries (foreign country looking into the US) have been confronted with the problem of the dollar, especially since the US has decided to 'weaponize' it. "If you don't do what we say, we'll just take our dollars and go home, so poopies on you!" Well, it's obviously far more complicated than that. But anyway, I think the other countries, looking at it from their POV, are simply making defensive maneuvers. Unless I underestimate them, it's not some evil plot to take over the world, or torpedo the dollar. They're just trying to secure their financial interactions in the world, should the US take its dollar gun and aim it at them.
Looking at it from the US POV (the US view looking out), there are a things making the dollar unstable that have nothing to do with whatever the Russians, Chinese, etc might be doing re the dollar and trade: it's the petrodollar and that depends on the Saudis keeping market dominance and enforcing the petrodollar (otherwise people will start paying for oil in non-USD, and there goes the global demand for the dollar); aside from the petrodollar the US has n
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
China "Discreetly" De-Dollarizing Amid Ongoing Trade Tensions
?
https://www.zerohedge.com/economics/china-discreetly-de-dollarizing-am
id-ongoing-trade-tensions
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
https://www.zerohedge.com/geopolitical/us-officials-enraged-after-6-mo
re-eu-nations-will-bypass-iran-sanctions-through-instex
US Enraged After 6 More EU Nations Join INSTEX To Bypass Iran Sanctions
On Friday six European countries issued a bombshell joint statement declaring their intent to join INSTEX, or the Instrument in Support of Trade Exchanges, a European special-purpose vehicle serving as a 'SWIFT alternative' to bypass US sanctions on Iran.
Finland, Belgium, Denmark, Netherlands, Norway, and Sweden released a joint statement asserting it's of "the utmost importance to the preservation and full implementation of the Joint Comprehensive Plan of Action (JCPoA) on Iran’s nuclear program by all parties involved."
"In light of the continuous European support for the agreement and the ongoing efforts to implement the economic part of it and to facilitate legitimate trade between Europe and Iran, we are now in the process of becoming shareholders of the Instrument in Support of Trade Exchanges (Instex) subject to completion of national procedures," the statement reads.
This is not directly related to the dollar, but it's certainly an indication that 'weaponizing' the dollar is a poor strategy that will ultimately lead to its decline.
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
We'll probably hear more about that than we do about Hong Kong.
Gee. Wonder why?
Speaking of Hong Kong...
Protestors in Hong Kong are waiving American flags, while the left in America is trying to turn us into a Communist country.
Do Right, Be Right. :)
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
The day the dollar died ... ?
The dollar – and the USA – is toast
Sunday, May 26, 2013 9:54 AM
JONGSSTRAW
http://www.fireflyfans.net/mthread.aspx?bid=18&tid=55101&p=1
May 20: The day the dollar died?
Friday, May 16, 2014 1:25 PM
SIGNYM
http://www.fireflyfans.net/mthread.aspx?bid=18&tid=58051&p=1
Perhaps this is the day the dollar died -
31 December 2019 The World Health Organization (WHO) is alerted on 31 December 2019, by the Chinese authorities of a string of pneumonia-like cases in Wuhan, a city of 11 million people.
https://www.sciencealert.com/here-s-everything-you-need-to-know-about-
china-s-mysterious-virus
Or maybe it was on this little-noticed new development -
China and Russia ditch dollar in move toward 'financial alliance'
https://asia.nikkei.com/Politics/International-relations/China-and-Rus
sia-ditch-dollar-in-move-toward-financial-alliance
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
If the dollar dies, I'm going to be in a pretty good spot, relatively speaking.
I wonder how many Che Guevara shirt wearing, "educated", Commie, mask wearing wannabes are going to be able to say the same thing once the realization of what they've ushered in hits them.
Do Right, Be Right. :)
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
'No doubt' US has undercounted Covid deaths: Fauci
https://www.france24.com/en/live-news/20210509-no-doubt-us-has-underco
unted-covid-deaths-fauci
Biden's budget meets criticism from right and left on Pentagon spending
https://uk.style.yahoo.com/bidens-first-budget-fuels-health-164917749.
html
Venezuela, the Failed State on Our Doorstep
https://news.yahoo.com/venezuela-failed-state-doorstep-103034338.html
Oil Steady as Dollar Dips and India Cases Surge
https://www.rigzone.com/news/wire/oil_steady_as_dollar_dips_and_india_
cases_surge-19-apr-2021-165196-article/
House GOP leader says he backs ousting Cheney from No. 3 job
https://www.independent.co.uk/news/world/americas/us-politics/house-go
p-leader-says-he-backs-ousting-cheney-from-no-3-job-kevin-mccarthy-dick-cheney-donald-trump-liz-cheney-elise-stefanik-b1844585.html
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by JAYNEZTOWN:
'No doubt' US has undercounted Covid deaths: Fauci
How do you undercount zero?
Is Covid-19 bringing people back to life then?
I saw Pet Cemetery. This does not end well.
--------------------------------------------------
Give me liberty or just come shoot me in my house. I'm so over this ridiculous reality.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
What does Covid-19 have to do with the dollar?
The value of the dollar was being undercut ever since The Fed was formed. (1913)
And since we went off the gold standard in 1973 and replaced it with the petrodollar.
And then we de-industrialized and eliminated much of the economic backing behind the dollar.
Now that the dollar is teetering on the edge of a precipice, Biden* intends to print it into oblivion, and China and Russia are actively trying to push it over the edge.
The people whoaregoing to lose are the savers who are holding dollars, not those who are in debt. Because when the value of the dollar goes POOF! all of the savers' wealth will disappear.
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
THUGR posts about Putin so much, he must be in love.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
We Are Heading To A Biden Recession
https://rumble.com/vod7qd-we-are-heading-to-a-biden-recession.html
and there was another thread
Destruction of the US Dollar II
an expanded thread from the Bush Obama years and War in Iraq & Afghanistan because the first thread was too long
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Musk
https://twitter.com/elonmusk/status/1468684576407101440
If “temporary” provisions in the Build Back Better Act become permanent, US national debt will increase by 24%!
12 major cities hit all-time homicide records
https://abcnews.go.com/US/12-major-us-cities-top-annual-homicide-recor
ds/story?
When the Crime Wave Hits Your Family. Our nanny’s living room in Oakland was sprayed with bullets. It didn’t even make the local news.
https://bariweiss.substack.com/p/when-the-crime-wave-hits-your-family
Consumer prices rose by 6.8% in November over previous year, Labor Department ... The number marks highest annual inflation rate since June 1982
https://justthenews.com/nation/economy/consumer-price-index
Video that has resurfaced after the new Massachusetts US attorney was narrowly confirmed by the US Senate, with Kamala Harris casting the tie-breaking vote, shows President Joe Biden's latest appointee angrily confronting journalists in January 2021 over a road rage incident in which she cut off a white motorist and then appeared to impersonate a police office in a Boston parking lot. Biden tapped Suffolk Country District Attorney Rachael Rollins to lead the US Attorney's Office in Massachusetts in July. On Wednesday she made history as the first black woman to be confirmed in the role by the Senate
https://www.dailymail.co.uk/news/article-10294747/Video-shows-Bidens-n
ew-Mass-attorney-threatening-reporters-expletive-ridden-tirade.html
Senate passes stopgap funding bill, avoiding shutdown
https://apnews.com/article/coronavirus-pandemic-business-health-congre
ss-aa30e5922cb6650e9235b0a66813b2f4
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Biden says he is ‘making progress’ on still-rising inflation
https://nypost.com/2022/01/12/biden-says-he-is-making-progress-on-stil
l-rising-inflation/
What is Bare Shelves Biden and why is it trending?
https://www.the-sun.com/news/4431093/bare-shelves-biden-why-is-it-tren
ding/
Biden's Build Back Better Are Turning Washington DC. Stores Into Venezuela Markets.
https://www.bitchute.com/video/4EhOaXK09bjG/
'The Five' react to Biden getting excoriated on shortages
https://rumble.com/vsf6ri-the-five-react-to-biden-getting-excoriated-o
n-shortages.html
Joe Biden admits 'more work to do' as US inflation hits 7% for first time in nearly 40 years
https://news.sky.com/story/biden-admits-more-work-to-do-as-us-inflatio
n-hits-7-for-first-time-in-nearly-40-years-12514453
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Your boy Joe* is destroying the US Dollar, Ted.
https://www.amac.us/bidens-sanctions-might-hurt-americans-more-than-pu
tin/
If that happens, the Democratic Party might as well just disband because it's over for them forever.
--------------------------------------------------
Me: "Remember Covid?"
Useless Idiots: "What's Covid, durr? Russia, Ukraine, Putin, NATO *drool*. DURRRR!!!!"
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Bitcoin could crush Russian ruble by rising another 140%, classic technical setup suggests
https://cointelegraph.com/news/bitcoin-could-crush-russian-ruble-by-ri
sing-another-140-classic-technical-setup-suggests
The Dominance Of The U.S. Dollar Is Fading Right Before Our Eyes
https://quoththeraven.substack.com/p/the-dominance-of-the-us-dollar-is
?s=r
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Because of USA financial sanctions against Russia, including...
Confiscating property of foreigners who have nothing to do with the war in Ukraine
De-SWIFTING major Russian banks, and (especially)
Confiscating the assets held abroad by the Russian Central Bank...
many nations and wealthy individuals are re-thinking holding dollar and euro-based assets in American and European banks. Sure, the USA has stolen Ukrainian, Libyan, and Iraqi gold, and refuses to repatriate all of Germany's gold, and the Bank of England stole Venezuela's gold
Sure, the USA has arbitrarily and illegally frozen the assets of, and sanctioned a dozen nations across the globe...
But Russia is a G20 nation, and these illegal sanctions have touched nerves and affected economies everywhere.
*****
As a result
Russia and China have melded their non-SWIFT bank payment systems
Russia and India are doing deals using rupee-ruble currency swaps
The EAEU (Russia, China, and central Asia) are hammering out a common currency based on commodities and
Saudi Arabia has signaled that it would be willing to be paid in Chinese yuan
*****
As if that weren't enough, the USA is threatening CHINA with sanctions bc it is ignoring USA-imposed sanctions on Russia. As nonsensical as that sounds, the USA has been doing that for years
So the USD is being squeezed out of more and more international trade (thanks Joe*!) and is likely to be squeezed out of even more, since the USA has completely weaponized the petrodollar status and made it a risky asset.
Furthermore, Putin spoke a few days ago, and one of the things he said is that Russia will NOT confiscate assets tit-for-tat, but will be a reliable place in which to hold assets and invest.
I believe USA's full-on weaponizing the petrodollar has reached a critical point where many nations, and not just those currently being sanctioned (Balkans, Belarus, Burma, Central African Republic, Cuba, Democratic Republic of Congo, Hong Kong, Iran, Iraq, Lebanon, Libya, Mali, Nicaragua, Russia, Somalia, Sudan, South Sudan, Syria, Ukraine, Venezuela, Yemen, and Zimbabwe) will be looking for options outside of the USD, including Brazil, Philippines, etc.
Currency and financial systems behave gravitationally: the bigger they are, the more they attract. If non-USD systems reach a critical mass, the USD reserve currency system will implode.
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
When everybody is sanctioned, nobody is sanctioned.
--------------------------------------------------
Me: "Remember Covid?"
Useless Idiots: "What's Covid, durr? Russia, Ukraine, Putin, NATO *drool*. DURRRR!!!!"
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Fantasy thread from Sigs started…? 5 years ago. Meanwhile, the Rubble is worthless and the Russian *stock market is still closed. Name another country that has done so embarrassingly bad. I guess all according to plan for “Novorossiya.” Great job Putin! Legacy! Oh, btw, there’s going to be a NEW Russia alright. 
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by 6IXSTRINGJACK:
When everybody is sanctioned, nobody is sanctioned.
Who’s being sanctioned? No one is being sanctioned.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by CAPTAINCRUNCH:Quote:
Originally posted by 6IXSTRINGJACK:
When everybody is sanctioned, nobody is sanctioned.
Who’s being sanctioned? No one is being sanctioned.
Holy shit... lol
See what I'm dealing with here, folks.
--------------------------------------------------
Me: "Remember Covid?"
Useless Idiots: "What's Covid, durr? Russia, Ukraine, Putin, NATO *drool*. DURRRR!!!!"
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Did you lose your internet while you were living under that rock for a year, Cap'n?
https://www.atlanticcouncil.org/blogs/econographics/global-sanctions-d
ashboard-groundhog-edition/
Here's a fun little map for you, assuming that your brain thinks in pictures instead of words like Ted's does. I don't remember. It's been so long since I've had to deal with your particular brand of dumb-assery that I'd purged it from my memory banks long before you came back.
It is unclear from the map if any country has put any sanctions on the Penguins of Antarctica yet.
--------------------------------------------------
Me: "Remember Covid?"
Useless Idiots: "What's Covid, durr? Russia, Ukraine, Putin, NATO *drool*. DURRRR!!!!"
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:I see you've given up on any semblance of credibility.
Originally posted by CAPTAINCRUNCH:
Who’s being sanctioned? No one is being sanctioned.[
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by SignyM:Quote:I see you've given up on any semblance of credibility.
Originally posted by CAPTAINCRUNCH:
Who’s being sanctioned? No one is being sanctioned.[
Ha! Jack said there’s no invasion, so how can there be any sanctions?
Pretty soon there probably won’t be any Putin, though! Legacy! New Russia!
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by 6IXSTRINGJACK:
Did you lose your internet while you were living under that rock for a year, Cap'n?
https://www.atlanticcouncil.org/blogs/econographics/global-sanctions-d
ashboard-groundhog-edition/
Here's a fun little map for you, assuming that your brain thinks in pictures instead of words like Ted's does. I don't remember. It's been so long since I've had to deal with your particular brand of dumb-assery that I'd purged it from my memory banks long before you came back.
It is unclear from the map if any country has put any sanctions on the Penguins of Antarctica yet.
--------------------------------------------------
There are no sanctions. Wake up dummy.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
lol
--------------------------------------------------
Me: "Remember Covid?"
Useless Idiots: "What's Covid, durr? Russia, Ukraine, Putin, NATO *drool*. DURRRR!!!!"
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Well as long as Gasoline Prices Don't Rise AGAIN !?
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Oh... They will.
Meanwhile, watch while the prices of everything else catch up to our new gas prices.
Will Biden* hit -15 and break a new record on the Job Approval aggregate next week?
He went from -8.8 to -13.9 in record time this week.
Just like I told Ted he would.
--------------------------------------------------
Me: "Remember Covid?"
Useless Idiots: "What's Covid, durr? Russia, Ukraine, Putin, NATO *drool*. DURRRR!!!!"
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by JAYNEZTOWN:
Well as long as Gasoline Prices Don't Rise AGAIN !?
So much for that idea, huh?
In other news...
I haven't been to a Baseball game in ages. That's not going to change any time soon.
I was talking to a guy the other day who said last summer was the last time he's ever going to a ball game, because you couldn't even buy a bag of peanuts without a credit card or phone app. He said that the entire MLB was doing away with cash.
I looked into it and sure enough...
https://www.wcnc.com/article/money/cash-outdated-currency-ballparks-sp
orting-events-cash-app-venmo-apple-pay/275-b0ff18cd-43f1-4101-8fc6-afaa2f84e127
All because of Covid.
Right...
Just one more thing I had no interest in ever doing again that I certainly won't be anymore.
They lost me years ago anyhow.
--------------------------------------------------
Me: "Remember Covid?"
Useless Idiots: "What's Covid, durr? Russia, Ukraine, Putin, NATO *drool*. DURRRR!!!!"
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Brazil, Russia, India, China, and South Africa are working together to create a new currency to be used as a reserve currency and settlement for trade.
https://www.markets.businessinsider.com/news/currencies/dollar-dominan
ce-russia-china-rouble-yuan-brics-reserve-currency-imf-2022-6
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Analysis-How Congress might look for Biden post midterms: The good, bad, and the ugly
https://uk.news.yahoo.com/analysis-congress-might-look-biden-171526206
.html
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
I still think another major currency will collapse before the US Dollar, the Euro, Yen, Ruble, Bitcoin?
anyways some news
'Jim Rickards On Global Recession – Prepare for What is Coming'
https://www.savvyeconomists.com/2022/10/26/jim-rickards-on-global-rece
ssion-prepare-for-what-is-coming/
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
The Dollar is fine.
--------------------------------------------------
Growing up in a Republic was nice... Shame we couldn't keep it.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
The expanded BRICS (to include Iran and Argentina. Saudi Arabia also wants to join, along with another dozen or so nations https://www.silkroadbriefing.com/news/2022/11/09/the-new-candidate-cou
ntries-for-brics-expansion/and) are working on a common currency. The dollar may, or may not, increase in value relative to other western currencies but its circulation will diminish.
-----------
Pity would be no more,
If we did not MAKE someone poor - William Blake
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by SIGNYM:
The expanded BRICS (to include Iran and Argentina. Saudi Arabia also wants to join, along with another dozen or so nations https://www.silkroadbriefing.com/news/2022/11/09/the-new-candidate-cou
ntries-for-brics-expansion/and) are working on a common currency. The dollar may, or may not, increase in value relative to other western currencies but its circulation will diminish.
-----------
Pity would be no more,
If we did not MAKE someone poor - William Blake
Do a search for silkroadbriefing on Google and tell me what you notice about the first 4 results.
--------------------------------------------------
Growing up in a Republic was nice... Shame we couldn't keep it.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Well I pulled up the site itself. It seems very China-centric.
But the fact is that I've heard about the expanded BRICS and their new (potential) common currency from many sources bc of it's recent meeting in China, and plans for a non-dollar common currency
https://markets.businessinsider.com/news/currencies/dollar-dominance-r
ussia-china-rouble-yuan-brics-reserve-currency-imf-2022-6
There are just too many references in too many places for me to doubt the authenticity of the info. I just grabbed the article with the most comprehensive list of BRICS applicants and potential BRICS applicants.
If Saudi Arabia really joins it would certainly weaken the role of the US dollar in the oil trade, and therefore weaken the necessity of keeping USD as a reserve currency.
-----------
Pity would be no more,
If we did not MAKE someone poor - William Blake
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
This is what I was referring to...
Hit #1
Silk Road Briefing: Business Intelligence, Legal, Tax ...
https://www.silkroadbriefing.com
7 hours ago — All Silk Road & OBOR related infrastructure and investment development news and commentary from across Eurasia from Dezan Shira & Associates.
Hit #2
Vietnam Briefing: Business, Legal, Tax, Investment ...
https://www.vietnam-briefing.com
12 hours ago — Vietnam Briefing is one of the few available sources for quality legal, tax and investment insights into Vietnam.
Hit #3
ASEAN Briefing: Business, Legal, Tax, Investment, Accounting ...
https://www.aseanbriefing.com
16 hours ago — ASEAN Briefing publishes business news, resources and publications concerning foreign direct investment into ASEAN, including the most important tax, ...
Hit #4
Middle East Briefing: Business, Legal, Tax, Accounting, HR ...
https://www.middleeastbriefing.com
14 hours ago — Asia Briefing · China Briefing · ASEAN Briefing · India Briefing · Vietnam Briefing · Silk Road Briefing · Russia Briefing · Middle East Briefing.
The only time I've seen copy/paste websites like this before are for scam products, which are almost always bought from Alibaba and then packaged under diffrent company names playing wack-a-mole and upselling cheap chinese shit products for 10 times what they actually cost.
--------------------------------------------------
Growing up in a Republic was nice... Shame we couldn't keep it.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by SIGNYM:
Well I pulled up the site itself. It seems very China-centric.
But the fact is that I've heard about the expanded BRICS and their new (potential) common currency from many sources bc of it's recent meeting in China, and plans for a non-dollar common currency
https://markets.businessinsider.com/news/currencies/dollar-dominance-r
ussia-china-rouble-yuan-brics-reserve-currency-imf-2022-6
There are just too many references in too many places for me to doubt the authenticity of the info. I just grabbed the article with the most comprehensive list of BRICS applicants and potential BRICS applicants.
If Saudi Arabia really joins it would certainly weaken the role of the US dollar in the oil trade, and therefore weaken the necessity of keeping USD as a reserve currency.
-----------
Pity would be no more,
If we did not MAKE someone poor - William Blake
And as for this, I'll say the same thing to you about it that I say to Second when he claims that the American government has no say in prices or has any hand in our current inflation...
In Second's case, why weren't companies raping customers when Trump was President.
In your case, if it were as simple as you make it sound to get the rest of the world or a sizable portion of it off of the USD as the main currency, why haven't they done it before?
I have zero fear that this is a possibility. What these people ARE doing is trying to make Americans and others feel like the Dollar is in trouble and make people lose faith in the Dollar.
And that hurts EVERYBODY if it happens.
Besides... There will be war if somebody attempts it. And I don't mean the dumb bullshit fake war going on in Ukraine right now.
I mean the type of war that would wipe Ukraine off the face of the earth on the very first day.
--------------------------------------------------
Growing up in a Republic was nice... Shame we couldn't keep it.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Oh, somebody tried it, and there was a war. Two, in fact.
Why did we invade Iraq? We both know it had nothing to do with WMDs or democracy or freedom or terrorism. So we know what it wasn't about, but what was it FOR?
Well, once Saddam was found to be in substantial compliance with getting rid of his chemical weapons- which he'd done- then oil embatgo would be lifted. And there was a contract all written up with France and ready to be signed, and the deal was oil for Euros and gold.
And we both know that Qaddafi wasn't "massacring his own people" and that Libyans had a much higher standard of living and education than any other nation in Africa, thanks to Libya's oil wealth being used to develop the nation. So waht was THAT all about? Well, it turns out that Qaddafi used a portion of Libya's oil wealth to build a store of gold. He was going to create a gold-based panAfrican currency called the African dinar. And look what happened to him. btw the gold disappeared and nobody knowss who stole it.
The USD has only one thing backing it: bullets.
Our deal with the Saudis, which made the dollar such an essential for the oil trade, went something like this: You only accept dollarz for oil, and use those dollars to buy USTs, and we'll protect you from your enemies. (.And if you don't, we'll bomb the snot out of you)
So what's changed?
Well, perceived USA military weakness.
The Saudis were none too pleased when one of their transfer facilities was struck and damaged a couple of years ago by practically homemade Yemeni drones. Despite having USA air defenses including Patriot missiles and fighter jets.
Then they, and everyone else, saw how the USA stole Russia's foreign reserves and kicked them out of the SWIFT, weaponizing the USD. A weaponized reserve currency is an unreliable reserve currency.
And finally, people do notice that Russia is kicking NATO's ass in Ukraine.
The only thing that will keep the dollar afloat is that too many nations have too many dollars. China has a trillion in USD and UST. Saudi Arabia and Japan and Europe also have a lot of US-denominated reserves, and nobody wants to see that value drop sudenly. But finance ministers ARE looking to get out from under the USAs ass a bit.
-----------
Pity would be no more,
If we did not MAKE someone poor - William Blake
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
It's even more than that though.
We in America are beneficiaries to the fact that the REAL PTB based their whole empire off of the USD.
Now unless they have a particular gripe against the US that they find so irredeemably egregious that they have no choice but to switch currency, think of the logistics involved in that. TPTB wouldn't want to make a move so drastic and with such unpredictable results unless they knew full well that they had complete control over the outcome from the get go. And as you've illustrated above, any attempt at middle-management "leaders" trying to do so on their own ends up with their cities being turned to rubble.
People the world round can say all they want about the weakness of the US Military, but all that is is talk. Our military dwarfs the rest of the world's military and gets larger and larger cash infusions nearly every single year, and despite that fact it does practically nothing but "exist".
Incidentally... Screw NATO. If it weren't for the fact that it would trigger WWIII, the US Military could invade Russia today and turn Moscow to rubble by the end of the weekend if it were directed to. But TPTB have no interest in owning a world that is on fire.
Also incidentally... I believe this to be the big push against Russia right now when China clearly is the world's largest power guilty of the most egregious crimes against humanity and its own citizenry. Russia is a threat to nobody. But Russia also isn't easily bought off by TPTB like the US Government or fully on board with enslaving its people like China is.
Maybe this is the big push toward digital currency? Maybe this is why we currently have a white house press release hinting at the US switching toward a digital currency instead of cash?
If TPTB created digital currency and weened the world off of the USD and all other international currencies over the course of say, a few decades, they'd have complete control over it, and in turn practically over everyone on the planet. Nobody would be able to fight against it. Every single transaction you ever make will be logged. Do you like eating food? Well then, hop in the machine, Cog, and give thanks to your overlord for allowing you this opportunity. If you ever step out of line you will starve to death. Anybody found guilty of trying to feed, clothe or house somebody cut off from the digital currency will be found guilty of treason.
Hell... they could even make your currency have an expiration date so whatever you don't spend at the end of the month is lost and you can never save for a better future, both ensuring the "consumerism" economy chugs along until the sun explodes and essentially enslaving you to the whims of the system from the moment you're born until the day you die.
That's the only outcome I'm concerned about. Worrying about China and the Middle East making their own little currency to fight the Big Bad Dollar is cute.
--------------------------------------------------
Growing up in a Republic was nice... Shame we couldn't keep it.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:Only true to a certain extent. Bill Gates for example has moved gisxwralth into more durable assets: farmland and the Svarlsbaard seed bank. Others have moved their assets into stocks. Others are in the Euro or the yen. USD makes up a large part of reserve currency but something else makes up the other 40-45pct.
Originally posted by 6IXSTRINGJACK:
It's even more than that though.
We in America are beneficiaries to the fact that the REAL PTB based their whole empire off of the USD.
Quote:I can't imagine how. The first thing any invading nation does is wipe out the target's air defenses: radar stations, air bases, air fleets, communications, satellites and AWACS-tyoe planes, anti-aircraft batteries. Then they can go to town with command centers, fuel depots, military bases, munitions, etc and, finally, send in the troops.
Now unless they have a particular gripe against the US that they find so irredeemably egregious that they have no choice but to switch currency, think of the logistics involved in that. TPTB wouldn't want to make a move so drastic and with such unpredictable results unless they knew full well that they had complete control over the outcome from the get go. And as you've illustrated above, any attempt at middle-management "leaders" trying to do so on their own ends up with their cities being turned to rubble.
People the world round can say all they want about the weakness of the US Military, but all that is is talk. Our military dwarfs the rest of the world's military and gets larger and larger cash infusions nearly every single year, and despite that fact it does practically nothing but "exist".
Incidentally... Screw NATO. If it weren't for the fact that it would trigger WWIII, the US Military could invade Russia today and turn Moscow to rubble by the end of the weekend if it were directed to. But TPTB have no interest in owning a world that is on fire.
But Russia has powerful air defenses. And where does the USA launch this attack from?? Yes, we have bases across Europe, but the total number of USA troops in Europe is about 90,000. https://news.yahoo.com/explainer-how-many-american-troops-are-in-europ
e-134927726.html it would take a lot more than that to invade Russia. And Europe is already scraping the bottom of the barrel in terms of weapons to send to Ukraine.
It took GWB six months to assemble the 500,000 men he thought necessary to invade Iraq. We wouldn't be allowed the time -or the convoys necessary - to invade Russia, since Russia has very capable anti-ship missiles. So unless we're willing to go nuclear, the idea of conquering Moscow is just a dream.
Quote:
Also incidentally... I believe this to be the big push against Russia right now when China clearly is the world's largest power guilty of the most egregious crimes against humanity and its own citizenry. Russia is a threat to nobody. But Russia also isn't easily bought off by TPTB like the US Government or fully on board with enslaving its people like China is.
Maybe this is the big push toward digital currency? Maybe this is why we currently have a white house press release hinting at the US switching toward a digital currency instead of cash?
If TPTB created digital currency and weened the world off of the USD and all other international currencies over the course of say, a few decades, they'd have complete control over it, and in turn practically over everyone on the planet. Nobody would be able to fight against it. Every single transaction you ever make will be logged. Do you like eating food? Well then, hop in the machine, Cog, and give thanks to your overlord for allowing you this opportunity. If you ever step out of line you will starve to death. Anybody found guilty of trying to feed, clothe or house somebody cut off from the digital currency will be found guilty of treason.
Hell... they could even make your currency have an expiration date so whatever you don't spend at tNOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
The dratted dbl
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by SIGNYM:Quote:Only true to a certain extent. Bill Gates for example has moved gisxwralth into more durable assets: farmland and the Svarlsbaard seed bank. Others have moved their assets into stocks. Others are in the Euro or the yen. USD makes up a large part of reserve currency but something else makes up the other 40-45pct.
Originally posted by 6IXSTRINGJACK:
It's even more than that though.
We in America are beneficiaries to the fact that the REAL PTB based their whole empire off of the USD.
Yes. But it's still the base, and even amid the current volatility of everything, it's still the most reliable asset to hold onto. This is by design.
In other words, it's not a Bug that the rest of the world is suffering from inflation, recession and financial turmoil at the same time that America is. It's a Feature.
Quote:Quote:I can't imagine how. The first thing any invading nation does is wipe out the target's air defenses: radar stations, air bases, air fleets, communications, satellites and AWACS-tyoe planes, anti-aircraft batteries. Then they can go to town with command centers, fuel depots, military bases, munitions, etc and, finally, send in the troops.
Now unless they have a particular gripe against the US that they find so irredeemably egregious that they have no choice but to switch currency, think of the logistics involved in that. TPTB wouldn't want to make a move so drastic and with such unpredictable results unless they knew full well that they had complete control over the outcome from the get go. And as you've illustrated above, any attempt at middle-management "leaders" trying to do so on their own ends up with their cities being turned to rubble.
People the world round can say all they want about the weakness of the US Military, but all that is is talk. Our military dwarfs the rest of the world's military and gets larger and larger cash infusions nearly every single year, and despite that fact it does practically nothing but "exist".
Incidentally... Screw NATO. If it weren't for the fact that it would trigger WWIII, the US Military could invade Russia today and turn Moscow to rubble by the end of the weekend if it were directed to. But TPTB have no interest in owning a world that is on fire.
But Russia has powerful air defenses. And where does the USA launch this attack from?? Yes, we have bases across Europe, but the total number of USA troops in Europe is about 90,000. https://news.yahoo.com/explainer-how-many-american-troops-are-in-europ
e-134927726.html it would take a lot more than that to invade Russia. And Europe is already scraping the bottom of the barrel in terms of weapons to send to Ukraine.
It took GWB six months to assemble the 500,000 men he thought necessary to invade Iraq. We wouldn't be allowed the time -or the convoys necessary - to invade Russia, since Russia has very capable anti-ship missiles. So unless we're willing to go nuclear, the idea of conquering Moscow is just a dream.
None of these were/are real wars. I mean REAL wars that have large amounts of human casualties on both sides.
Most people living today have not seen the actual might of the US Military. All we've been witness to is theatrics.
Quote:Quote:
Also incidentally... I believe this to be the big push against Russia right now when China clearly is the world's largest power guilty of the most egregious crimes against humanity and its own citizenry. Russia is a threat to nobody. But Russia also isn't easily bought off by TPTB like the US Government or fully on board with enslaving its people like China is.
Maybe this is the big push toward digital currency? Maybe this is why we currently have a white house press release hinting at the US switching toward a digital currency instead of cash?
If TPTB created digital currency and weened the world off of the USD and all other international currencies ovNOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:There were massive casualties in Iraq and Libya. To them, they were real wars.
6IXSTRINGJACK:
It's even more than that though.
We in America are beneficiaries to the fact that the REAL PTB based their whole empire off of the USD.
SIGNY: Only true to a certain extent. Bill Gates for example has moved his wealth into more durable assets: farmland and the Svarlsbaard seed bank. Others have moved their assets into stocks. Others are in the Euro or the yen. USD makes up a large part of reserve currency but something else makes up the other 40-45pct.
SIX: Yes. But it's still the base, and even amid the current volatility of everything, it's still the most reliable asset to hold onto. This is by design.
In other words, it's not a Bug that the rest of the world is suffering from inflation, recession and financial turmoil at the same time that America is. It's a Feature.
Now unless they have a particular gripe against the US that they find so irredeemably egregious that they have no choice but to switch currency, think of the logistics involved in that. TPTB wouldn't want to make a move so drastic and with such unpredictable results unless they knew full well that they had complete control over the outcome from the get go. And as you've illustrated above, any attempt at middle-management "leaders" trying to do so on their own ends up with their cities being turned to rubble.
People the world round can say all they want about the weakness of the US Military, but all that is is talk. Our military dwarfs the rest of the world's military and gets larger and larger cash infusions nearly every single year, and despite that fact it does practically nothing but "exist".
Incidentally... Screw NATO. If it weren't for the fact that it would trigger WWIII, the US Military could invade Russia today and turn Moscow to rubble by the end of the weekend if it were directed to. But TPTB have no interest in owning a world that is on fire.
SIGNY: I can't imagine how. The first thing any invading nation does is wipe out the target's air defenses: radar stations, air bases, air fleets, communications, satellites and AWACS-tyoe planes, anti-aircraft batteries. Then they can go to town with command centers, fuel depots, military bases, munitions, etc and, finally, send in the troops.
But Russia has powerful air defenses. And where does the USA launch this attack from?? Yes, we have bases across Europe, but the total number of USA troops in Europe is about 90,000. https://news.yahoo.com/explainer-how-many-american-troops-are-in-europ
e-134927726.html it would take a lot more than that to invade Russia. And Europe is already scraping the bottom of the barrel in terms of weapons to send to Ukraine.
It took GWB six months to assemble the 500,000 men he thought necessary to invade Iraq. We wouldn't be allowed the time -or the convoys necessary - to invade Russia, since Russia has very capable anti-ship missiles. So unless we're willing to go nuclear, the idea of conquering Moscow is just a dream.
SIX: None of these were/are real wars. I mean REAL wars that have large amounts of human casualties on both sides.
Quote:
SIX: Most people living today have not seen the actual might of the US Military. All we've been witness to is theatrics.
WE haven't seen a real war since the Civil War, since none of the other wars were fought on our soil.
Quote:
SIX: Also incidentally... I believe this to be the big push against Russia right now when China clearly is the world's largest power guilty of the most egregious crimes against humanity and its own citizenry. Russia is a threat to nobody. But Russia also isn't easily bought off by TPTB like the US Government or fully on board with enslaving its people like China is.
Maybe this is the big push toward digital currency? Maybe this is why we currently have a white house press release hinting at the US switching toward a digital currency insteNOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by SIGNYM:Quote:There were massive casualties in Iraq and Libya. To them, they were real wars.
6IXSTRINGJACK:
It's even more than that though.
We in America are beneficiaries to the fact that the REAL PTB based their whole empire off of the USD.
SIGNY: Only true to a certain extent. Bill Gates for example has moved his wealth into more durable assets: farmland and the Svarlsbaard seed bank. Others have moved their assets into stocks. Others are in the Euro or the yen. USD makes up a large part of reserve currency but something else makes up the other 40-45pct.
SIX: Yes. But it's still the base, and even amid the current volatility of everything, it's still the most reliable asset to hold onto. This is by design.
In other words, it's not a Bug that the rest of the world is suffering from inflation, recession and financial turmoil at the same time that America is. It's a Feature.
Now unless they have a particular gripe against the US that they find so irredeemably egregious that they have no choice but to switch currency, think of the logistics involved in that. TPTB wouldn't want to make a move so drastic and with such unpredictable results unless they knew full well that they had complete control over the outcome from the get go. And as you've illustrated above, any attempt at middle-management "leaders" trying to do so on their own ends up with their cities being turned to rubble.
People the world round can say all they want about the weakness of the US Military, but all that is is talk. Our military dwarfs the rest of the world's military and gets larger and larger cash infusions nearly every single year, and despite that fact it does practically nothing but "exist".
Incidentally... Screw NATO. If it weren't for the fact that it would trigger WWIII, the US Military could invade Russia today and turn Moscow to rubble by the end of the weekend if it were directed to. But TPTB have no interest in owning a world that is on fire.
SIGNY: I can't imagine how. The first thing any invading nation does is wipe out the target's air defenses: radar stations, air bases, air fleets, communications, satellites and AWACS-tyoe planes, anti-aircraft batteries. Then they can go to town with command centers, fuel depots, military bases, munitions, etc and, finally, send in the troops.
But Russia has powerful air defenses. And where does the USA launch this attack from?? Yes, we have bases across Europe, but the total number of USA troops in Europe is about 90,000. https://news.yahoo.com/explainer-how-many-american-troops-are-in-europ
e-134927726.html it would take a lot more than that to invade Russia. And Europe is already scraping the bottom of the barrel in terms of weapons to send to Ukraine.
It took GWB six months to assemble the 500,000 men he thought necessary to invade Iraq. We wouldn't be allowed the time -or the convoys necessary - to invade Russia, since Russia has very capable anti-ship missiles. So unless we're willing to go nuclear, the idea of conquering Moscow is just a dream.
SIX: None of these were/are real wars. I mean REAL wars that have large amounts of human casualties on both sides.
I'm not arguing that. To them it was a real war. To us it was newspaper headlines until we became numb to them and then they'd move on to the next thing like Hurricane Katrina or Michael Jackson's death.
That's why I said massive casualties on both sides. But since these are wars that we The People have no interest in fighting, there would have been a revolt if they started sending in our kids and young men to die like they did in WWII. Particularly after the shitshow illegal wars in Viet Nam and Korea.
Quote:Quote:
SIX: Most people living today have not seen the actual might of the US Military. All we've been witness to is theatrics.
WE haven't seen a real war since the Civil War, since none of the other wars weNOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Brazil and Argentina Are Discussing Whether to Combine Currencies
https://uk.news.yahoo.com/brazil-argentina-discussing-whether-combine-
211723062.html
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Flee California?
Here’s how the second-biggest bank collapse in U.S. history happened in just 48 hours
https://www.cnbc.com/2023/03/10/silicon-valley-bank-collapse-how-it-ha
ppened.html
Within 48 hours, a panic induced by the very venture capital community that SVB had served and nurtured ended the bank's 40-year-run.
Regulators shuttered SVB Friday and seized its deposits in the largest U.S. banking failure since the 2008 financial crisis and the second-largest ever. The company's downward spiral began late Wednesday, when it surprised investors with news that it needed to raise $2.25 billion to shore up its balance sheet. What followed was the rapid collapse of a highly-respected bank that had grown alongside its technology clients.
Even now, as the dust begins to settle on the second bank wind-down announced this week, members of the VC community are lamenting the role that other investors played in SVB's demise.
"This was a hysteria-induced bank run caused by VCs," Ryan Falvey, a fintech investor at Restive Ventures, told CNBC. "This is going to go down as one of the ultimate cases of an industry cutting its nose off to spite its face."
The episode is the latest fallout from the Federal Reserve's actions to stem inflation with its most aggressive rate hiking campaign in four decades. The ramifications could be far-reaching, with concerns that startups may be unable to pay employees in coming days, venture investors may struggle to raise funds, and an already-battered sector could face a deeper malaise.
NOTIFY: N | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
The Woke took full advantage of that VC while it was available and destroyed any value that their portion of it had.
Between that and GPT, all of those millennials and old zoomers with their fancy college degrees are going to be put out on their asses where they belong. With no skills of any value to fall back on.
They'd better hone those beggar skills if Mommy and Daddy don't let them move back in.
--------------------------------------------------
Growing up in a Republic was nice... Shame we couldn't keep it.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Apparently TWO banks collapsed this week. Silicon Valley Bank (SVB) was the bigger one, and also one called (IIRC) Silvergate.
According to a vid I listened to, both banks got caught on the wrong side of the Fed's interest rate increases. SVB specialized in venture capital funding. Silvergate was the real world interface between cryptocurrency and dollars, exchanging crypto for dollar and vice versa.
Both were cash rich. What they did was put their money into 10-year Treasuries at low interest rates "back then", but when interest rates rose the value of the Treasuries fell. Faced with a surge in withdrawals (in the case of Silvergate it was the drop in crypo prices, I don't remember what happened to SVB) they had to sell their Treasuries at a loss, which shook the confidence of depositors and shareholders and led to, in essence, bank runs. If they had a been allowed to hold their Treasuries to maturity all would have been well; it was a mismatch between long term assets and short term demand.
-----------
Pity would be no more,
If we did not MAKE someone poor - William Blake
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
I think the real problem for the dollar is here:
Quote:
Why Iran and Saudi Arabia making nice is a very big deal
China’s dealmaking heralds the post-America Middle East
https://www.vox.com/world-politics/2023/3/10/23634464/deal-saudi-arabi
a-iran-china-explained
I just grabbed the first headline from my search to show that this is real news.
I hate to keep beating this particular horse, but the reason why the American dollar is the world reserve currency is because, until lately, ALL oil producers (including Russia) accepted only USD for oil (petrodollar). And since oil is vital to any economy and by far the THE biggest traded commodity in the world, every nation that bought oil... and that's pretty much all of them... needed dollars in their national piggy-banks for oil trade.
What this article DOESN'T say is that Saudi Arabia is now considering accepting something other than dollars for oil. And if/since the bigger producers (Russia, Saudi Arabia, Iran, Venezuela) are either locked out of the dollar trade or considering alternate currencies (perhaps the oetroyuan or the upcoming BRICS common currency) the dollar will become just a currency among currencies, and lose its value as THE reserve currency.
I don't think the BRICS (which Saudi Arabia is seriously considering joining) will refuse dollars bc I don't think China has an interest in popping the value if their USD foreign reserves. But they will accept some other currency (ies).
So now the USA, which is not oil-indeoendent, will need to offer something other than devalued dollars, or we will need to offer MORE dollars, with which to trade
And just to remind you how big a deal this us to us, out if all of the bullshit brought up for destroying Iraq and Libya (WMD! Yellow cake! Massacres!) -none of it true- the only underlying reason important enough to justify all that killing and expense was that BOTH nations were about to embark on non-dollar oil trade. THAT, in the eyes of the Deep State, is a fatal mistake.
-----------
Pity would be no more,
If we did not MAKE someone poor - William Blake
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by SIGNYM:
Apparently TWO banks collapsed this week. Silicon Valley Bank (SVB) was the bigger one, and also one called (IIRC) Silvergate.
According to a vid I listened to, both banks got caught on the wrong side of the Fed's interest rate increases. SVB specialized in venture capital funding. Silvergate was the real world interface between cryptocurrency and dollars, exchanging crypto for dollar and vice versa.
Both were cash rich. What they did was put their money into 10-year Treasuries at low interest rates "back then", but when interest rates rose the value of the Treasuries fell. Faced with a surge in withdrawals (in the case of Silvergate it was the drop in crypo prices, I don't remember what happened to SVB) they had to sell their Treasuries at a loss, which shook the confidence of depositors and shareholders and led to, in essence, bank runs. If they had a been allowed to hold their Treasuries to maturity all would have been well; it was a mismatch between long term assets and short term demand.
-----------
Pity would be no more,
If we did not MAKE someone poor - William Blake
Trump Era Roll Back of Bank Regulations Resurfaces Amid SVB Collapse
Amid the collapse of Silicon Valley Bank (SVB), some commentators have claimed a Trump-era rollback of financial regulations may have contributed to the situation.
https://www.msn.com/en-us/money/markets/trump-era-roll-back-of-bank-re
gulations-resurfaces-amid-svb-collapse/ar-AA18vuPe?ocid=msedgdhp&pc=U531&cvid=9605bdd61a2c4c0abec275770545fd22&ei=143
T
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:6ix, there was $175 billion in that bank. How much was lost? $15 billion. The depositors will get back around $160 billion. 6ix, you write as if the depositors lost all $175 billion, which strongly suggests you are a nincompoop about how banks work.
Originally posted by 6IXSTRINGJACK:
The Woke took full advantage of that VC while it was available and destroyed any value that their portion of it had.
Between that and GPT, all of those millennials and old zoomers with their fancy college degrees are going to be put out on their asses where they belong. With no skills of any value to fall back on.
They'd better hone those beggar skills if Mommy and Daddy don't let them move back in.
The real losers are the SVB stockholders. The price per share was $284.83 on March 6th. By March 9th the price was $106.04 when trading was halted. That price could go to zero. Their loss could be another $6.28 billion. Losses for individuals depends on when they bought their shares because the price was as high as $727.79 in 2021. Very poor investment for some who bought at the peak.
https://www.google.com/finance/quote/SIVB:NASDAQ?authuser=0&window
=MAX
Some $175 billion in customer accounts were taken over by the Federal Deposit Insurance Corporation (FDIC), which is now tasked with returning money to the bank’s customers. $91 billion worth of Treasuries (a usually safe investment) that the bank bought with customers’ deposits, had lost some $15 billion in value due to interest rate hikes.
https://time.com/6262009/silicon-valley-bank-deposit-insurance/
The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at
https://www.mediafire.com/folder/1uwh75oa407q8/Firefly
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
This is the MSN article
Quote:in place of re-instituting the more meaningful Glass-Steagall Act, axed by Bill Clinton in 1999.
Amid the collapse of Silicon Valley Bank (SVB), some commentators have claimed a Trump-era rollback of financial regulations may have contributed to the situation.
While largely unknown outside California's Silicon Valley tech corridor, SVB has for decades been a go-to financial institution for the country's technology and health start-ups. One of the 20 biggest banks in the United States, it had over $200 billion in assets by the end of last year, according to CNN.
As of Friday, however, SVB was left in freefall as clients began a run on the institution, spurred on by higher interest rates and other factors, resulting in a spiraling chain reaction that has threatened to sink the institution and leave its customers in financial jeopardy.
In the fallout of Friday's run on the bank, some reports noted that a rollback of banking regulations by former President Donald Trump might have weakened SVB's ability to manage risks associated with interest rates. In 2018, according to The New York Times, Trump signed a bill that axed regulatory requirements for regional banks with less than $250 billion in assets.
Under the new rules, such institutions no longer had to submit to "stress testing" by the Federal Reserve and were no longer required to keep a certain amount of cash on hand to protect against the effects of financial shocks, the newspaper reported.
The Times noted in its report that the bill was championed by SVB CEO Greg Becker. Becker had pressed lawmakers in Congress to lessen regulation that placed higher scrutiny on certain banks, claiming that SVB had a "low risk profile of our activities and business model." By 2018, his bank had spent roughly $500,000 to lobby for the changes that Trump ultimately signed into law, according to The Lever, an investigative news outlet.
The rules rolled back by the bill were first introduced in 2010 by the Dodd-Frank Wall Street Reform and Consumer Protection Act, a sweeping reform law signed by former President Barack Obama
Quote:
to address issues in the financial sector in the wake of the 2007-2008 global financial crisis and the Great Recession.As noted in a tweet on Saturday from businessman and former Obama economic adviser Robert Wolf, the Dodd-Frank Act originally required banks with over $50 billion in assets to submit to stress testing.
1999.
As of Saturday afternoon, Trump has not commented on SVB. Newsweek reached out to his communications team via email for comment.
In the wake of the run, California regulators shut down SVB and turned over control of it to the Federal Deposit Insurance Corporation (FDIC). It has since been reported that the bank had not employed a chief risk officer in the months leading up to Friday's collapse and had not insured roughly 90 percent of its deposits.
Unless someone forensically audits SVB and applies "stress testing" to its balance sheets, we will never know if "stress testing" would have saved the bank.
But this bank failure is not the death knell of the dollar. If anything it's more of an indicator than a cause of financial disturbances. The value of the dollar is going to be determined by much larger factors- America's total debt load (government, corporate, individual, financial) and money issuance, whether there is anything of value behind the dollar, whether other nations will continue to trust a "weaponized" dollar, and whether other nations will find an alternative for trade. And if they do, whether choose to torpedo the dollar suddenly or just let it sink on its own.
-----------
Pity would be no more,
If we did not MAKE someone poor - William Blake
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:Bullshit from you, Signym. We already know that the bonds the bank held dropped in value by $15 billion, a loss large enough to bankrupt the bank: "$91 billion worth of Treasuries (a usually safe investment) that the bank bought with customers’ deposits, had lost some $15 billion in value due to interest rate hikes."
Originally posted by SIGNYM:
Unless someone forensically audits SVB and applies "stress testing" to its balance sheets, we will never know if "stress testing" would have saved the bank.
https://time.com/6262009/silicon-valley-bank-deposit-insurance/
We already know why the bank purchased too many bonds. It is as easy as 1,2,3:
1) SVB’s president, Greg Becker, pushed for weaker banking regulations, telling congress to lift “enhanced prudential standards…given the low risk profile of our activities,” as The Lever reported. Two former staffers for House Speaker Kevin McCarthy are registered lobbyists for Silicon Valley Bank, with one specifically lobbying on the 2018 Dodd-Frank repeal law that experts say made this crisis more likely.
2) House Speaker Kevin McCarthy, who himself pushed for the repeal of significant pieces of the landmark Wall Street reform legislation known as Dodd-Frank. “We’re going to move this Senate bill directly to the president’s desk to ensure these reforms help the economy to grow further by making community banks stronger,” McCarthy said of the legislation in 2018. “This is going to free up a great deal of capital and this will help a lot.”
3) A chief culprit, economists say, is legislation signed into law by President Trump in 2018, which rolled back key parts of the Dodd-Frank banking regulations passed in the wake of the 2008 financial crisis.
“This was a 100 percent avoidable problem,” economist Dean Baker told The Intercept in an email, pointing to the Dodd-Frank repeal bill. “That bill raised the asset threshold above which banks have to undergo stress tests from $50 billion to $250 billion. SVB would have been required to undergo regular stress tests before the revision; among the stresses you look at are sharp rises in interest rates, which is apparently what did in SVB. Presumably, if its books had been subject to this test, the risk would have been detected and they would have been required to raise more capital and/or shed deposits.”
https://web.archive.org/web/20230312035036/https://theintercept.com/20
23/03/11/silicon-valley-bank-used-former-mccarthy-staffers-to-weaken-regulations-lobby-fdic/
Signym, the situation is absolutely simple to understand, unless you are obfuscating because you are a crook or because you don't know what you write about.
The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at
https://www.mediafire.com/folder/1uwh75oa407q8/Firefly
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Dodd Frank is notoriously complicated. I have no idea what its capitalization requirements are and what the stress tests consist of and I'll bet you don't either.
But knowing how MSN loves to take potshots at Trump, I noticed that they hedged their statements. "claimed" "may have". Maybe they don't want to get sued for libel publishing something they were almost certin wasn't true.
But like I posted, that's neither here nor there AFA the value if the dollar.
-----------
Pity would be no more,
If we did not MAKE someone poor - William Blake
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by second:Quote:6ix, there was $175 billion in that bank. How much was lost? $15 billion. The depositors will get back around $160 billion. 6ix, you write as if the depositors lost all $175 billion, which strongly suggests you are a nincompoop about how banks work.
Originally posted by 6IXSTRINGJACK:
The Woke took full advantage of that VC while it was available and destroyed any value that their portion of it had.
Between that and GPT, all of those millennials and old zoomers with their fancy college degrees are going to be put out on their asses where they belong. With no skills of any value to fall back on.
They'd better hone those beggar skills if Mommy and Daddy don't let them move back in.
Nope. You're just a stupid jagoff that isn't catching what I'm throwing.
I'm not even going to discuss money with somebody as stupid as you.
--------------------------------------------------
Growing up in a Republic was nice... Shame we couldn't keep it.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:Signym, you are idiot that writes well. Here is something you will try to obfuscate your way around Republican irresponsibility in the same way as you are doing about a bank failing: Raising the debt ceiling.
Originally posted by SIGNYM:
Dodd Frank is notoriously complicated. I have no idea what its capitalization requirements are and what the stress tests consist of and I'll bet you don't either.
But knowing how MSN loves to take potshots at Trump, I noticed that they hedged their statements. "claimed" "may have". Maybe they don't want to get sued for libel publishing something they were almost certin wasn't true.
But like I posted, that's neither here nor there AFA the value if the dollar.
Republicans are claiming that not raising the ceiling won't be a disaster while the Treasury Secretary says, in the most polite way, that they are in error.
Quote:https://www.cbsnews.com/news/janet-yellen-debt-ceiling-fight-republica
The way to ensure the government can keep paying its bills is to raise or suspend the debt limit, Treasury Secretary Janet Yellen told lawmakers Friday — not prioritize payments, as some Republicans have proposed.
"In my assessment and those of economists across the board, a default on our debt would trigger an economic and financial catastrophe," Yellen said. "I urge all members of Congress to come together to address the debt limit without conditions and without waiting until the last minute."
n-plan-prioritize-payments-default/
That is the most forceful statement from an official that I have ever seen about the catastrophe Republicans will cause if they continue to stupidly misunderstand banking, borrowing and debt. A more forceful warning from Janet Yellen would be "If the US defaults on any debt, no matter how small or short a default, the world banking system will slit the throat of the US. It will be the Death of the Dollar." But being more certain and forceful will not convince the average Republican Congressmen. Janet Yellen has to hope that not every Republican Congressman is as ignorant as 6ixStringJack about banking and debt.
The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at
https://www.mediafire.com/folder/1uwh75oa407q8/Firefly
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Yellen is a Diversity Hire idiot.
--------------------------------------------------
Growing up in a Republic was nice... Shame we couldn't keep it.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by 6IXSTRINGJACK:
The Woke took full advantage of that VC while it was available and destroyed any value that their portion of it had.
Between that and GPT, all of those millennials and old zoomers with their fancy college degrees are going to be put out on their asses where they belong. With no skills of any value to fall back on.
They'd better hone those beggar skills if Mommy and Daddy don't let them move back in.
--------------------------------------------------
Growing up in a Republic was nice... Shame we couldn't keep it.
Hehe...
While Silicon Valley Bank collapsed, top executive pushed ‘woke’ programs
https://nypost.com/2023/03/11/silicon-valley-bank-pushed-woke-programs
-ahead-of-collapse/
Quote:
A head of risk management at Silicon Valley Bank spent considerable time spearheading multiple “woke” LGBTQ+ programs, including a “safe space” for coming out stories, as the firm catapulted toward collapse.
Jay Ersapah, the boss of Financial Risk Management at SVB’s UK branch, launched initiatives such as the company’s first month-long Pride campaign and a new blog emphasizing mental health awareness for LGBTQ+ youth.
“The phrase ‘you can’t be what you can’t see’ resonates with me,’” Ersapah was quoted as saying on the company website.
“As a queer person of color and a first-generation immigrant from a working-class background, there were not many role models for me to ‘see’ growing up.”
Her efforts as the company’s European LGBTQIA+ Employee Resource Group co-chair earned her a spot on SVB’s “outstanding LGBT+ Role Model Lists 2022,” a list shared in a company post just four months before the bank was shut down by federal authorities over liquidity fears.
You don't say.
Green, Woke, and Now Broke — How SVB Became the 2nd Biggest Bank Failure in U.S. History
https://www.breitbart.com/economy/2023/03/11/pinkerton-green-woke-and-
now-broke-how-svb-became-the-2nd-biggest-bank-failure-in-u-s-history/
Yeah... This is going to kill ESG too. Good.
Tech execs race to save startups from 'extinction' after SVB collapse
https://www.msn.com/en-us/money/companies/tech-execs-race-to-save-star
tups-from-extinction-after-svb-collapse/ar-AA18w9dB
Quote:
Aiming to avoid what Garry Tan, the CEO of startup accelerator Y Combinator, called a potential "extinction level event" in the tech sector, industry executives moved quickly to do what they could to save small businesses.
--------------------------------------------------
Growing up in a Republic was nice... Shame we couldn't keep it.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Death of the dollar huh. The Chinese economy is in freefall and Russia has collapsed and is still falling. They're fucked for decades.
Death of the dollar my ass.
China Is Suffering A Major Financial Crisis
https://www.forbes.com/sites/miltonezrati/2022/10/03/china-is-sufferin
g-a-major-financial-crisis/?sh=2acf73af4775
T
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by THG:
Death of the dollar my ass.
Every once in a while Ted gets something right.
Nobody can be wrong all of the time.
--------------------------------------------------
Growing up in a Republic was nice... Shame we couldn't keep it.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:I have seen your kind of behavior from every Trumptard I know, both the ones in important positions and the ones who are unemployed. You Trumptards never stop for a moment and make the connection between your stupid behavior and the mess you've made or will make. Instead, it is always somebody else's fault, not yours, for what happens. And so the majority of Trumptard Congressmen will not vote to raise the debt ceiling.
Originally posted by 6IXSTRINGJACK:
Yellen is a Diversity Hire idiot.
History of the United States debt ceiling
https://en.wikipedia.org/wiki/History_of_the_United_States_debt_ceilin
g
The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at
https://www.mediafire.com/folder/1uwh75oa407q8/Firefly
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Quote:
Originally posted by second:Quote:I have seen your kind of behavior from every Trumptard I know, both the ones in important positions and the ones who are unemployed. You Trumptards never stop for a moment and make the connection between your stupid behavior and the mess you've made or will make. Instead, it is always somebody else's fault, not yours, for what happens. And so the majority of Trumptard Congressmen will not vote to raise the debt ceiling.
Originally posted by 6IXSTRINGJACK:
Yellen is a Diversity Hire idiot.
History of the United States debt ceiling
https://en.wikipedia.org/wiki/History_of_the_United_States_debt_ceilin
g
The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at
https://www.mediafire.com/folder/1uwh75oa407q8/Firefly
Shut the fuck up, idiot.
--------------------------------------------------
Growing up in a Republic was nice... Shame we couldn't keep it.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME
Signature Bank folds.
--------------------------------------------------
Growing up in a Republic was nice... Shame we couldn't keep it.
NOTIFY: Y | REPLY | REPLY WITH QUOTE | PERMALINK | TOP | HOME