Click to Translate to English Click to Translate to French  Click to Translate to Spanish  Click to Translate to German  Click to Translate to Italian  Click to Translate to Japanese  Click to Translate to Chinese Simplified  Click to Translate to Korean  Click to Translate to Arabic  Click to Translate to Russian  Click to Translate to Portuguese  Click to Translate to Myanmar (Burmese)

PANDEMIC ALERT LEVEL
123456
Forum Home Forum Home > Main Forums > General Discussion
  New Posts New Posts RSS Feed - De-Dollar-ization
  FAQ FAQ  Forum Search   Events   Register Register  Login Login

Now tracking the new emerging South Africa Omicron Variant

De-Dollar-ization

 Post Reply Post Reply
Author
Message
Dutch Josh View Drop Down
Adviser Group
Adviser Group


Joined: May 01 2013
Location: Arnhem-Netherla
Status: Offline
Points: 94027
Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Topic: De-Dollar-ization
    Posted: March 29 2023 at 11:46pm

[url]https://en.wikipedia.org/wiki/Dedollarisation[/url] or https://en.wikipedia.org/wiki/Dedollarisation ;

Dedollarisation is a process of substituting US dollar as the currency used for (i) trading oil and/ or other commodities (i.e. petrodollar), (ii) buying US dollars for the forex reserves, (iii) bilateral trade agreements, and (iv) dollar-denominated assets.

The U.S. dollar began to displace the pound sterling as international reserve currency from the 1920s since it emerged from the First World War relatively unscathed and since the United States was a significant recipient of wartime gold inflows.[1] After the U.S. emerged as an even stronger global superpower during the Second World War, the Bretton Woods Agreement of 1944 established the post-war international monetary system, with the U.S. dollar ascending to become the world's primary reserve currency for international trade, and the only post-war currency linked to gold at $35 per troy ounce.[2]

After the establishment of the Bretton Woods system, the US dollar is used as the medium for international trade. The United States Department of the Treasury exercises considerable oversight over the SWIFT financial transfers network,[3] and consequently has a huge sway on the global financial transactions systems, with the ability to impose sanctions on foreign entities and individuals.[4]

DJ, Countries moving away from oil/energy trade in US$ faced "US/NATO interventions". The US was able to enforce global oil/energy trade in US$....

Central bank reserves[edit]

According to the IMF's Currency Composition of Official Foreign Exchange Reserves (COFER) survey the share of reserves held in U.S. dollars by central banks fell from 71 percent in 1999 to 59 percent in 2021.[7]

DJ, The main reason for global conflict is the US/NATO "defending" a global US$, BRICS (Brazil-Russia-India-China-South Africa) + new likely members Argentina, Iran, Saudi Arabia, Mexico...The SCO moving away from the US$

----------

The Duran [url]https://www.youtube.com/watch?v=s10hK-1npzs&t=4s[/url] or https://www.youtube.com/watch?v=s10hK-1npzs&t=4s ; Russia obsession drives Blinken to warn India ahead of G20

Link to [url]https://www.indianarrative.com/opinion-news/why-india-should-take-the-russia-china-summit-in-its-stride-123929.html[/url] or https://www.indianarrative.com/opinion-news/why-india-should-take-the-russia-china-summit-in-its-stride-123929.html ;

The prospects of a joint communiqué emerging from the G 20 summit in September in India are becoming dim. The G20 meeting of the Finance Ministers/Central Bank Governors as well that of the Foreign Ministers ended with the Chair’s summary and not a joint document because no consensus could be reached on how the Ukraine conflict should be reflected in it. The West remains determined to include language condemning Russia in all joint statements whereas Russia, with China’s support, has hardened its position and is no longer willing to accept the language it had agreed to at the G 20 summit at Bali, in part because of India’s constructive diplomacy.

-

If India can pursue a degree of independence in its foreign policy despite open pressures from the US to dilute ties with Russia, why should one assume that Russia will not exercise its independent judgment on its relations with India and will yield to any Chinese pressure? If Russia is satisfied with our neutrality on the proxy war between it and the West in Ukraine, why should we not be satisfied if Russia is neutral on issues between India and China? We should take a balanced view on such matters, recognising of course the need to navigate very carefully in the choppy waters ahead. Our expectations from a successful G 20 summit need to become much more realistic.

(Kanwal Sibal is India’s former Foreign Secretary and Ambassador to Russia. Views expressed are personal and exclusive to India Narrative)

DJ, The position of India is critical-in my view. US blackmail "If you are not with us you are against us" did already push Pakistan, Türkiye, Saudi Arabia, Egypt, Indonesia towards Russia, China...India could go for "national India interests"-wich still would leave some room for a global role of the US$...Again confrontation instead of diplomacy is hurting the US...

We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
Back to Top
Dutch Josh View Drop Down
Adviser Group
Adviser Group


Joined: May 01 2013
Location: Arnhem-Netherla
Status: Offline
Points: 94027
Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: March 30 2023 at 12:02am

DJ-Healthcare, dealing with global healthcrises, needs a functioning economy...Currencies that can be used and trusted...

[url]https://www.youtube.com/watch?v=rbVd2SAbzdI[/url] or https://www.youtube.com/watch?v=rbVd2SAbzdI ; A Patron of Democracy at Work asks: "I'd love to hear your thoughts on what a world looks like if the US dollar loses its primacy. What does the "economy" look like in the USA? Will there be a huge collapse?" This is Professor Richard Wolff's video response. 

In short; a $-crisis could be as bad as a banking-crisis...depending on speed and actions...

[url]https://en.wikipedia.org/wiki/Hyperinflation[/url] or https://en.wikipedia.org/wiki/Hyperinflation ;

In economicshyperinflation is a very high and typically accelerating inflation. It quickly erodes the real value of the local currency, as the prices of all goods increase. This causes people to minimize their holdings in that currency as they usually switch to more stable foreign currencies.[1] When measured in stable foreign currencies, prices typically remain stable.

Unlike low inflation, where the process of rising prices is protracted and not generally noticeable except by studying past market prices, hyperinflation sees a rapid and continuing increase in nominal prices, the nominal cost of goods, and in the supply of currency.[2] Typically, however, the general price level rises even more rapidly than the money supply as people try ridding themselves of the devaluing currency as quickly as possible. As this happens, the real stock of money (i.e., the amount of circulating money divided by the price level) decreases considerably.[3]

Hyperinflation is often associated with some stress to the government budget, such as wars or their aftermath, sociopolitical upheavals, a collapse in aggregate supply or one in export prices, or other crises that make it difficult for the government to collect tax revenue. A sharp decrease in real tax revenue coupled with a strong need to maintain government spending, together with an inability or unwillingness to borrow, can lead a country into hyperinflation.[3]

DJ, The US/NATO is at war with Russia-Iran-China a.o. The US did use the $ as a weapon, no $ in the past did mean no energy/international trade often...

[url]https://halturnerradioshow.com/index.php/en/news-page/world/russia-has-halted-all-nuclear-notifications-to-usa-including-test-launches[/url] or https://halturnerradioshow.com/index.php/en/news-page/world/russia-has-halted-all-nuclear-notifications-to-usa-including-test-launches Russia, China, Iran have given up talking with the US...

There are some alternatives for the US$;

-Petro-Yuan, China currency

-A mix of currencies, India buying goods for Rupees-Selling goods for Yuan, Rubles, Euro's etc.

-"Take over" the €/Euro...second widespread currency after the US$

-Mix of major currencies Euro, Rupee, Ruble, Yuan...and creating new (digital) currencies for Africa, Latin America, rest of Asia...

DJ-A "strategic step" could be trying to move the EU away from the US-use the €/Euro for that goal..."Technical"  point is you need enough of currencies to do international trade...Replacing the US$ already is a very big step. 

We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
Back to Top
Dutch Josh View Drop Down
Adviser Group
Adviser Group


Joined: May 01 2013
Location: Arnhem-Netherla
Status: Offline
Points: 94027
Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: March 30 2023 at 12:08am

[url]https://halturnerradioshow.com/index.php/en/news-page/world/russia-has-halted-all-nuclear-notifications-to-usa-including-test-launches[/url] or https://halturnerradioshow.com/index.php/en/news-page/world/russia-has-halted-all-nuclear-notifications-to-usa-including-test-launches ;

The President of Kenya today announced to all citizens they should get rid of any U.S. Dollars they may be holding because they will become worth less within weeks.

This stunning announcement gives credibility to a RUMOR that has been circulating for over a year, that 142 countries around the world have secretly agreed to what they call "Operation Sandman."

According to the RUMOR, Operation Sandman will "put the US Dollar to sleep" by having all 142 countries repudiate the currency on the same day, and refuse to continue accepting it for payment in Trade.

DJ Since a "rest of the world" goal is to stop US/NATO agression gone crazy "high speed dumping" of US$, US bonds, [url]https://halturnerradioshow.com/index.php/en/news-page/world/african-nation-chad-has-nationalized-assets-of-exxon-mobil[/url] or https://halturnerradioshow.com/index.php/en/news-page/world/african-nation-chad-has-nationalized-assets-of-exxon-mobil taking over US companies....DJ-maybe even US military bases in many countries, in a "major step" could "shock" the US ? 

Some questions on this : 

-Is it possible to cripple the US that much in an economic way the US has to stop its wars ? 

DJ, Time matters...The rest of the world using much less US$ would mean lots of US$ return to the US...The US did create "trillions" of US$...so -since most of them were NOT used in the US itself a "massive return" of US$ to the US will push inflation...

However central banks can create money but also "de-create money"....but is such a process possible without destroying the US economy...? Can a country go for "two currencies"-the US-based-$ and "international $"...with the US$ still save enough for (regional) trade ? I think that depends on US trade partners...

Before the introduction of the Euro a lot of EU countries did have "two currencies" ; their own German Mark, French/Belgian Franc, NL Gulden...and the (digital) ECU (European CUrrency...already in use for EU trade...

A cheap currency may be good for export...however only if that export is not based on importing (basic) goods...The US did outsource a lot of its economy-"real jobs"-to low income countries...(of course healthcare, education, police also are "real jobs" however they may not produce export products). 

-Are there enough countries willing to "drop" the $-with a goal to destroy the US ?

DJ-Yes...Russia, China themselves may already be major players...Lots of other countries may not have the goal to destroy the US by dropping the $ but they may go for saving their own economy...So not actively seeking to destroy the US-but also not much interest/ability to save the US...

-Role of EU/UK ? 

DJ, the EU, UK are not the "major players" in the world any longer...[url]https://en.wikipedia.org/wiki/Purchasing_power_parity[/url] or https://en.wikipedia.org/wiki/Purchasing_power_parity and [url]https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)[/url] or https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP) Looking at GDP per PPP China is the #1 economy, the EU still would be #2...US-#3, India #4...

However-can the US long term compete with Asia, other regions-good enough to make the US "best trading partner" for the EU/UK ? No...the US economy is not that different from the EU/UK...they all may need to import goods like energy...Have a "service economy"...Long term trade between the US and EU on the present basis would harm both economies...

So I think "Asia/BRICS/OPEC+/SCO " may go for "gaps" between the US and EU....Present European "leaders/puppets" face growing wide opposition-from both companies and trade unions/workers...

So what to do ? 

DJ-The US has to go for diplomacy...the next step in confrontation simply is nuclear war...Financial wars may not be able to stop the US going nuclear...the US has "enough nukes" to "fight the rest of the world"...but it would be an act of insanity...The sad reality is the present US political elite is in a psychosis...

We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
Back to Top
Dutch Josh View Drop Down
Adviser Group
Adviser Group


Joined: May 01 2013
Location: Arnhem-Netherla
Status: Offline
Points: 94027
Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: March 30 2023 at 2:07am

Financial wars are NOT new; [url]https://en.wikipedia.org/wiki/Operation_Bernhard[/url] or https://en.wikipedia.org/wiki/Operation_Bernhard ;

Operation Bernhard was an exercise by Nazi Germany to forge British bank notes. The initial plan was to drop the notes over Britain to bring about a collapse of the British economy during the Second World War. The first phase was run from early 1940 by the Sicherheitsdienst (SD) under the title Unternehmen Andreas (Operation Andreas). The unit successfully duplicated the rag paper used by the British, produced near-identical engraving blocks and deduced the algorithm used to create the alpha-numeric serial code on each note. The unit closed in early 1942 after its head, Alfred Naujocks, fell out of favour with his superior officer, Reinhard Heydrich.

The operation was revived later in the year; the aim was changed to forging money to finance German intelligence operations. Instead of a specialist unit within the SD, prisoners from Nazi concentration camps were selected and sent to Sachsenhausen concentration camp to work under SS Major Bernhard Krüger. The unit produced British notes until mid-1945; estimates vary of the number and value of notes printed, from £132.6 million up to £300 million. By the time the unit ceased production, they had perfected the artwork for US dollars, although the paper and serial numbers were still being analysed. The counterfeit money was laundered in exchange for money and other assets. Counterfeit notes from the operation were used to pay the Turkish agent Elyesa Bazna—code named Cicero—for his work in obtaining British secrets from the British ambassador in Ankara, and £100,000 from Operation Bernhard was used to obtain information that helped to free the Italian leader Benito Mussolini in the Gran Sasso raid in September 1943.

DJ, Germany created UK pounds to pay for overseas operations...However the damage to the UK economy was only limited...

It is the policy of the Bank of England to redeem all withdrawn notes for current currency at the face value shown on the note, except for counterfeit currency.[100][n 14] Examples of counterfeits from Operation Bernhard have appeared at auction and been sold through dealers for a higher face value than the original £5.[101][102] There are also examples of the notes in the museum of the National Bank of Belgium and the Bank of England Museum.[4][103] The International Spy Museum holds an example of an Operation Bernhard printing plate.[104]

DJ...some of those fake-Pounds became collectors items even...

The UK Pound [url]https://en.wikipedia.org/wiki/Pound_sterling#Exchange_rate[/url] or https://en.wikipedia.org/wiki/Pound_sterling#Exchange_rate did go from 25,76% of global payments in 1965 (US$ then 72,93%) to 4,78% in 2021 (US$ then 58,81%) so the UK pound lost over 20% of its share in 56 years...The US$ lost 14% of its "global role"..The Euro now is just over 20% of global trade-in 2009 it was over 27%...

But a sharp drop in a short time of the leading global currency would be "new"...even if it was not a part of economic-financial warfare...

Another example from recent history [url]https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic#Causes[/url] or https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic#Causes ;

The cause of the immense acceleration of prices seemed unclear and unpredictable to those who lived through it, but in retrospect, it was relatively simple. The Treaty of Versailles imposed a huge debt on Germany that could be paid only in gold or foreign currency. With its gold depleted, the German government attempted to buy foreign currency with German currency,[9] equivalent to selling German currency in exchange for payment in foreign currency, but the resulting increase in the supply of German marks on the market caused the German mark to fall rapidly in value, which greatly increased the number of marks needed to buy more foreign currency.

That caused German prices of goods to rise rapidly, increasing the cost of operating the German government, which could not be financed by raising taxes because those taxes would be payable in the ever-falling German currency. The resulting deficit was financed by some combination of issuing bonds and simply creating more money, both increasing the supply of German mark-denominated financial assets on the market and so further reducing the currency's price. When the German people realized that their money was rapidly losing value, they tried to spend it quickly. That increased monetary velocity caused an ever-faster increase in prices, creating a vicious cycle.[35]

The government and the banks had two unacceptable alternatives. If they stopped inflation, there would be immediate bankruptcies, unemployment, strikes, hunger, violence, collapse of civil order, insurrection and possibly even revolution.[36] If they continued the inflation, they would default on their foreign debt.

However, attempting to avoid both unemployment and insolvency ultimately failed when Germany had both.[36]

DJ...there are some similarities between Germany after W.W.1 and the present US...Both countries faced debts they could impossibly pay...

A major difference however the US is going for confrontation with-sooner or later-all other countries...The peace treaty after W.W.1 did not have the goal to destroy Germany...

But even if most countries would be willing to "help" the US the US debts are that major there are limits to what other countries can do...

-Euro-Dollar as one currency for (most of ) the EU, US, Canada would destroy the Euro...not help Canada either...

-Realistic US leadership, restoring trust in the US as a reasonable partner, would help...However the "biden-cult" looking for ways to arrest trump only increases worries on the US elite...

So...can the US go bankrupt ???? [url]https://www.usnews.com/opinion/economic-intelligence/articles/2016-12-01/myths-and-facts-about-the-us-federal-debt#:~:text=Myth%3A%20The%20government%20can't,needs%20to%20pay%20its%20obligations.[/url] or https://www.usnews.com/opinion/economic-intelligence/articles/2016-12-01/myths-and-facts-about-the-us-federal-debt#:~:text=Myth%3A%20The%20government%20can't,needs%20to%20pay%20its%20obligations. Technically speaking, the government can't go bankrupt because it only promised to hand over a certain number of dollars; it didn't promise what the value of those dollars would be. Because the value of the dollars was never specified, the government can print enough to render the dollars nearly worthless. To the rest of us, the effect is the same as the government going bankrupt.

-

Myth: The government can solve its financial problems by raising taxes.

Fact: The government raises tax rates, not taxes. Whether higher rates generate more taxes depends on how people react to the new rates. Since the 1950s, the federal government's revenue has consistently averaged about 18 percent of the economy.

DJ...Inflation could be another way of taxation...

What effect would "high speed de-dolarization" mixed with nationalizing US companies/military bases have ? The proces of de-dollarization is already going on...In combination with QE/creating $ for more US wars trust in the US is dropping fast...

The idea EU companies would move to the US because the US has cheap energy is wrong...EU/other companies go where the customers are-BRICS...the US may offer cheap energy-so do others...but at least they have "real currencies"....and a much larger, younger population, real economic growth...So for that matter some US companies could leave the US...

The US may have to accept doing trade with other countries with payment NOT in US$....

The US is the motor behind attacks on Chinese high-tech Tik-tok, Huawei...In reaction US internet companies (from Google to Amazon) may see doors closed in much of the world...making their US shares on the stock market "less interesting"...Nationalizing US oil/gas could make non US energy companies become the dominant players even more/faster...

A.o. during the US coup in Türkiye there were "fears" Turkish forces would take over US bases in Türkiye...US bases in Syria, Iraq are illegal...Qatar may be interested in others (China, Russia, Iran, India) taking over the US bases there...

An all out non-military coordinated (semi)global action against the US may "wake up" the US population...(most of them do know the US has a problem...). So the BRICS goal could be regime change in D.C. without a global war...

We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
Back to Top
Dutch Josh View Drop Down
Adviser Group
Adviser Group


Joined: May 01 2013
Location: Arnhem-Netherla
Status: Offline
Points: 94027
Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: April 02 2023 at 10:51pm

[url]https://www.zerohedge.com/commodities/saudi-arabia-makes-voluntary-cut-500000-barrels-day-may[/url] or https://www.zerohedge.com/commodities/saudi-arabia-makes-voluntary-cut-500000-barrels-day-may ;

Previously, Russia had pledged to cut its crude-only output by 500,000 barrels per day in March in response to Western sanctions, including price caps on its oil and petroleum production, and to keep those curbs in place through June, but has now extended its pledged cuts through the end of the year

Here are the reductions per country: 

  • *SAUDI ARABIA TO CUT OIL OUTPUT BY 500,000 BARRELS/DAY FROM MAY

  • *KUWAIT TO VOLUNTARY CUT OIL PRODUCTION BY 128,000 BARRELS/DAY

  • *UAE TO REDUCE OIL PRODUCTION BY 144,000 BARRELS/DAY FROM MAY

  • *KAZAKHSTAN TO CONTRIBUTE 78K B/D TO OPEC+ OUTPUT CUT: MINISTRY

  • *IRAQ TO CUT 211,000 B/D OF OIL OUTPUT FROM MAY: MINISTRY

  • *ALGERIA TO CUT 48K B/D OF OIL OUTPUT FROM MAY TO END 2023: APS

  • *OMAN TO CONTRIBUTE 40K B/D TO OPEC+ PRODUCTION CUT: DELEGATE

Russia commented on the announcement of production cuts:

"Today the global oil market is going through a period of high volatility and unpredictability due to the ongoing banking crisis in the US and Europe, global economic uncertainty, and unpredictable and short-sighted energy policy decisions.

Saudis said: 

"Ministry of Energy official emphasized that this is a precautionary measure aimed at supporting the stability of the oil market," SPA reports

Brent futures are expected to rise this evening in response to today's news. Prices have been range bound between $86-$73 a barrel for much of 2023. 

and [url]https://www.zerohedge.com/energy/renewables-surpass-coal-us-electricity-generation[/url] or https://www.zerohedge.com/energy/renewables-surpass-coal-us-electricity-generation 

For the first time, more electricity was generated from renewable sources in the U.S. over the course of one year than from coal.

As Statista's Katharina Buchholz details below, in 2022, renewable energy sources created more than 900 terawatt-hours of electric power in the country compared to a little over 800 that came from coal.

On a global scale, a similar change is coming - renewables are projected to outweigh coal electricity generation by 2027.

DJ, If the US$ is linked to fossil fuels and the use of those sources of energy are planned to be reduced it will affect the US$ anyway...If the US was able to keep relations around the globe friendly still the US$ could play a major role...US foreign policy has been a major disaster for decades...

DJ-Maybe being Dutch-"largest of small EU members" NL is more aware of "foreign interests"...The "basics" for trade is understanding other cultures...not enforcing your (lack of) culture upon them...

[url]https://halturnerradioshow.com/index.php/en/news-page/world/white-house-admits-countries-worldwide-refusing-u-s-dollar[/url] or https://halturnerradioshow.com/index.php/en/news-page/world/white-house-admits-countries-worldwide-refusing-u-s-dollar ;

White House spokeswoman Karin Jean-Pierre was asked what the Biden regime was doing about countries switching away from US Dollars and using their own currency as settlement of foreign trade.  Her response was stunning . . . .

"Switching to national currencies is a violation of the rights of American citizens."

The White House then threatened with sanctions those countries that refuse the dollar in mutual settlements.

DJ...Do US elite understand what they are doing ? [url]https://southfront.org/how-billionaires-fund-scholars-who-pump-u-s-imperialism/[/url] or https://southfront.org/how-billionaires-fund-scholars-who-pump-u-s-imperialism/ ...

We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
Back to Top
Dutch Josh View Drop Down
Adviser Group
Adviser Group


Joined: May 01 2013
Location: Arnhem-Netherla
Status: Offline
Points: 94027
Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: April 04 2023 at 11:27pm

[url]https://www.zerohedge.com/geopolitical/here-are-7-signs-global-de-dollarization-has-just-shifted-overdrive[/url] or https://www.zerohedge.com/geopolitical/here-are-7-signs-global-de-dollarization-has-just-shifted-overdrive ;

#1 The BRICS nations account for over 40 percent of the total global population and close to one-fourth of global GDP.  So the fact that they are working to develop a “new currency” should greatly concern all of us…

#2 Two of the BRICS nations, China and Brazil, have just “reached a deal to trade in their own currencies”

#3 During a meeting last week in Indonesia, finance ministers from the ASEAN nations discussed ways “to reduce dependence on the US Dollar, Euro, Yen, and British Pound”

#4 In a move that has enormous implications for the “petrodollar”, Saudi Arabia just agreed to become a “dialogue partner in the Shanghai Cooperation Organization”

#5 The Chinese just completed their very first trade of liquefied natural gas that was settled in Chinese currency instead of U.S. dollars…

#6 The government of India is offering their currency as an “alternative” to the U.S. dollar in international trade…

#7 Saudi Arabia has actually agreed to accept Kenyan shillings as payment for oil shipments to Kenya instead of U.S. dollars…

DJ See also [url]https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)#Table[/url] or https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)#Table for a more realistic view on what a GDP can buy...BRICS is a global dominant economic player...

10 years ago, none of these things would have happened.

But now change is happening at a pace that is absolutely breathtaking.

At this point, John Carney is warning that a fracturing of global currency reserves is “inevitable”…

“[It’s] not only a serious threat, I think it is inevitable. We went through three stages, as you said, after World War II. The U.S. was the biggest economy in the world. In the 1970s, global banking became basically dollar central. With the fall of the Soviet Union, the entire world, more or less, came under the domination of the U.S dollar…”

“That is now drifting away. China and Russia are starting to build an alternative block of currency,” John Carney explained Sunday.

Sadly, I agree with him.

As U.S. relations with both Russia and China continue to go downhill, both of those nations will have a very strong incentive to push de-dollarization even further.

And that is really bad news for the United States, because our currency is the source of our economic power and it is the most important thing that we export.

This is a story of monumental importance, but unfortunately most Americans still believe that our leaders know exactly what they are doing and that they have everything fully under control.

DJ, Not only western "leaders" seem to be blind, also western "media" most ignore these essential changes...

Soon lots of western companies may be owned by non-western owners...Privatizing means governments do not know who owns air/sea-ports, airlines, railway companies etc. Even roads in the west-when private funded-could turn out to be Chinese....but it is simply ignored...

Saudi Arabia had over 10% of Credit Suisse-bank shares...how much of western banks is already in non-western hands ?

We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
Back to Top
Dutch Josh View Drop Down
Adviser Group
Adviser Group


Joined: May 01 2013
Location: Arnhem-Netherla
Status: Offline
Points: 94027
Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: April 29 2023 at 5:47am

[url]https://www.zerohedge.com/geopolitical/escobar-de-dollarization-kicks-high-gear[/url] or https://www.zerohedge.com/geopolitical/escobar-de-dollarization-kicks-high-gear ;

Authored by Pepe Escobar via The Cradle,

The US dollar is essential to US global power projection. But in 2022, the dollar share of reserve currencies slid 10 times faster than the average in the past two decades...

-

The numbers: the dollar share of global reserves was;

- 73 percent in 2001, 

-55 percent in 2021, and 

-47 percent in 2022

(-30% end of 2024 ???)

The key takeaway is that last year, the dollar share slid 10 times faster than the average in the past two decades.

Now it is no longer far-fetched to project a global dollar share of only 30 percent by the end of 2024, coinciding with the next US presidential election.

The defining moment – the actual trigger leading to the Fall of the Hegemon – was in February 2022, when over $300 billion in Russian foreign reserves were “frozen” by the collective west, and every other country on the planet began fearing for their own dollar stores abroad. There was some comic relief in this absurd move, though: the EU “can’t find” most of it.

DJ, It was a wrong choice to use the US$, US banking system as a weapon against Russia-Iran-China....

At least 19 nations have already requested to join BRICS+, the extended version of the 21st century’s major multipolar institution, whose founding members are Brazil, Russia, India, and China, then South Africa. The foreign ministers of the original five will start discussing the modalities of accession for new members in an upcoming June summit in Capetown.

BRICS, as it stands, is already more relevant to the global economy than the G7. The latest IMF figures reveal that the existing five BRICS nations will contribute 32.1 percent to global growth, compared to the G7’s 29.9 percent.

With Iran, Saudi Arabia, UAE, Turkey, Indonesia, and Mexico as possible new members, it is clear that key Global South players are starting to focus on the quintessential multilateral institution capable of smashing Western hegemony.

Russian President Vladimir Putin and Saudi Crown Prince Mohammad bin Salman (MbS) are working in total sync as Moscow’s partnership with Riyadh in OPEC+ metastasizes into BRICS+, in parallel to the deepening Russia-Iran strategic partnership.

MbS has willfully steered Saudi Arabia toward Eurasia’s new power trio Russia-Iran-China (RIC), away from the US. The new game in West Asia is the incoming BRIICSS – featuring, remarkably, both Iran and Saudi Arabia, whose historic reconciliation was brokered by yet another BRICS heavyweight, China.

Importantly, the evolving Iran-Saudi rapprochement also implies a much closer relationship between the Gulf Cooperation Council (GCC) as a whole and the Russia-China strategic partnership.

This will translate into complementary roles – in terms of trade connectivity and payment systems – for the International North-South Transportation Corridor (INSTC), linking Russia-Iran-India, and the China-Central-Asia-West Asia Economic Corridor, a key plank of Beijing’s ambitious, multi-trillion-dollar Belt and Road Initiative (BRI).

DJ, the process above is resulting in less demand for the US$ in global trade-not YET-as a weapon against the US...

EU-China relations are very mixed...lots of EU companies have factories in China (Volkswagen, BASF) or are even owned by Chinese companies (Volvo). So one could question if BRIICSS has any interest in "limiting" the Euro. They may be more interested in pulling Europe away from the US...and may succeed in that goal since also the EU may go for European-rather than US-interests...

We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
Back to Top
Dutch Josh View Drop Down
Adviser Group
Adviser Group


Joined: May 01 2013
Location: Arnhem-Netherla
Status: Offline
Points: 94027
Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: May 02 2023 at 12:09am

DJ, Interesting article [url]https://www.zerohedge.com/geopolitical/americas-empire-bankrupt[/url] or https://www.zerohedge.com/geopolitical/americas-empire-bankrupt 

placing the US loss of $-dominance in a historic perspective. 

Some remarks...

A timeline may place Spain(+Portugal for some time) being dominant...the Dutch managed to break that-mainly because the British were fighting eachother...when the UK did get their act together a "mix of wars and cooperation". 

William & Mary see [url]https://en.wikipedia.org/wiki/William_III_of_England[/url] or https://en.wikipedia.org/wiki/William_III_of_England ;

William III (William Henry; DutchWillem Hendrik; 4 November 1650 – 8 March 1702),[b] also widely known as William of Orange, was the sovereign Prince of Orange from birth, Stadtholder of HollandZeelandUtrechtGuelders, and Overijssel in the Dutch Republic from the 1670s, and King of EnglandIreland, and Scotland from 1689 until his death in 1702. As King of Scotland, he is known as William II.[1] He is sometimes informally known as "King Billy" in Ireland and Scotland.[2] His victory at the Battle of the Boyne in 1690 is commemorated by Unionists, who display orange colours in his honour. He ruled Britain alongside his wife and cousin, Queen Mary II, and popular histories usually refer to their reign as that of "William and Mary".

DJ..."Anglo-Dutch" companies evolved because conflicts were ended in cooperation...The transfer of power from the UK to the US was NOT the result of a US-UK war but costly wars the UK did fight with Germany...

So...transfer of US$ dominance to "a new currency" dominance is seeing wars again...

What the ZH article (link above) is missing is that "unfriendly" transfer of currency dominance may bring even more drastic changes....

The transfer of financial dominance is from the US to -in fact BRICS/BRIICSS+/SCO ...even going further the "Asia"...

We are at the end of about 500 years of "western" (European/US) dominance of the world...(From Spain/Portugal-to NL-to UK-to US all is western dominance...). It is a "far bigger change"....

-----------

De-dollar-ization also now is the main tool used by BRIICSS+/SCO (Brazil-Russia-India/Iran-China-SouthAfrica/Saudi Arabia + new other members, Shanghai Cooperation Organization) to "limit" the west...

Next to the US$ the €/Euro also is a major global factor. So far the EU-most EU members use the Euro-is a US partner...But European interests are not-always-the same as US interests...

BRIICSS+/SCO may see "some" role for the "Petro-Yuan"...the point of BRIICSS+/SCO however is MULTI-polarity...so NOT one dominant global currency any longer...

For us-in Europe-Asia is "next door"...We still buy lots of Russian energy-now "because of sanctions" via India....in the form of refined products...We-EU-NEED trade with China...

So...eventough the EU and US may have lots of similarities...there are also very major differences...geo-location is one of them...The EU "strong because of its division" is another point...("We" -the EU- can impossibly seen as an enemy by ourselves...If you do not like the Dutch you still can make deals with the French, Spanish, Italians etc...) 

Another point-again-replacing the US$ as global "reserve" currency is a very major job...BRIICSS+/SCO may welcome the €/Euro in a mix of currencies they can use to "limit" the US. 

Because-the main point in my view-is de-dollar-ization may be the strategy to unable the US to fight more wars...

-Defund US military spending...

-Deny US access to raw materials

-Even limit the US energy supplies

My view...de-dollar-ization is using the US$ as a weapon to destroy the US....after the US tried to use the $ as a weapon against others...

It will NOT go slow to be effective...The BRIICSS+/SCO goal may be "very agressive"....push the US into hyperinflation high speed...this and next year...So US presidential elections may give the US time to "rethink" its stand...

------------

Pandemic-links of course has to do with governments one way or another playing a major role in public healthcare...De-dollar-ization could costs very many lives when healthcare simply goes bankrupt....It is NOT friendly...

Will de-dollar-ization cause famines ? It will worsen the food-crises...no doubt...

De-dollar-ization will result in lots of economic chaos...global changes...SHORT term...NOT a long term proces like switching from UK to US dominance was...(1914-1970 as a time-frame for UK-US transfer ?) 

Global trade in 2020 was done around 70% in US$ ...(PPP may give a somewhat different picture)...in 2025 US$ may be under 5% of global trade....the US facing inflation over 100% year-on-year....it is brutal...


We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
Back to Top
Dutch Josh View Drop Down
Adviser Group
Adviser Group


Joined: May 01 2013
Location: Arnhem-Netherla
Status: Offline
Points: 94027
Post Options Post Options   Thanks (0) Thanks(0)   Quote Dutch Josh Quote  Post ReplyReply Direct Link To This Post Posted: July 08 2023 at 6:29am

[url]https://www.zerohedge.com/geopolitical/escobar-golden-ruble-30-sco-welcomes-new-global-globe[/url] or https://www.zerohedge.com/geopolitical/escobar-golden-ruble-30-sco-welcomes-new-global-globe ;

The long and winding de-dollarization road

All this frantic activity correlates with the key dossier to be treated by BRICS+: De-dollarization.

India’s External Affairs Minister Jaishankar has confirmed there will be no new BRICS currency – for now. The emphasis is on increasing trade in national currencies.

When it comes to BRICS heavyweight Russia, the emphasis for now is to drive commodity prices higher for the benefit of the Russian ruble.

Diplomatic sources confirm that the unspoken agreement among BRICS sherpas – who this week are preparing the guidelines for BRICS+ to be discussed at the South Africa summit next month – is to hasten the fiat dollar’s meltdown: The Financing of US trade and budget deficits would become impossible at current interest rates.

The question is how to hasten it imperceptibly.

Putin’s trademark strategy is to always let the collective west embark in all sorts of strategic mistakes without direct Russian intervention. So what happens next in the battlefield in Donbass – NATO’s larger than life humiliation - will be a crucial factor in the de-dollarization front. The Chinese, for their part, worry about a collapsed dollar rebound on China’s manufacturing base.

The road map ahead suggests a new trade settlement currency first designed at the EAEU, supervised by the Eurasia Economic Commission’s head of macroeconomics Sergey Glazyev. That would lead to a wider BRICS and SCO deployment. But first the EAEU needs to get China on board. That was one of the key issues recently discussed by Glazyev, in person, in Beijing.

So the Holy Grail is a new supranational trade currency for BRICS, SCO, and EAEU. And it’s essential that its reserve status does not allow overriding power to one nation, as it happens with the US dollar.

The only practical means of tying the new trade currency to a basket of multiple commodities – not to mention a basket of national interests - would be through gold.

Imagine all that being discussed in depth by that interminable queue for BRICS membership. As it stands, at least 31 nations have entered formal applications or expressed interest in joining an upgraded BRICS+.

The interconnections are fascinating. Apart from Iran and Pakistan, the only full SCO members that are not BRICS members are four Central Asian “stans,” which already happen to be EAEU members. Iran is bound to become a member of BRICS+. No less than nine nations among SCO’s observers or dialogue partners are among BRICS applicants.

Lukashenko called it: The merging of BRICS and SCO seems virtually inevitable.

For the top twin drivers of both organizations – the Russia-China strategic partnership – this merger will represent the ultimate multilateral institution, based on real free and fair trade, capable of dwarfing both the US and the EU and extending well beyond Eurasia to the “Global Globe.”

German industry/business circles already seem to have seen the writing on the wall, as well as some of their French counterparts, which notably include France's President Emmanuel Macron. The trend is towards an EU schism – and even more Eurasian power.

A BRICS-SCO trade bloc will make western sanctions absolutely meaningless. It will affirm total independence from the US dollar, offer an array of financial alternatives to SWIFT, and encourage close military and intel cooperation against serial black ops by the Five Eyes, part of the ongoing Hybrid Wars.

In terms of peaceful development, West Asia has shown the way. The minute Saudi Arabia sided with China and Russia – and is now a candidate to both BRICS and SCO membership – there was a new game in town.

Golden Ruble 3.0?

As it stands, there’s huge potential for a gold-backed ruble. If and when it hits the road, that will be a revival of the gold-backing in the USSR between 1944 and 1961.

Glazyev has crucially observed that Russia’s trade surplus with SCO members has allowed Russian companies to pay off external debts and replace them with borrowing in rubles.

In parallel, Russia is increasingly using the yuan for international settlements. Further on down the road, key “Global Globe” players – China, Iran, Turkey, UAE – will be interested in payment in non-sanctioned gold instead of local currencies. That will pave the way for a BRICS-SCO trade settlement currency tied to gold.

After all, nothing beats gold when it comes to fighting collective western sanctions, pricing oil, gas, food, fertilizers, metals, minerals. Glazyev already laid down the law: Russia’s got to go for Golden Ruble 3.0.

The time is fast approaching for Russia to create the perfect storm to deliver a massive blow to the US dollar. This is what’s being discussed behind the scenes at the SCO, EAEU, and some BRICS sessions, and this is what’s driving the Atlanticist elites livid.

The “imperceptible” way for Russia to make it happen is to let markets drive up the prices of nearly all Russian commodity exports. Neutrals all across the “Global Globe” will interpret it as a natural “market response” to the collective west’s cognitive dissonant geopolitical imperatives. Soaring energy and commodity prices will end up provoking a steep decline in the purchasing power of the US dollar.

So it’s no wonder that several leaders at the SCO summit were in favor to what amounts, in practice, to an expanded BRICS-SCO Central Bank. When the new BRICS-SCO-EAEU currency is finally adopted – of course it’s a long way away, perhaps in the early 2030s – it will be traded for physical gold by participating banks from SCO, BRICS, and EAU member-nations.

All of the above should be interpreted as the sketch of a possible, realistic path to real multipolarity. It has nothing to do with the yuan as reserve currency, reproducing the existing rent-extracting racket to the profit of a minuscule plutocracy – complete with a massive military apparatus specialized in bullying the “Global Globe.”

A BRICS-SCO-EAEU union will be focused on building – and expanding - the physical, non-speculative economy based on infrastructure development, industrial capability, and tech sharing. Another world-system, now more than ever, is possible.

DJ, See also [url]https://halturnerradioshow.com/index.php/en/news-page/world/breaking-news-russia-confirms-brics-to-launch-gold-backed-currency[/url] or https://halturnerradioshow.com/index.php/en/news-page/world/breaking-news-russia-confirms-brics-to-launch-gold-backed-currency 

De-dollar-ization as a BRICS+ goal to disarm the US$...With [url]https://www.moonofalabama.org/2023/07/punishing-sanctions.html[/url] or https://www.moonofalabama.org/2023/07/punishing-sanctions.html

China on Monday ordered export restrictions on two technology-critical elements in retaliation for new Western sanctions on its semiconductor industry.

The restrictions, which take effect on August 1, will apply to gallium and germanium metals and several of their compounds, which are key materials for making semiconductors and other electronics.

The Ministry of Commerce said in a statement that the export controls on gallium- and germanium-related items were necessary “to safeguard national security and interests”.

Exporters in China will need to apply for permission from the ministry, with information about the end users and how the materials will be used.

DJ...So Russia/OPEC+ may increase the price of oil and gas to "unfriendly nations"...while China -in reaction to US-led sanctions-will limit export of basic raw materials for "renewable energy"...At the same time BRICS+ may soon end up as an organization with over 40 members...BRICS itself now almost has 50% of the global population...

[url]https://www.youtube.com/watch?v=qrsDpZT7P_o[/url] or https://www.youtube.com/watch?v=qrsDpZT7P_o The Duran, if you want to do international trade it will NOT be done in US$...

We cannot solve our problems with the same thinking we used when we created them.
~Albert Einstein
Back to Top
 Post Reply Post Reply
  Share Topic   

Forum Jump Forum Permissions View Drop Down