BRICS and the death of the Dollar

[Indofred]

I've put this in clean debate because I'm after an informed, clean debate on the possible outcome of BRICS, not pointless mud slinging, insults and general rubbish.

The rise of the BRICS

BRICS, mainly China's influence, would be a disaster for Europe, but only if they fight against it. Adopting it would help them out no end.
Why would you want to covert to Dollars when you can just use your own cash?
The same goes for the rest of the world.

Ever since Bretton Woods, the U.S. dollar has enjoyed unparalleled power, even after Nixon finally destroyed the 1944 agreement, the petrodollar, starting with Saudi, kept American power.
Now, as we see more and more nations being alienated by he states, Iran because it will have a nuke next year (As always has been almost ready to have for over 20 years), Syria (Evil, nasty dictator), Venezuela (Nasty communists), North Korea (More evil commies) and of course China and Russia.
Both the latter being aggressive, war mongering nations that have hardly ever invaded anyone, something some governments have a far worse record on.
Oddly, the ones that complain about the evil, power mad Chinese and Russians.

However, they all have something in common - they've all at least partially abandoned the US dollar in oil sales, and other goods.
I wonder how much this 'axis of evil', is actually evil and how many of the stories are lies. I noticed Kim's ex girlfriend was executed in front of her family last year, going on to make a miraculous TV appearance on live TV about two weeks ago.
A new messiah is among us - Handel will have to write a new piece of music.
Handel commonly wore a wig; perhaps Kim should consider one - it would be a great help to his PR people.

Saudi has, so I'm informed, already sold oil to China, using the Chinese currency, something the U.S. government will be extremely displeased with.
China, the terrible, nasty, imperialist power, has built the Yanbu refinary, now taking far more Saudi oil than the U.S. does - it no longer makes any sense to price those deals in Dollars.

Anyway, to the point - American influence is dwindling away and the loss of the petrodollar will do nothing to help the tumbling dollar.
The western press is almost totally ignoring the danger of BRICS to the dollar and China's massive influence in oil producing countries, preferring to concentrate on land disputes and how America is in great danger because two countries, thousands of miles from the US coast, are battling it out over tiny bits of nothing.
If Saudi gives up the petrodollar, the rest of OPEC will follow and your massive national debt will cripple you.
I wonder what would happen in that case.

Discuss.

 

[Indofred]

This is really odd.
The biggest threat to America, and Israel when America runs out of cash, and no one seems to notice.

 

[Toro]

Because it's not a threat. It's a fantasy of anti-Americans.

BRIC central bank reserve managers buy American Treasury bills, not the bonds of each others' countries, because they don't have a history of rule of law, and they have a history of inflation and confiscation that can wipe out the value of the bonds.

 

[Indofred]

Because it's not a threat. It's a fantasy of anti-Americans.

BRIC central bank reserve managers buy American Treasury bills, not the bonds of each others' countries, because they don't have a history of rule of law, and they have a history of inflation and confiscation that can wipe out the value of the bonds.

Perhaps you could link to that.
Thanks in advance.

 

[Toro]

Link? Sorry, not everything is on the Internet.

Feel free to link the composition of reserve portfolios, BRIC bonds and all.

 

[R.C. Christian]

Eurasia is the key of U.S. foreign policy. It's sad that you people can't see this. Without the control of the land mass between Russian and China then the U.S. cannot maintain a unipolar world. Israel is just but a small piece of the larger picture. This is doctrine.

 

[Indofred]

I didn't realise, but Indonesia has a law, UU 07/2011, banning all internal transactions in any other currency than the Rupiah.
You'd think this would have little effect on the dollar, but it does.
All port and airport fuel transactions are done in Dollars, now illegally, and the government is cracking down.
They believe, using the dollar adds about 7% to each transaction, and we're talking billions in trade.

Every little nail adds pressure on the dollar, as we've already seen with Saudi using other currencies.

We've seen a four fold increase in BRICS transactions over the last ten years, and no sign of a slowdown.
At this point, over 20% of international trade has been taken away from the dollar, in favour of BRICS.

BRICs Share Of World Economy Up Four Times In 10 Years - Forbes

http://cuts-international.org/BRICS-TERN/pdf/BRICS_and_the_World_Order-A_Beginners_Guide.pdf

Japan, your great ally, has fucked you.

China, Japan Bypass U.S. Dollar in Pivotal Trade Agreement | Julian Phillips | FINANCIAL SENSE

The cutting out of the dollar in Japan / China trade may be a small start of only $345 billion in global trade, but it is a sea change decision in the global monetary system that markes the beginning of the end of the dollar's role as the sole global reserve currency. This move is irreversible and will lead to more and more currency exchange rate uncertainties. Gold will benefit!

Japan and China will promote direct trading of yen and yuan without using dollars and will encourage the development of a market for companies involved in the exchanges, the Japanese government said over the holiday weekend.

This is a major story, but almost totally ignored by the US press, or at least the popular news outlets, and politicians pretend it isn't there.

 

[Indofred]

Be afraid, America, be very afraid.

BBC News - Brics nations to create $100bn development bank

Brics nations to create $100bn development bank

The leaders of the five Brics countries have signed a deal to create a new $100bn (£58.3bn) development bank and emergency reserve fund.

The Brics group is made up of Brazil, Russia, India, China and South Africa.

The capital for the bank will be split equally among the five participating countries.

The bank will have a headquarters in Shanghai, China and the first president for the bank will come from India.

Aiming at developing countries, BRICS is trying to remove America's dollar from the picture, and doing rather well at it so far.
America fucks a country off, China steps in and assists, gaining massive influence and trade partners, but removing the US dollar from the deal.

This is a crushing blow on the way, but most Americans have no clue they're going to be hit.

 

[dilloduck]

No worries. Obama and Biden are on top of it.

 

[sameech]

This is a crushing blow on the way, but most Americans have no clue they're going to be hit.

Most Americans won't be affected directly even if the world stopped using the dollar. The US occupies to much global GDP for this scheme not to hurt them more than it hurts the US. America will survive without being able to afford cheap plastic crap from China that got expensive.

 

[jwoodie]

Maybe this should be in the Economy subforum?

 

[Indofred]

This is a crushing blow on the way, but most Americans have no clue they're going to be hit.

Most Americans won't be affected directly even if the world stopped using the dollar. The US occupies to much global GDP for this scheme not to hurt them more than it hurts the US. America will survive without being able to afford cheap plastic crap from China that got expensive.

America has a massive debt problem, far more than it would be able to pay back if the dollar wasn't the standard currency for world trade.
If BRICS gets much stronger, the US of A and Americans are in serious trouble, right down to the McD staff.

 

[Manonthestreet]

China has a massive debt problem too, they are buying gold though and no one knows how much they have. We know we have none.

 

[sameech]

This is a crushing blow on the way, but most Americans have no clue they're going to be hit.

Most Americans won't be affected directly even if the world stopped using the dollar. The US occupies to much global GDP for this scheme not to hurt them more than it hurts the US. America will survive without being able to afford cheap plastic crap from China that got expensive.

America has a massive debt problem, far more than it would be able to pay back if the dollar wasn't the standard currency for world trade.
If BRICS gets much stronger, the US of A and Americans are in serious trouble, right down to the McD staff.

I don't disagree with the first part of your post, but our debt problem is China's debt problem too. They really do not want us printing trillion dollar bills and throwing them in the ocean in old wine bottles as payment. BRICS can be as strong as it wants to be. Doesn't change that the world needs America to consume and Americans can survive by consuming significantly less. If it becomes a race to the bottom, I will bet on the USA to be the last man standing.