Nice Going Biden: China, Brazil strike deal to ditch U.S. dollar for trade.

[Tom Paine 1949]

While this may hold true today, the world is in fact rapidly changing.
America has lost a great deal of the advantages it had in the past (such as Boeings former position in the aviation industry)

If Communist China's government can both rule with an iron fist and manage capitalism then America and the dollar is in trouble long haul.
As if that's not enough, reckless fiscal policy is burning the other end of the candle simultaneously.
I don't see where the new and improved diverse America has the integrity and stamina to keep up a meaningful fight.
No one wants to work. Everyone wants a get rich quick scheme or to be a star / influencer. It's unrealistic ....but then I present Modern America.

Nobody can prevent the world from changing …

Seriously, the unique position the U.S. had after WWII left the rest of the leading countries of the world in ruins is certainly past. That was always unsustainable. It is important to recognize that the dollar has held up much better than U.S. exporting industries have as a whole.

European competition (as in the case of Boeing) is certainly not a problem. They are allied democracies! Both international economic competition and economic trade and cooperation are natural, inevitable and healthy.

The Chinese are far behind in this particular industry (despite terrible self-serving Boeing management in recent years) and in other industries the West is finally taking Chinese economic competition more seriously. This is necessary so long as China remains a one-party, even a one-man, dictatorship which does not allow basic freedoms of speech, etc.

I certainly agree U.S. society and politics is a divided mess, and this threatens our position in the world as well as our very democratic freedoms. This is not the best place to go into all that, at least in my opinion.

 

[The Duke]

When they start converting Walmarts into FEMA detention centers, let us know more.

That POS couldn't tell it straight if his life depended on it. See the post above this one.

 

[The Duke]

Nobody can prevent the world from changing …

Seriously, the unique position the U.S. had after WWII is certainly past. That was always unsustainable. It is important to recognize that the dollar has held up much better than U.S. exporting industries have as a whole.

European competition (as in the case of Boeing) is certainly not a problem. They are allied democracies! Competition and international economic trade are natural and inevitable.

The Chinese are far behind in this particular industry (despite terrible self-serving Boeing management in recent years) and in other industries the West is finally taking Chinese economic competition more seriously. This is necessary so long as China remains a one-party, even a one-man, dictatorship which does not allow basic freedoms of speech, etc.

I certainly agree U.S. society and politics is a divided mess, and this threatens our position in the world as well as our very democratic freedoms. This is not the best place to go into all that, at least in my opinion.

So what is, my shill friend?

What is the best place to go into all that?

 

[the other mike]

It is important to recognize that the dollar has held up much better than U.S. exporting industries have as a whole.

Is that why we're $34 trillion in the red, a nice chunk of that owed to China, ......? With a military stretched thinner than the Suez Canal and a crumbling infrastructure. The good old dollar.

 

[Tom Paine 1949]

Is that why we're $34 trillion in the red, a nice chunk of that owed to China, ......? With a military stretched thinner than the Suez Canal and a crumbling infrastructure. The good old dollar.

Is there an economic point you are trying to make here? Should we just get rid of the dollar altogether, or stop its use in world trade, or encourage other countries to use their “good old” currencies more in world trade?

As for the military, do you favor more U.S. troops and more bases around the world? Shall we bring them all back home to fix our crumbling infrastructure?

 

[protectionist]

This is it OP.

All other news stories are a distraction from this one.

Biden intends to collapse the US dollar and usher in a digital dollar...in which they will control all our spending.

You thunked you were going to donate to a republican...HA! $5,000 digital dollar fine!

You thunked you were going to buy a gun? The police are on their way to pick you up.

Now with other countries trading energy for other currencies I'm thunking they wont make a deal on raising the debt limit and KABOOM! The US dollar becomes almost worthless ($5,000 can of tuna...$10,000 can of spam).

It could happen overnight.

Need to get rid of Biden > ASAP

 

[Dragonlady]

Which has nothing to do with the topic of this thread, Canuck Commie!

Try something on topic next tyme!

How's Justine Castreaux doing for your people, hmm?

After all, he is Castro's son.

Considering that he was two years old when his mother met Castro, that would be highly unlikely. Try using facts next time Asshat!

 

[protectionist]

Is that why we're $34 trillion in the red, a nice chunk of that owed to China, ......? With a military stretched thinner than the Suez Canal and a crumbling infrastructure. The good old dollar.

USA does not owe China ANYTHING, and will never owe them. If not for the US, and thousands of our militarys dying, China would be a colony of Japan for the past 77 years.

Hard to imagine any way China could ever pay us back for that.

 

[The Duke]

Considering that he was two years old when his mother met Castro, that would be highly unlikely. Try using facts next time Asshat!

That's a lie pushed by the Poyntner Institute. The facts are that Castro could very well be Castreaux's daddy.

Especially with having the same facial structure.

They (Trudeau and wife) went there before hunior was born, dumbass.

 

[Dragonlady]

That's a lie pushed by the Poyntner Institute. The facts are that Castro could very well be Castreaux's daddy.

Especially with having the same facial structure.

They (Trudeau and wife) went there before hunior was born, dumbass.

No, they did not. Pierre Trudeau first visited Cuba in 1976 and was the first western leader to meet with Castro. Justin was born 1971. Justin does look very much like his father. Same eyes, same nose:

 

[the other mike]

USA does not owe China ANYTHING, and will never owe them. If not for the US, and thousands of our militarys dying, China would be a colony of Japan for the past 77 years.

Hard to imagine any way China could ever pay us back for that.

The response to the outbreak killed more people than the virus.

 

[Resnic]

Wow. The BDS is thick here.

Anyways, good to see that most conservatives still don't understand economics. They actually think the economy of the entire world is supposed to run on dollars.

You have no idea what you're talking about. But since you seem to say you know all about economics I'd like you explain (using proper terminology and examples) how other countries not using the dollar is good for America.

I'll help you by explaining how it isn't good while you formulate your rebuttals on how it is good.

And no, the world does not run on the dxy, but for decades it has been the world's major reserve currency. One of the major bonuses for us in that aspect was when one of the many many countries that traded in dollars did so it had to go through American based banking systems which also put them under our jurisdiction which indirectly put them on our leash, it leveraged us some mild power and why even during economic crisis the actual value of the dollar held well.

So as other countries abandon the dxy and instead us other forms of currency like the yuan it weakens the dollar. And now it changes to where we have to convert to their currency shifting away moving it through our banking system to someone else's. The more people shift to another currency the more power they have and the more value is added to their currency while ours loses value. Our dollar losing value raises costs because if say 1 dollar is worth .91 cents then it's going to take more dollars to buy something.

Value of a currency is set by multiple factors but 2 of them are very big. How many countries trade in your currency and what your currency is backed by. Ours used to be back by gold and was a primary world trade currency. Now we back it with promises and we're starting to a shift away from it being a major trading currency internationally.

 

[Tom Paine 1949]

You have no idea what you're talking about. But since you seem to say you know all about economics I'd like you explain (using proper terminology and examples) how other countries not using the dollar is good for America.

I'll help you by explaining how it isn't good while you formulate your rebuttals on how it is good.

And no, the world does not run on the dxy, but for decades it has been the world's major reserve currency. One of the major bonuses for us in that aspect was when one of the many many countries that traded in dollars did so it had to go through American based banking systems which also put them under our jurisdiction which indirectly put them on our leash, it leveraged us some mild power and why even during economic crisis the actual value of the dollar held well.

So as other countries abandon the dxy and instead us other forms of currency like the yuan it weakens the dollar. And now it changes to where we have to convert to their currency shifting away moving it through our banking system to someone else's. The more people shift to another currency the more power they have and the more value is added to their currency while ours loses value. Our dollar losing value raises costs because if say 1 dollar is worth .91 cents then it's going to take more dollars to buy something.

Value of a currency is set by multiple factors but 2 of them are very big. How many countries trade in your currency and what your currency is backed by. Ours used to be back by gold and was a primary world trade currency. Now we back it with promises and we're starting to a shift away from it being a major trading currency internationally.

Here is a very simplified and milquetoast explanation of a few inherent problems with U.S. dollar “domination” of world trade, which I would argue is already (inevitably) unsustainable at a fully global level. The present disequilibriums and temptations created by this system is, I believe, partially responsible for some of the pressure for war and rising international economic chaos.

But this little article is not a national / political treatment of the problem, doesn’t delve deeply into history, and does not raise complex theoretical issues. Nevertheless, it may help you to see that matters are not so simple as you suppose:

Having reserve currency status has both benefits … and drawbacks (such as artificially low interest rates that can spur asset bubbles).

Issuers of Reserve Currencies

Reserve currencies are typically issued by developed, stable countries. The currency most commonly held as a foreign exchange reserve is the U.S. dollar, which, according to the International Monetary Fund (IMF), comprised nearly [note how low this figure was over a decade ago!] 62% of allocated reserves as of late 2012.

How Do Currencies Gain Reserve Status?

Countries don't fill out an application to have their currencies become reserve currencies, and there is no international organization that confers this status. To get a seat at the grownups' table, it helps to be a developed country with a big economy with relatively free capital flows, to have a banking system able to handle being a creditor, and to have export clout. These requirements make reserve currency status a rich world club, much to the chagrin of many developing countries. The currencies of China (the world's second largest economy), Brazil (sixth), Russia (ninth) and India (10th) - the BRIC countries - are not considered reserve, which is why these countries have been more vocal proponents of the creation of a reserve country unattached to any one country….

Critics of a dollar-dominated currency market have pointed out that it may be increasingly difficult for the U.S. to keep up with world dollar demand as its weight in the global economy shrinks….

Drawbacks of Reserve Currency Status

Reserve currency status isn't without its drawbacks, and the problems issuing countries face underscore why mature economies tend to be the ones issuing widely held currencies. Low borrowing costs stemming from issuing a reserve currency may prompt loose spending by both the public and private sectors, which may result in asset bubbles and ballooning government debt. Stimulus spending in the U.S., for example, led Chinese leaders to fear a weak dollar since that would erode the country's value of dollar-denominated debt.
One could also argue that part of the reason the U.S. was able to spend so freely is that excess Chinese savings had to be parked somewhere, and that somewhere was in the dollar. This occurrence is nothing new; Robert Triffin (of Triffin Dilemma fame) identified this shortcoming while the gold standard was still alive and kicking.

The Bottom Line

In such a global economy, where countries ship commodities and goods at such a frenetic pace, the fear of markets seizing up due to monetary constraints is not likely to diminish in the coming years. The recent financial crisis has increased the pressure on the dollar, especially in light of public debt prospects and political brinksmanship. Countries without reserve currency status fear that their fates are tied to macroeconomic and political decisions that are outside of their control. The push for a world market dominated less by the dollar is nothing new, but just as investors seek to hold a basket of investments rather than a solitary stock, so do central banks when it comes to managing their reserves.

A Primer On Reserve Currencies

 

[JohnDB]

Value of a currency is set by multiple factors but 2 of them are very big

GDP is one of the biggest factors as well as supply.

GDP is partially created by exports. If the Dollar is too strong vx other currencies we won't have any exports.

 

[Dekster]

Biden is showing he has no business savvy like Trump on the international stage. His whole goal is to weaken the US and its currency.

China, Brazil strike deal to ditch dollar for trade

It's Beijing’s latest salvo against the greenback. Read more at straitstimes.com.

www.straitstimes.com

Truth Social

Truth Social is America's "Big Tent" social media platform that encourages an open, free, and honest global conversation without discriminating on the basis of political ideology.

truthsocial.com

Considering how much the Fed & the GOP & the DNC are all 3 working to undermine the US dollar on three different fronts, I can't really blame other countries for wanting to move away from it.