[BrianC]

Suddenly Everyone Is Hunting for Alternatives To the US Dollar (bloomberg.com) 81
Posted by msmash on Friday December 30, 2022 @10:00AM from the growing-concern dept.
King Dollar is facing a revolt. Tired of a too-strong and newly weaponized greenback, some of the world's biggest economies are exploring ways to circumvent the US currency. From a report:
Smaller nations, including at least a dozen in Asia, are also experimenting with de-dollarization. And corporates around the world are selling an unprecedented portion of their debt in local currencies, wary of further dollar strength. No one is saying the greenback will be dethroned anytime soon from its reign as the principal medium of exchange. Calls for "peak dollar" have many times proven premature. But not too long ago it was almost unthinkable for countries to explore payment mechanisms that bypassed the US currency or the SWIFT network that underpins the global financial system.

Now, the sheer strength of the dollar, its use under President Joe Biden to enforce sanctions on Russia this year and new technological innovations are together encouraging nations to start chipping away at its hegemony. "This will simply intensify the efforts in Russia and China to try to manage their part of the world economy without the dollar," said Paul Tucker, a former deputy governor of the Bank of England in a Bloomberg podcast. Writing in a newsletter last week, John Mauldin, an investment strategist and president of Millennium Wave Advisors with more than three decades of markets experience said the Biden administration made an error in weaponizing the US dollar and the global payment system. "That will force non-US investors and nations to diversify their holdings outside of the traditional safe haven of the US," said Mauldin.
https://www.bloomberg.com/news/articles ... tion-drive

[BrianC]

free link
https://www.yahoo.com/now/suddenly-ever ... 00587.html

[Tanada]

I don't see this as sudden at all, different nations have been easing off on their commitments for a decade or longer by this point in time.

[Outcast_Searcher]

I don't see this as sudden at all, different nations have been easing off on their commitments for a decade or longer by this point in time.

For the literally 50 years I've been paying attention, many people and economic entities have been:

a). Seeking alternatives to the dollar. (The details change but the overall fact remains).

b). WHINING about the direction of the dollar, whether up or down (which I found hilarious, even as a teen).

[ROCKMAN]

Outcast: Yes, more palatable to blame the US then their own economies/gov. LOL

[careinke]

The problem with countries who do try and find an alternative to the U.S. Petrol dollar is:

1. The U.S. will destroy your country through war.
2. Kill the leader of the country.

Not necessarily in that order.

Some examples:

Lebanon, Syria, Iraq, Afghanistan, Yemen, Iran, and Libya.

Peace

[Peak_Yeast]

Sorry for being blind...

[theluckycountry]

The problem with countries who do try and find an alternative to the U.S. Petrol dollar is:

1. The U.S. will destroy your country through war.
2. Kill the leader of the country.

Yes, that has been the history of the last 80 years. But now the US empire is on it's last legs and the BRICS collectively are stronger militarily, natural resource wise, and through China control the bulk of the modern industrial base.

In the "West" people are stressed about "the" Ukraine, about oil and gas shortages, but the BRICS are singing, knowing their time has come. Kicking Russia out of SWIFT was the biggest mistake the West made, it's forced the opposition's hand. The only thing the West controls now is money creation and they have made a complete mess of that. Once Iran and Saudi Arabia join the BRICKS it will be game over I believe. That's why the war, there are always big wars as an empire fails and the power shifts to the new empire.

Look at the desperation over the Ukraine, it smacks of the WWI efforts of Britain to maintain control of its empire. It wasn't the death of an arch duke that started that one, it was Germany's construction of the Berlin-Baghdad railway that threatened the UK dominance on oil shipments across the high seas.

https://www.globalsecurity.org/military ... hdad-3.htm

[theluckycountry]

The alternative to the US dollar is a gold backed currency, it's why Russia and China have been buying up every ounce on the planet for nearly 20 years. It was the US gold backed currency that brought stability after WWII, and it worked fine up until 1970 when the reneged on the agreement. That caused the massive inflation of the 70's and the US has been losing ground ever since.

[AdamB]

The alternative to the US dollar is a gold backed currency, it's why Russia and China have been buying up every ounce on the planet for nearly 20 years. It was the US gold backed currency that brought stability after WWII, and it worked fine up until 1970 when the reneged on the agreement. That caused the massive inflation of the 70's and the US has been losing ground ever since.

Indeed. We lost ground right into the position of remaining global superpower, and have been there ever since. If ever there was a nice place to lose ground to, that would certainly be it.

The new century will be an interesting matchup between us and the Chinese I imagine. Thank goodness New Zealand is still a free country with a beautiful country and a hardy and intelligient people, and built a modern economy not based on kowtowing to the Chinese. Other nearby islands obviously haven't fared so well, probably learning to speak Mandarin while lamenting their generic heritage that landed them in the spot they are in.

[AdamB]

As the world moves away from the U.S. dollar as a world reserve asset, dollars will be dumped globally, causing a “tsunami of inflation” in the United States as the currency returns to American shores. Interest rates will rise accordingly, followed by a “collapse” in asset prices, which would be used to usher in Central Bank Digital Currencies (CBDCs) and The Great Reset.

As the world moves away from the U.S. dollar as a world reserve asset, dollars will be dumped globally,