Brazil and Argentina are creating a currency union (exact same thing gaddafi got murdered for in 2011)
Saudi Arabia announced oil sales in local currency (an important U.S ally)
India settling trade in renminbi, rupees and UAE dirhams
Can’t imagine hearing this shit a year ago. The #1 reason why demand for the dollar is strong is because every country needs it to buy things, and now that old system is changing. If America wants to save the empire, it needs to be proactive.
The trends towards multipolarity and dedollarization were already present, and the war with Russia drastically accelerated these processes. I’m convinced that this war will be taught in history classes as the turning point when US hegemony started to unravel.
I’d say the really big change since 2022 was that account surpluses of Russia, China and Saudi Arabia have now reached record levels, but these surpluses are no longer being transferred to traditional reserve dollar assets. Instead of the dollar, these countries invest primarily in gold, raw materials assets, and also make geopolitical investments. The remaining surpluses are stored on bank deposits in a liquid form to guarantee the possibility of their use.
Moreover, dedollarization is now accelerated by three fundamental trends:
Settlements in national currencies greatly reduce the role of the dollar as a world equivalent
Digital currencies of central banks will allow transactions to be carried out without using the infrastructure of the financial system of the West
Reserves denominated in US government debt are declining
Finally, another key reason the dollar is a global reserve currency is that oil could only be bought using dollars up to now. Every modern country needs oil to function, and that means having to buy dollars in order to get oil.
This scheme made dollar a very stable currency since there was guaranteed demand for it. This scheme is now falling apart. Russia is already trading oil outside the dollar, and now Saudis are going to start doing that as well. These are two of the most important oil producers in the world facilitating oil trade outside the dollar. Meanwhile, China and India are two of the biggest consumers and both are now pushing towards settlements in national currencies. Both are already trading this way with Russia out of necessity.
Look at the several coups and coup attempts in South America, the ongoing pressure on Europe to send weapons to Ukraine and all the rest, and then tell me they aren’t proactive
You’re right, America has been nothing but ‘proactive’ since the 90’s. I meant proactive financially. in the 70’s, americans threatened to assassinate Fahd Ibn Abdul Aziz and topple the saudi royal family if they didn’t sell oil in dollars. I have no doubt America’s foreign policy still has that character, but the question is if it will work again and how it will get involved militarily.
Can’t imagine hearing this shit a year ago. The #1 reason why demand for the dollar is strong is because every country needs it to buy things, and now that old system is changing. If America wants to save the empire, it needs to be proactive.
The trends towards multipolarity and dedollarization were already present, and the war with Russia drastically accelerated these processes. I’m convinced that this war will be taught in history classes as the turning point when US hegemony started to unravel.
2022 was definitely a big year. 2008 and 2014 as well imo
I’d say the really big change since 2022 was that account surpluses of Russia, China and Saudi Arabia have now reached record levels, but these surpluses are no longer being transferred to traditional reserve dollar assets. Instead of the dollar, these countries invest primarily in gold, raw materials assets, and also make geopolitical investments. The remaining surpluses are stored on bank deposits in a liquid form to guarantee the possibility of their use.
Moreover, dedollarization is now accelerated by three fundamental trends:
Finally, another key reason the dollar is a global reserve currency is that oil could only be bought using dollars up to now. Every modern country needs oil to function, and that means having to buy dollars in order to get oil.
This scheme made dollar a very stable currency since there was guaranteed demand for it. This scheme is now falling apart. Russia is already trading oil outside the dollar, and now Saudis are going to start doing that as well. These are two of the most important oil producers in the world facilitating oil trade outside the dollar. Meanwhile, China and India are two of the biggest consumers and both are now pushing towards settlements in national currencies. Both are already trading this way with Russia out of necessity.
Look at the several coups and coup attempts in South America, the ongoing pressure on Europe to send weapons to Ukraine and all the rest, and then tell me they aren’t proactive
You’re right, America has been nothing but ‘proactive’ since the 90’s. I meant proactive financially. in the 70’s, americans threatened to assassinate Fahd Ibn Abdul Aziz and topple the saudi royal family if they didn’t sell oil in dollars. I have no doubt America’s foreign policy still has that character, but the question is if it will work again and how it will get involved militarily.