• @Rye@lemmygrad.ml
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    1 year ago
    • 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.

    • ☆ Yσɠƚԋσʂ ☆OP
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      261 year ago

      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.

        • ☆ Yσɠƚԋσʂ ☆OP
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          41 year ago

          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.

    • @Shrike502@lemmygrad.ml
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      151 year ago

      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

      • @Rye@lemmygrad.ml
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        1 year ago

        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.

  • Black AOC
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    211 year ago

    Good. Death to Amerika, death to Amerikan comfort. I want to see these bastards writhe and squirm before it’s even thought about bringing them back into the fold of humanity.

  • @pgtl_10@lemmygrad.ml
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    131 year ago

    This comment in the link is heavy on copium:

    *Primere non nocere 2 DAYS AGO Aside from things already mentioned about US capital markets’ strengths, US dollar is the most desirable instrument not because rivals are too weak but

    • There is will among EM middle class to educate/migrate their kids to USA
    • USA has the most potential for innovation hence products with pricing power (really, what did China, Russia, India or Europe put something totally new in place for the last 78 years???)
    • US Navy/Army is unrivalled. Gulf countries know all to well that their very existence depends on US security guarantees

    This article all sounds like “Japan taking over the world” mania during late 1980s. It was a craze almost a hallucination. We know how it ended, Japanese living in tiny houses, banks allowing zombies to survive

    Dollar (USA) losing its dominance can be at most transitory. Factors which made US a great place to emigrate hasn’t changed at all*

    • @redtea@lemmygrad.ml
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      151 year ago

      USA has the most potential for innovation

      I mean this bit’s not far off. There’s loads of room to innovate with public healthcare, efficient and affordable public transport and housing, accessible education, and enfranchisement.

    • @Shrike502@lemmygrad.ml
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      111 year ago

      really, what did China, Russia, India or Europe put something totally new in place for the last 78 years

      Okay now them’s fighting words. If they said Russia and 30 years (the length of time the current federation exists) there may have been some wiggle room. But the entire period after 1945? Seriously? I’m guessing it is one of those “USSR and China stole everything from USA, including things USA never had” types.