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The dedollarization is a path with no return. The clever ones will join China and the BRICS before the fall. This will be the new global order.
Imagine working 40 years at the CIA destabilizing the global south for this dude to do a Strangelove and wipe his ass all over your life's work cause his dick stopped working
You love to see it.
Glory to comrade JDPON Don! 🫡 /s
we would not be the same country any longer
Newsflash: you're way past that point. No one believes, trust or respect the USA any longer.
De-dollarization can't happen fast enough, as the dollar is one of the pillars of US power. Good thing countries are banding together to make it a priority.
I have personally advocated for doing this exact thing quite a few times over the past decade or so. It simply isn't fair that the US gets to tax people from all over the world when they print more money.
It's also interesting for California and other blue states.
Since Trump is attacking the blue states especially, there's a form of warfare there. As we all know, wars are really expensive and are often decided by who can stay solvent longer.
Normally, that would be California and other blue states, because they have the better economy. If they stopped paying taxes, that would severely harm Trump.
However, through the federal reserve, Trump can just print infinite amounts of dollars, and that effectively overrides the blue states' strong economy.
So the blue states have a serious interest in de-dollarization, sothat Trump's money-printing federal reserve becomes meaningless.
Imagine if the Bank of North Dakota decided to acquire reserves of BRICS currencies
Explain how Trump can order the federal reserve to simply print infinite money? That seems like a total lack of checks and balances. I don't see that happening at all. But it sounds good online.
They simply do press a button and numbers appear in a federal account. There is some bureocracy involved but that's how it works in a nutshell.
The US can do this freely without much repercussions because of the US role as an intenational reserve currency, the inflation that comes with printing dollars is offloaded to the rest of the world while the US increases it's amount of dollars.
That seems like a total lack of checks and balances
Where have you been
Not in disagree with that statement to some degree. But going full authoritarian, and I mean full to the point if mythical scenarios that some people online are spouting. I just don't see that happening. Sure there's a shit load of injustice, imbalance of power, overreach, all sorts of adjectives, adverbs, etc. But I think some of these what ifs or scenarios are far fetched and the internet loves to reach.
There's been loads of cover ups, breaches of power, scandals, you name it. But printing infinite money because trump says so and crashing the global economy is not high up on the bingo card. Anything is possible. I'm just saying it seems highly unlikely is all.
basically when the federal government goes into debt, that basically means that the federal reserve which you can imagine like a big bank hands out a loan to the government.
the government doesn't really have to pay back that debt, ever. (it technically has to but that can be avoided by simply taking out a new loan at a later time).
i hope i explained that correctly.
It does have to pay interest on that debt to all the bond holders, if it doesn't then the bonds lose value and everyone that owns them trys to offload them.
Which they print too.
if the interest is just as high as the general inflation, then the government can just take out extra loans to serve the interest without actually increasing the real total debt, because the nominal increase in debt is just eaten by the inflation.
the federal reserve which you can imagine like a big bank hands out a loan to the government.
No. Debt goes directly to markets. Federal Reserve QE operations are acts of imagining new money to buy bonds from the market. You are describing QE operations, not debt. Past QE operations have forgone interest on Federal reserve holdings, gifting it to Treasury such that the bonds that Fed holds become interest free. The accounting magic is that when the bond is finally due, the Federal reserve does get paid in order to erase the imaginary money they created to buy the bonds. But a given QE balance sheet level, they just buy a new bond from the market with new imagined money.
Increasing supply (printing) without increased demand (taxes) will cause the price (dollar value) to go down. If it goes down too fast, then nobody will want dollars until tax season, and the dollar will hyperinflate.
Conspiracy theory: that's exactly what Trump wants because he takes crypto bribes.
it all fits together really nicely, somehow. i'm not sure whether trump actually has a plan or things just randomly fit, though:
I thought Trump and the project 2025 gang's entire goal was the devaluation of the dollar.
I would be willing to bet the absolute geniuses behind project 2025 planned for a very specific percentage of devaluation in order to still be wildly wealthy but absolutely crush the general pop.
They just can't do it because they are fuckin idiots. They will burn it all down trying though.
Not sure that is specific Project 2025 item, though it is a consequence of Trump trade policy. US$ value is a function of total trade with US. A $ is not destroyed when it is sent abroad, and there is general appeal to use it to buy US assets to ensure the wealth to purchase more imports. Unjustifiable extortion is resulting in less capital inflows to US treasuries even as the colonies rulerships seemingly submit to the extortion.
As OP's charts show, China saved the US in GFC aftermath legitimizing their extreme QE and bailouts.
Musk declared on Twitter, “We will coup whoever we want! Deal with it”.
i used to think that trump et. al. unmasking de facto american international policy would help make americans understand what's happening, but now it's clear that they just never cared.
BRICC current dedollerization has more to do with his tarrifs attacks harm to international trade then then anything else. Making trade with your nation less profitable. Is a rather stupid move if you want the world to use your currency to trade amounts each other.
When the global currency is run by a petty man child. It is the nations not making an effort to move away from it that are more worrying.
May if he wasn’t actively crashing the dollar, people wouldn’t want to move away from it.
Countries that value financial sovereignty would still be interested.
"Trump insider" sounds like a tapeworm
BRICS as an organization and not as a loose grouping concept is somehow less than the sum of its parts I always think
Brics is basically an alignment against the west, rather than for something. Each of the members has ambitions that are, at best, completely different from one another, and in some cases, contradictory. It reminds me of the cold war era non-aligned movement.
The biggest De-Dollarization efforf is done in the White House itself, with their attempt to get the US Treasury under control.
Yeah. A Trump White House is the biggest proponent to dedollarization.
You likely mean getting the federal reserve under control. The Treasury is already under executive control and is intended to be so.
Everyday I wake up wishing that this rapist President will finally choke to death on his well done steak and that his supporters will join him in hell.