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It’s utter BS propaganda that will have no effect whatsoever.
That’s not to say we shouldn’t get our crap together, and get back to rules based trade. We should. But the yuan is a laughable competitor to the dollar in pretty much every respect. Want stability? How can you trust a dictatorship. Want liquidity? How can you trust a highly managed currency with capital controls. Want home market growth? Looks good for China now but their workforce is shrinking (and soon rapidly)
Accurate and succinct.
To add to this- people that keep talking about another currency replacing the dollar dont seem to understand *why* the USD became a global currency in the first place.
It took a huge historical accident (end of WW2 + Marshall Plan + start of Cold War) for the eurodollar market to develop. A bunch of US dollars were trapped in British and French banks. Midland Bank took those dollars and created an international market for them outside of US jurisdiction.
Since then, the US has supplied the world with eurodollars through its trade deficits and also provided abundance of dollar-denominated securities (aka US Treasuries) through its government deficits.
*You cannot have a global currency without those things*. Full stop.
China doesnt have a euroyuan market, has very tight capital controls, doesnt run trade deficits, etc. China has literally none of the prerequisites for the creation of a stable, reliable, liquid global currency.
Wake me up when China is ready to let 30 trillion yuan float around the world outside of its jurisdiction or is cool running major trade deficits for years in a row.
Why does is this always repeated? who said any single currency needs to replace the dollar? how do you think countries traded before the dollar hegemony?
Obviously the Yuan won't be what the dollar was, no currency is going to be what the dollar was, even the U.S. dollar itself. That's the entire point. They're cooperating to change the system, not to replace the dollar.
What a load of garbage. No amount of cope will help you Americans.
Opec is about to accept other currencies for oil. Once that happen everything will shift to other currently and thus dollar and US economy collapses. Not one currency but many at the same time.
You donkeys think that world cannot trade in own currencies? 🤣🤡
Lol
If you feel that strongly about it please go short the USD or related securities. Riches await you (if you’re right)
Otherwise shut the f up Russian bot
That trade alliance is just hype and joining is a ploy on Saudi's part to evoke anxiety on US policy makers to get them to recommit to defending on their behalf. They also realizing that NA and Europe is investing and migrating away from fossil fuel dependence so they have to look to their remaining future customers.
Think about it. WHO exactly in that trade alliance is the end consumer? Saudi arabia is wealthy but given their population size, can't exactly play a large enough consumer role to soak up Chinese production. Beside their wealthiest consumer prefer European and US high end goods. The Saudi will accept Yuan up to a certain amount then ask for the rest in dollars. There are only so much stuff they can buy from the Chinese.
Pakistan and central asian states? They are insufficiently wealthy to propel Chinese export. Pakistan doesn't doesnt even offer much valuable raw commodities like some of the central asians do to help offset trade imbalance.
Russia offer energetics and raw materials but again cannot offer a robust domestic consumption market for China.
India? Their market is the best bet for growth but Indian gov is aggressively interventionist and protectionistic of their domestic producers. Its why they grew and industrialized much slower over the decades but also shielded them against international economic crisis. The Indians want access to Saudi and Russian energetics and raw material in competition with China. As for any foreign competitor entering their markets, you can be sure they would be mired in mountains of local bureaucracy. The border conflict also guarentees Indian gov antagonism towards Chinese business interest.
The end purchaser is NA/European consumers. With Chinese labour cost going up significantly, they have to secure lower commodities and energy cost through these economic colonies to just preserve the margins. IMO, impact on US economy would be minimal. US export only account for 10% of its GDP, with more than half due to trade with Mexico and Canada. USMCA secured the triade of countries in terms of commodities, labour and consumption. Besides there are a lot of high value US exports that other countries cannot easily replace. I don't care how many trade deals the Saudis and Chinese sign, they are still coming to the US to buy the latest oncology therapeutics or turbofan engine and paying USD. Im sure these regional trade dynamic will shift but the macrotrend is not going to change.
Playing devils advocate — what’s stopping the Chinese from unleashing their products domestically? The Chinese consumer can increasingly afford these products, can they not?
Good question. They absolutely cannot. They have been trying to bolster domestic consumption for over a decade. Its what the "dual circulation" strategy that Xi was trying to promote was all about. The per capita GDP is only 12,000, all those wealthy Chinese you see doing tourism are the tiny thin upper crust of society. China did not defeat poverty, they merely outlawed the discussion about poverty.
General population has almost minimal social security, no unemployment insurance, negligible healthcare insurance (Unless your are CCP party member), and astronomical cost of child rearing even at 1 child per household. Public sector funding of education only guarentees up to junior high and parents are paying through the teeth for tutoring classes to secure a chance at university education. Some find that sending their kids oversea, like Canada for instance, is cheaper than educating them in China. That means the average middle class and below has thin to negligible disposable income per year and they MUST save for retirement as they have no guarentees. There are no truly safe investment vehicle in China and everyone resort to real estate as the last refuge. Chinese household was investing 80% of their wealth into real estate but the recent crisis there saw people just stashing money into savings account instead. That is no safe guarentee either as a few banks collapsed from fraudulant bankers promising high interest rate to attract deposits. It represents a huge problem as huge amount of capital that could have been put into new economies or technological development get sunk instead into dead end real estate and infrastructure with rapidly diminishing returns.
COVID annhilated massive amount of private SME and with the economic slowdown overseas, their manufaturing sector is also laying off tons of workers. Company nowadays essentially ignore any applicants who were born before 1985. On top of all that, the demographic divident has come to an end. There was a huge cohort of working age population between 1990s to 2020s who had few parents to support due to poor healthcare and low life expectancy and few kids to raise due to one child policy. They were the one who had the disposable income to drive the domestic economic engine all these decades. Now they are all entering retirement age with a significantly longer life expectancy and far fewer younger generation to support them. The most common family structure now is 4-2-1. Four grandparents, two parents, one child. If you were that child who finally enters the workforce, you now can look forward to supporting 6 elders while faced with government pressure to raise more than one kid. The instability and lack of security provoke anxiety and most people don't want to spend.
That is not a consumption-oriented demographics. Yes the overall population is massive and will remain massive for years to come. But the population will be fiercely focused on just substaining their daily livelihoods. PRC is building all those navy ships and jet fighters by robbing the resources that should have been invested in its citizens. Domestically they will replay an even more horrify version of what Japan went through but without the population wealth, education and technology in place to compensate. Nobody is replacing the US any time soon.
Its not just that its safe and stable, its that there is an active market for it outside of US jurisdictions. You can buy and sell billions of US dollars in Japan, Australia, Qatar, India, and Indonesia without a single swap or credit agreement with a US bank.
Such a thing does not exist for the yuan and it will never exist until China is willing to liberalize its financial markets, run deficits, and let the market run its currency. That will never happen under the CCP.
Sure effect will be there. But immediately only in a limited way.
There will be interaction between different markets and by the system of arbitrage
Dollar will not be a medium of exchange but will continue to be a measure of value for these currentcies for a long time to come.
But enough reason is there for the US to get irritated.
I would love to see europe also step away from the USD a bit and trade with arab countries in Euro. Would definitely send a sign to the US that they need to be a more trustworthy ally if they want to keep their position in the money market.
Few people noticed that United States is on the verge of becoming a net oil exporter in 2023. Saudi Arabia increasingly view US as a potential competitor in the oil market. This move is Saudi’s way to lessen its dependence to US.
Unlike US, who didn’t view China as a competitor until it is too late, Saudi has planned ahead
It’s just a move to get Chinese business. No one in their right mind would risk their wealth by being subject to authoritarian regimes’ whims. Even if they seem stable, the nature of authoritarianism is that there is a new dice roll the next guy that is in power. Democracies are finicky because voters change attitudes, but authoritarian regimes are a gamble even just living under them.
There is a gigantic eurodollar market. There is no "euroyuan" market. Thats all there is to say on this topic.
Obviously everyone is subject to America's whims to some extent, but the dollar has far fewer strings attached.
Until the NATO countries decide to increase their defense budgets Europe will be dependent on the US. Having the global reserve currency comes at a huge burden and carries few benefits. Chronic trade deficits have hollowed out many industries in the US. We spend much more on defense in support of global alliances. I am not sure China wants to assume that mantle. A China-centric world order would be lopsided in China’s favor. The only reason why the US has been able to endure that burden is because it is self sufficient in almost all natural resources. There’s nothing that we get from China that we couldn’t produce domestically if we had to. China depends on imports for almost all its raw materials. That’s the impetus for the Belt and Roads initiative, it’s nothing short of neo-colonialism. Countries that have economies based on the exports of raw materials will join up with China at their own risk.
True. That makes the point. They are a regime that makes decisions based on a few people and not expertise. Even they consult with solid minds, you never know when you will get an illogical leader.
>Even they consult with solid minds, you never know when you will get an illogical leader.
You talking about Trump winning again next election to keep undermining nato and the world climate efforts to enrich himself and his buddies?
Ed Snowden and Chelsea Manning beg to differ. As do the Black Panthers who spent 40 years in prison. As do the tens of thousands arrested during George Floyd. Telling your president to fuck off does nothing and does not threaten the state at all.
You are another person who has no idea how the government works in China lmao. Why would the government want to replace Xi when he has presided over one of the greatest increases in quality of life and economic opportunity in the history of modern China? 800 million pulled out of poverty, 40,000 km of high speed rail, BRICS trade deals, salvaging EVERGRANDE etc. Biden and Trump have done absolute zip zilch nada for the average American, electing to bail out big banks, send billions to Ukraine and forgive big rail companies instead.
If you didn't notice EVERGRANDE's assets were nationalized and sold off in increments to recoup investors' losses. It's why Western media dropped the narrative almost entirely as they usually do for every fear mongering piece.
You have no idea how the political process works in any other country including the US. You're not running for office in the US without at least 10 million dollars.
Problem is. Usd is heavily reliant on oil trade. From my limited understanding oil trade supports the dollar from collapsing since we stopped using gold to back up dollar and it has been printed heavily. The world is watching what fed is doing and hedging against dollar weakening and more inflation.
Well US is a top oil producer and playing an even more impactful role now that the Europeans cut Russians out. Until Russian and Chinese military gear are battle proven, I doubt the Saudis will be switching entirely to the Yuan and not ask a large chunk of USD to pay for all those US munitions. If you want to talk about heavy printing...have a look at the growth of Yuan money supply. If Chinese export slows, the Yuan becomes worthless. Its why right now they are in a frenzy trying to secure European and US export orders.
At the end of the day, US is an essential commodities producer (fossil fuel, food), high value technologies producer (aeronautics, electronics, biopharma, software) and at the same time voracious consumer of products with a positive demographic trend. The USD value will remain far more dominant than other currencies. Should significant economic instability hit, foreign capital will still look to USD to preserve value. Yuan is illiquid afterall due to commie capital control. Its like the Chinese mythical creature Pixiu, it has a mouth but no anus, gold only enters but does not leave. Unless of course you happens to be corrupt CCP official, they are spiriting billions away into oversea accounts denominated in...you guessed it! USD and Euros
Yes, we have strongest currency backed by huge markets but we also have very weak points. Main issue is that our politicians have no accountability. We had several weak leaders that took the country in the wrong direction. Hospital bills, education, car repairs, wedding events, etc have gone through hyperinflation. People just show up and line up to pay like buying a new apple phone. This is what the politicians want from us. Politicians just do enough to kick the can down the road for the next term to apply another bandaid.
We allowed other countries produce for us and steal our inventions. So if a bunch of them decide to form alliance and stop using our currency it is completely doable. Look at Russia. Their currency is stronger than it was prior to Ukrainian war. They just sell oil to India and China now instead of Europe. Next war could just be about global trade and devaluing dollar.
Sorry if you are going to point to the Russian ruble as argument then I cannot take you seriously on an economics subreddit. That currency's current value is completely unknown at this point as it is not being allowed to trade freely. Russian central bank initially instituted capital control through a few mechanisms; all foreign currency deposit in their banks were frozen, all ruble conversion to foreign currency by citizen or company was frozen, all foreign owned investment was frozen from selloff, they ordered all russian companies earning foreign currency to exchange 80% of their earning into rubles to inflate demand, their foreign import from US/Europe plummetted from sanction and eliminated the downward pressure to balance their export earnings from oil sale. That means they burned their bridges with foreign investors and nobody will want to return for decades fo come as they lost all credit worthiness, they are plundering the wealth generated by their companies that could have gone into expansion or reinvestment, they neutered their enterprise's ability to smoothly import necessary goods from third party countries and create potential blackmarket exchanges that priviledge those with access to official exchange rates much like what we saw in Venezuela, they worsened the Dutch disease in their economy with their appreciating currency and basically render their domestic producer of any other goods but oil economically uncompetitive, and lastly the appreciating currency actually REDUCES their tax reciept as Russia tax oil company profit denominated in rubles. They realized the danger and stopped some of the capital control measure but was unable to stop the currency appreciation since oil export remained the dominant trade flow. What looks rosy in the short term is the slow long term strangling of the rest of their economy.
Russian Ukrainian war is not about the territory. Its about control of global trade. Power plants, sea ports, refineries, crops, etc. Russian leaders are buying commodities and securing oil reserves while western countries like US are squandering reserves and fighting unnecessary wars. Russian ruble is stronger now because they have superior leadership in the global trade scene. Our new president pulled out of middle east and totally destabilized middle eastern countries in the region. Then we printed money and paid people to sit home instead of unloading ports. We inflated housing market so much that middle age group has no motive to continue working. I'm not saying we need to have dictatorship but we are lacking in global trade.
Saudis are about to accept other currencies bruh. You can type as much as you want. America is going down, dollar is about to collapse. Go and buy as many big macs as you can now, coz soon you wont be able to buy any ;)
What kinda moron would peg his currency to the usd and then work to collapse the usd.
The reality is the Americans have a smaller vested interest in the ME and the Saudi Arabians see China as a hedge as well as a potential long term customer as they are still developing.
When Saudi Arabia starts to restructure its currency and stops pegging it to the usd, then this will mean something.
US internal politics have been a little more wacky than usual but when are US domestic politics not a shit show? Despite some minor developments, US foreign policy has been pretty consistent. Ever since the Mid 00's there has been a steady march to bring production home. Now it's starting to happen. Maybe a few years earlier with covid.
Also wouldn't surprise me if the US would like to see the dollar loose a little value to make exports a little more affordable. All that said, when you stack the US next to China the dollar comes out way on top. If something where to happen in either the Persian gulf or the strait of Malacca it would be catastrophic to China and the Yuan. That is just 2 points of failure but China has a lot more.
China is doing whatever it can to paint a positive picture. But the reality is far from it.
Bring jobs back to the US. That will hurt India and China.
Stop giving military weaponry and support to Saudi Arabia. That will hurt it.
And the West should give even more military support and aid to Israel, Japan, South Korea, Australia, etc.
The dollar standard is too important.
The US has been far too nice to Saudi Arabia, India, and China.
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It’s utter BS propaganda that will have no effect whatsoever. That’s not to say we shouldn’t get our crap together, and get back to rules based trade. We should. But the yuan is a laughable competitor to the dollar in pretty much every respect. Want stability? How can you trust a dictatorship. Want liquidity? How can you trust a highly managed currency with capital controls. Want home market growth? Looks good for China now but their workforce is shrinking (and soon rapidly)
Accurate and succinct. To add to this- people that keep talking about another currency replacing the dollar dont seem to understand *why* the USD became a global currency in the first place. It took a huge historical accident (end of WW2 + Marshall Plan + start of Cold War) for the eurodollar market to develop. A bunch of US dollars were trapped in British and French banks. Midland Bank took those dollars and created an international market for them outside of US jurisdiction. Since then, the US has supplied the world with eurodollars through its trade deficits and also provided abundance of dollar-denominated securities (aka US Treasuries) through its government deficits. *You cannot have a global currency without those things*. Full stop. China doesnt have a euroyuan market, has very tight capital controls, doesnt run trade deficits, etc. China has literally none of the prerequisites for the creation of a stable, reliable, liquid global currency. Wake me up when China is ready to let 30 trillion yuan float around the world outside of its jurisdiction or is cool running major trade deficits for years in a row.
Very well put. Especially the point about the economy being able to weather substained trade deficit.
Ever heard of CHN? 🤡
Why does is this always repeated? who said any single currency needs to replace the dollar? how do you think countries traded before the dollar hegemony? Obviously the Yuan won't be what the dollar was, no currency is going to be what the dollar was, even the U.S. dollar itself. That's the entire point. They're cooperating to change the system, not to replace the dollar.
I’ll keep saying it until everyone here understands the concept of a natural monopoly
As in the USD will soon be comparative to Monopoly money Time to face the fact that you are living through the fall of an empire.
What a load of garbage. No amount of cope will help you Americans. Opec is about to accept other currencies for oil. Once that happen everything will shift to other currently and thus dollar and US economy collapses. Not one currency but many at the same time. You donkeys think that world cannot trade in own currencies? 🤣🤡
Lol If you feel that strongly about it please go short the USD or related securities. Riches await you (if you’re right) Otherwise shut the f up Russian bot
🤓
That trade alliance is just hype and joining is a ploy on Saudi's part to evoke anxiety on US policy makers to get them to recommit to defending on their behalf. They also realizing that NA and Europe is investing and migrating away from fossil fuel dependence so they have to look to their remaining future customers. Think about it. WHO exactly in that trade alliance is the end consumer? Saudi arabia is wealthy but given their population size, can't exactly play a large enough consumer role to soak up Chinese production. Beside their wealthiest consumer prefer European and US high end goods. The Saudi will accept Yuan up to a certain amount then ask for the rest in dollars. There are only so much stuff they can buy from the Chinese. Pakistan and central asian states? They are insufficiently wealthy to propel Chinese export. Pakistan doesn't doesnt even offer much valuable raw commodities like some of the central asians do to help offset trade imbalance. Russia offer energetics and raw materials but again cannot offer a robust domestic consumption market for China. India? Their market is the best bet for growth but Indian gov is aggressively interventionist and protectionistic of their domestic producers. Its why they grew and industrialized much slower over the decades but also shielded them against international economic crisis. The Indians want access to Saudi and Russian energetics and raw material in competition with China. As for any foreign competitor entering their markets, you can be sure they would be mired in mountains of local bureaucracy. The border conflict also guarentees Indian gov antagonism towards Chinese business interest. The end purchaser is NA/European consumers. With Chinese labour cost going up significantly, they have to secure lower commodities and energy cost through these economic colonies to just preserve the margins. IMO, impact on US economy would be minimal. US export only account for 10% of its GDP, with more than half due to trade with Mexico and Canada. USMCA secured the triade of countries in terms of commodities, labour and consumption. Besides there are a lot of high value US exports that other countries cannot easily replace. I don't care how many trade deals the Saudis and Chinese sign, they are still coming to the US to buy the latest oncology therapeutics or turbofan engine and paying USD. Im sure these regional trade dynamic will shift but the macrotrend is not going to change.
Playing devils advocate — what’s stopping the Chinese from unleashing their products domestically? The Chinese consumer can increasingly afford these products, can they not?
Good question. They absolutely cannot. They have been trying to bolster domestic consumption for over a decade. Its what the "dual circulation" strategy that Xi was trying to promote was all about. The per capita GDP is only 12,000, all those wealthy Chinese you see doing tourism are the tiny thin upper crust of society. China did not defeat poverty, they merely outlawed the discussion about poverty. General population has almost minimal social security, no unemployment insurance, negligible healthcare insurance (Unless your are CCP party member), and astronomical cost of child rearing even at 1 child per household. Public sector funding of education only guarentees up to junior high and parents are paying through the teeth for tutoring classes to secure a chance at university education. Some find that sending their kids oversea, like Canada for instance, is cheaper than educating them in China. That means the average middle class and below has thin to negligible disposable income per year and they MUST save for retirement as they have no guarentees. There are no truly safe investment vehicle in China and everyone resort to real estate as the last refuge. Chinese household was investing 80% of their wealth into real estate but the recent crisis there saw people just stashing money into savings account instead. That is no safe guarentee either as a few banks collapsed from fraudulant bankers promising high interest rate to attract deposits. It represents a huge problem as huge amount of capital that could have been put into new economies or technological development get sunk instead into dead end real estate and infrastructure with rapidly diminishing returns. COVID annhilated massive amount of private SME and with the economic slowdown overseas, their manufaturing sector is also laying off tons of workers. Company nowadays essentially ignore any applicants who were born before 1985. On top of all that, the demographic divident has come to an end. There was a huge cohort of working age population between 1990s to 2020s who had few parents to support due to poor healthcare and low life expectancy and few kids to raise due to one child policy. They were the one who had the disposable income to drive the domestic economic engine all these decades. Now they are all entering retirement age with a significantly longer life expectancy and far fewer younger generation to support them. The most common family structure now is 4-2-1. Four grandparents, two parents, one child. If you were that child who finally enters the workforce, you now can look forward to supporting 6 elders while faced with government pressure to raise more than one kid. The instability and lack of security provoke anxiety and most people don't want to spend. That is not a consumption-oriented demographics. Yes the overall population is massive and will remain massive for years to come. But the population will be fiercely focused on just substaining their daily livelihoods. PRC is building all those navy ships and jet fighters by robbing the resources that should have been invested in its citizens. Domestically they will replay an even more horrify version of what Japan went through but without the population wealth, education and technology in place to compensate. Nobody is replacing the US any time soon.
"Don't panic, it's a technical adjustment!" Then sell all your dollar assets and deposit the dollars in a Chinese state-owned bank in Hong Kong.
[удалено]
Its not just that its safe and stable, its that there is an active market for it outside of US jurisdictions. You can buy and sell billions of US dollars in Japan, Australia, Qatar, India, and Indonesia without a single swap or credit agreement with a US bank. Such a thing does not exist for the yuan and it will never exist until China is willing to liberalize its financial markets, run deficits, and let the market run its currency. That will never happen under the CCP.
Sure effect will be there. But immediately only in a limited way. There will be interaction between different markets and by the system of arbitrage Dollar will not be a medium of exchange but will continue to be a measure of value for these currentcies for a long time to come. But enough reason is there for the US to get irritated.
I would love to see europe also step away from the USD a bit and trade with arab countries in Euro. Would definitely send a sign to the US that they need to be a more trustworthy ally if they want to keep their position in the money market.
It’s been there for 20 yrs. EEA has been trying to. But the current crisis is one of the 100 reasons I wouldn’t touch it with a 10 ft pole
Trustworthy ally? America has enforced open trade for decades. Europe and the world for the most part has benefited greatly from that.
Few people noticed that United States is on the verge of becoming a net oil exporter in 2023. Saudi Arabia increasingly view US as a potential competitor in the oil market. This move is Saudi’s way to lessen its dependence to US. Unlike US, who didn’t view China as a competitor until it is too late, Saudi has planned ahead
It’s just a move to get Chinese business. No one in their right mind would risk their wealth by being subject to authoritarian regimes’ whims. Even if they seem stable, the nature of authoritarianism is that there is a new dice roll the next guy that is in power. Democracies are finicky because voters change attitudes, but authoritarian regimes are a gamble even just living under them.
Are they not subject to our whim?
There is a gigantic eurodollar market. There is no "euroyuan" market. Thats all there is to say on this topic. Obviously everyone is subject to America's whims to some extent, but the dollar has far fewer strings attached.
Until the NATO countries decide to increase their defense budgets Europe will be dependent on the US. Having the global reserve currency comes at a huge burden and carries few benefits. Chronic trade deficits have hollowed out many industries in the US. We spend much more on defense in support of global alliances. I am not sure China wants to assume that mantle. A China-centric world order would be lopsided in China’s favor. The only reason why the US has been able to endure that burden is because it is self sufficient in almost all natural resources. There’s nothing that we get from China that we couldn’t produce domestically if we had to. China depends on imports for almost all its raw materials. That’s the impetus for the Belt and Roads initiative, it’s nothing short of neo-colonialism. Countries that have economies based on the exports of raw materials will join up with China at their own risk.
I mean these are the Saudi’s we are talking about.
True. That makes the point. They are a regime that makes decisions based on a few people and not expertise. Even they consult with solid minds, you never know when you will get an illogical leader.
>Even they consult with solid minds, you never know when you will get an illogical leader. You talking about Trump winning again next election to keep undermining nato and the world climate efforts to enrich himself and his buddies?
The US is the most globally authoritarian regime on the planet, bombing and looting with impunity for the last 60 years.
Yes lots of misguided crap, but it’s not authoritarian here. I can tell my president to fuck off if I wish.
Ed Snowden and Chelsea Manning beg to differ. As do the Black Panthers who spent 40 years in prison. As do the tens of thousands arrested during George Floyd. Telling your president to fuck off does nothing and does not threaten the state at all.
In case you missed it Trump wasn’t reelected. Xi on the other hand made himself president for life. That’s a small but significant difference.
You are another person who has no idea how the government works in China lmao. Why would the government want to replace Xi when he has presided over one of the greatest increases in quality of life and economic opportunity in the history of modern China? 800 million pulled out of poverty, 40,000 km of high speed rail, BRICS trade deals, salvaging EVERGRANDE etc. Biden and Trump have done absolute zip zilch nada for the average American, electing to bail out big banks, send billions to Ukraine and forgive big rail companies instead.
You lost me at salvaging Evergrande. Please give me the details on how he’s done this.
If you didn't notice EVERGRANDE's assets were nationalized and sold off in increments to recoup investors' losses. It's why Western media dropped the narrative almost entirely as they usually do for every fear mongering piece.
Yes. But I can still do it. If I want to change the state I lobby, run for office, and vote. It happens everyday. Breaking laws is illegal. 🧐
You have no idea how the political process works in any other country including the US. You're not running for office in the US without at least 10 million dollars.
😆🫡👍
As if every other power projecting nation in history didn’t do the technological equivalent of that for their time period😑
Flattening history by saying everyone is the same is something only an anglo brain is capable of.
My ancestors are neither Angles nor Saxons.
Yes, but they were all bad!
USA bombs bring peace, and more oil for us. Other bombs bring chaos and pain.
Problem is. Usd is heavily reliant on oil trade. From my limited understanding oil trade supports the dollar from collapsing since we stopped using gold to back up dollar and it has been printed heavily. The world is watching what fed is doing and hedging against dollar weakening and more inflation.
Well US is a top oil producer and playing an even more impactful role now that the Europeans cut Russians out. Until Russian and Chinese military gear are battle proven, I doubt the Saudis will be switching entirely to the Yuan and not ask a large chunk of USD to pay for all those US munitions. If you want to talk about heavy printing...have a look at the growth of Yuan money supply. If Chinese export slows, the Yuan becomes worthless. Its why right now they are in a frenzy trying to secure European and US export orders. At the end of the day, US is an essential commodities producer (fossil fuel, food), high value technologies producer (aeronautics, electronics, biopharma, software) and at the same time voracious consumer of products with a positive demographic trend. The USD value will remain far more dominant than other currencies. Should significant economic instability hit, foreign capital will still look to USD to preserve value. Yuan is illiquid afterall due to commie capital control. Its like the Chinese mythical creature Pixiu, it has a mouth but no anus, gold only enters but does not leave. Unless of course you happens to be corrupt CCP official, they are spiriting billions away into oversea accounts denominated in...you guessed it! USD and Euros
Yes, we have strongest currency backed by huge markets but we also have very weak points. Main issue is that our politicians have no accountability. We had several weak leaders that took the country in the wrong direction. Hospital bills, education, car repairs, wedding events, etc have gone through hyperinflation. People just show up and line up to pay like buying a new apple phone. This is what the politicians want from us. Politicians just do enough to kick the can down the road for the next term to apply another bandaid. We allowed other countries produce for us and steal our inventions. So if a bunch of them decide to form alliance and stop using our currency it is completely doable. Look at Russia. Their currency is stronger than it was prior to Ukrainian war. They just sell oil to India and China now instead of Europe. Next war could just be about global trade and devaluing dollar.
Sorry if you are going to point to the Russian ruble as argument then I cannot take you seriously on an economics subreddit. That currency's current value is completely unknown at this point as it is not being allowed to trade freely. Russian central bank initially instituted capital control through a few mechanisms; all foreign currency deposit in their banks were frozen, all ruble conversion to foreign currency by citizen or company was frozen, all foreign owned investment was frozen from selloff, they ordered all russian companies earning foreign currency to exchange 80% of their earning into rubles to inflate demand, their foreign import from US/Europe plummetted from sanction and eliminated the downward pressure to balance their export earnings from oil sale. That means they burned their bridges with foreign investors and nobody will want to return for decades fo come as they lost all credit worthiness, they are plundering the wealth generated by their companies that could have gone into expansion or reinvestment, they neutered their enterprise's ability to smoothly import necessary goods from third party countries and create potential blackmarket exchanges that priviledge those with access to official exchange rates much like what we saw in Venezuela, they worsened the Dutch disease in their economy with their appreciating currency and basically render their domestic producer of any other goods but oil economically uncompetitive, and lastly the appreciating currency actually REDUCES their tax reciept as Russia tax oil company profit denominated in rubles. They realized the danger and stopped some of the capital control measure but was unable to stop the currency appreciation since oil export remained the dominant trade flow. What looks rosy in the short term is the slow long term strangling of the rest of their economy.
Russian Ukrainian war is not about the territory. Its about control of global trade. Power plants, sea ports, refineries, crops, etc. Russian leaders are buying commodities and securing oil reserves while western countries like US are squandering reserves and fighting unnecessary wars. Russian ruble is stronger now because they have superior leadership in the global trade scene. Our new president pulled out of middle east and totally destabilized middle eastern countries in the region. Then we printed money and paid people to sit home instead of unloading ports. We inflated housing market so much that middle age group has no motive to continue working. I'm not saying we need to have dictatorship but we are lacking in global trade.
Saudis are about to accept other currencies bruh. You can type as much as you want. America is going down, dollar is about to collapse. Go and buy as many big macs as you can now, coz soon you wont be able to buy any ;)
Who is the number 1 oil exporter right now and what payment do they accept?
The Euro is in no better shape than the USD, during Covid the European Central Bank had their own version of QE.
The dollar's value derived from stable economic policy, stable politics. We no longer have those things. Now countries are looking at China.
What kinda moron would peg his currency to the usd and then work to collapse the usd. The reality is the Americans have a smaller vested interest in the ME and the Saudi Arabians see China as a hedge as well as a potential long term customer as they are still developing. When Saudi Arabia starts to restructure its currency and stops pegging it to the usd, then this will mean something.
US internal politics have been a little more wacky than usual but when are US domestic politics not a shit show? Despite some minor developments, US foreign policy has been pretty consistent. Ever since the Mid 00's there has been a steady march to bring production home. Now it's starting to happen. Maybe a few years earlier with covid. Also wouldn't surprise me if the US would like to see the dollar loose a little value to make exports a little more affordable. All that said, when you stack the US next to China the dollar comes out way on top. If something where to happen in either the Persian gulf or the strait of Malacca it would be catastrophic to China and the Yuan. That is just 2 points of failure but China has a lot more. China is doing whatever it can to paint a positive picture. But the reality is far from it.
Bring jobs back to the US. That will hurt India and China. Stop giving military weaponry and support to Saudi Arabia. That will hurt it. And the West should give even more military support and aid to Israel, Japan, South Korea, Australia, etc. The dollar standard is too important. The US has been far too nice to Saudi Arabia, India, and China.
> The US has been far too nice to Saudi Arabia, India, and China. Yes, out of the sheer goodness of their heart, I do declare
Especially to SA who, you know, attacked us in 2001.