China and all its allies are dumping the US Dollar which is the most effective method to fight US.
The US dollar has been the official currency for international trade for years now. Currently all the BRICS nations and allies are using their local currencies to trade in an attempt to dump the dollar and push back against American hegemony.
BRICS nations are Brazil, Russia, India, China and South Africa. Brazil has 11 trading partners in South America. Russia has 8 trading partners in Europe. India has 8 trading partners. China has 15 trading partners and South Africa has 34 trading partners if Africa.
Concerning a BRICS expansion, Russia Foreign Minister, Sergey Lavrov stated that Algeria, Argentina, and Iran had all applied, while it is already known that Saudi Arabia, Türkiye, Egypt and Afghanistan are interested, along with Indonesia, which is expected to make a formal application to join at the upcoming G20 summit in Bali.
Other likely contenders for membership include Kazakhstan, Nicaragua, Nigeria, Senegal, Thailand and the United Arab Emirates. All had their Finance Ministers present at the BRICS Expansion dialogue meeting held in May.
The total population of all the nations in BRICS and allies is 4.257 billion people or just over 50% of the total global population in 2022. They are dumping the US Dollar.
Dethroning the king of currency: The US dollar has been called the king of currency. It became the official reserve currency of the world in 1944. The decision was made by a delegation from 44 Allied countries called the Bretton Woods Agreement.
Since then, the dollar has enjoyed a powerful status in the world. It has given the US a disproportionate amount of influence over other economies. In fact, the US has been using sanctions as a tool to achieve foreign policy goals. Moreover, US is also using the SWIFT system of international currency transfer to control the use of US Dollar. In addition, the US frequently uses military power to enforce the use of US Dollar. Unfortunately, the US has been misusing its privilege to hurt so many nations around the world. As a result, US inflation hit 40-year high and national debt is historical high.
US national debt is highest in history as shown above.
Former Assistant Secretary for Public Affairs for the U.S. Department of the Treasury, Monica Crowley has warned of “catastrophic” consequences if the U.S. dollar loses its status as the world’s reserve currency. “That would mean the end of the U.S. dollar,” she said, predicting that “there would be a complete implosion of the global economic system.”
Emphasizing that the U.S. dollar having the world’s reserve currency status “has been a real privilege,” she expressed: “We’ve abused the privilege by wholly reckless monetary and fiscal policy for so many years, certainly over the last couple of years, which has really devalued the dollar.”
She explained what would happen if emerging economies move away from the U.S. dollar towards the Chinese yuan and the USD is no longer the world’s dominant currency. She stressed.
She explained that since the end of World War II, the dollar has been considered a safe haven. Initially, it was backed by gold, but after President Nixon took the U.S. off the gold standard, there has been no hard asset backing the dollar for the last 50 years. Instead, it has been backed by “the strength and economic power” of the U.S., she said.
She added that another important factor is “the fact that oil has always been traded in dollars”
She continued: “On top of that, now you do have this perfect storm of Biden’s weakness, his war on American domestic energy production, the Ukraine war … Because of all of these things, we’ve got America’s enemies, led by China, forming a new economic bloc.”
She added that since we are at a pivotal moment, “all it would take at this point … is for Saudi Arabia, who has indicated that they are open to this, to say: ‘You know what, we’re going to be open to considering other currencies to trade in oil.'”
If that were to happen, there would be a complete implosion of the global economic system, but certainly the American economic system. And if that were to happen, you’d be looking at sky-high inflation just raging, Weimar Republic kind of inflation. If you think inflation is bad right now, just wait.
“But more importantly, we would lose our economic dominance and we would lose our superpower status,” she noted.
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