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“Americans Will Be Poor Overnight!” - Reaction To China & Brazil Agreement To Ditch US Dollar
- Thread starter Goldhedge
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Not All Americans. Just the commie kind.
A headline with kind of hyperbolic nonsense does not make me want to invest any time in watching a video. $.02
lulz. Nothing dramatic will happen overnight. De-dolleraztion into a multi-polar currency world and the consequential effects on America's finances will take time to play out. Bilateral trade between Brazil and China isn't going to make Guam tip over into the sea.
It's all on the Saudis. If they stop accepting $USD, then it is over. They will probably accept the other currencies. I know the yuan and ruble are not transparent. The currencies of Brazil and India are crap.
They all could end up losing via arbitrage.
They all could end up losing via arbitrage.
So what do think will happen if the dollars reserve status is lost, or even just greatly reduced in a relatively short time frame?
Will that make us and our fellow countrymen richer? Poorer? Or will everything just magically stay as it is today?
Of course it will, but it's not going to be playing out over the next 50 years, either. It'll be more like a tenth of that, at best. Which to the average, non-attention-paying American citizen, it will seem like overnight.
As I mentioned in post #5, bilateral trade between Brazil and China isn't an extinction level event for the dollar's global reserve status. For more insight into my thoughts on the subject, I invite you to read:
Tin Foil Hats, Economic Reality and the Total Perspective Vortex
Conspiracy theories about a so called New World Order (NWO) and a one world currency have been around for a long, long time. So long that most people, who are not disposed to giving conspiracies a moment's thought, and who have been paying attention to the global economic news, have to be a...
The problem with that line of thinking is that those leading our nation are in favor of what's happening. We've had mostly Globalists dictating our policies for Decades now. Their goal has always been World governance.
Not on its own, but coupled with everything else, it's just further evidence of what's coming.
How much evidence do we see suggesting things will be going in the other direction? All I see, is more and more trade deals being made with the intention of bypassing the dollar. At some point, there'll come a tipping point.
I agree and I've been paying attention to this issue for well over a decade. The BRICS are definitely working towards the de-dollerization goal. It's not going to happen "overnight" though and my objection to the hyperbole in the headline remains.
Russia held close to 180 billion dollars in us treasuries a decade ago, now? around 600 million frozen. That is de dollarization. China has been dumping recently nothing on that scale of decline though.
That's a good start.
...but the clear signs of where this path we are on leads to, were there much longer than a mere Decade ago.
Again, "overnight" is being used as a relative term.
When we're talking a near 100 years of dominance, ending or even just severely reducing its status in a few years time will seem to most people as happening overnight.
Most people think this will play out over several Decades, if it happens at all. (Ie: their normalcy bias is shining through)
....and that reasoning seems to be due to the fact that the last time, (and most other times) that this has happened, it did take several Decades.
However, the pound sterling had the US's support in maintaining its status prior to Bretton Woods.
We do not enjoy that ourselves today, as many other nations are actively working to end the $'s dominance sooner, rather than later.
Also, back in those days Global communication took a lot longer than it does today, and things naturally moved much slower than today.
Imho, if things last as they are until the end of this Decade, we'll be very fortunate.
....but I seriously doubt it'll take that long.
Based upon what I'm seeing, I'm guessing 10 years from now plus or minus 5.
So that's a low end of five years?
If it's done within five years, that'll seem like overnight.
Keep in mind, it'll be a steep downhill ride until then, too. So a five (or even ten) year decline from being on top of the heap, is gonna seem really quick. Because most people will have recent memories of it not being that way, and the woefully uninformed masses are gonna be shell shocked.
When it happens over the course of multiple generations, people have time to adjust their lives to it.
...but if it happens in ten years, plus or minus five, the time to adjust will be short.
The biggest problem is that most of our politicians are ignoring the issue and acting as though it simply cannot happen.
When what they should be doing is everything they can to prevent it.
....but to do that would have required doing things differently long ago, so that the rest of the World never got the idea to change in the first place.
Having the preeminent reserve currency is a privlidge, and should be treated as such.
Instead, our leaders chose to abuse it by running up huge debts and also by wielding it as a club.
...and that has been apparent for far longer than a Decade.
So is it any wonder that most of the World can't wait to dump the $?
Cigarlover
Yellow Jacket
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The end of reserve status is on the way. Powell says there is room in the world for 2 reserve currencies. Maybe, maybe not. The real question is why do we need a reserve currency at all? Every country is just printing paper. Why should any country have to buy another countries currency just so they can purchase goods from a 3rd party? It's a great gig for the reserve country of course but for everyone else it sucks. Especially when the reserve country is abusing its status.
I say let all currencies float freely. The only real reserve that is needed is gold. The most successful a country is (because of it's manufacturing or farming base) the more inflow of capital they will have because of it's exports. The free cash flow is then used to purchase gold by those who produce the most. If you dont produce much and offer no services then your kind of screwed but surely every country can come up with something to export.
In a system such as the one outlined above, the hardest hit in the US will be welfare recipients. They produce nothing and eat up tons of resources. Not sustainable by any means. Thus the reason I think they want the CBDC's. Print unlimited digits to keep the welfare digits flowing. to the unproductive. It also give government complete control of everything and there is virtually no-one that is not aware of this already. Going to be a tough sell except to the welfare class who would benefit. Full implementation is at least a decade out if not more and by then the US will be in full breakup more. At least breaking into 4 regions if not more.
I say let all currencies float freely. The only real reserve that is needed is gold. The most successful a country is (because of it's manufacturing or farming base) the more inflow of capital they will have because of it's exports. The free cash flow is then used to purchase gold by those who produce the most. If you dont produce much and offer no services then your kind of screwed but surely every country can come up with something to export.
In a system such as the one outlined above, the hardest hit in the US will be welfare recipients. They produce nothing and eat up tons of resources. Not sustainable by any means. Thus the reason I think they want the CBDC's. Print unlimited digits to keep the welfare digits flowing. to the unproductive. It also give government complete control of everything and there is virtually no-one that is not aware of this already. Going to be a tough sell except to the welfare class who would benefit. Full implementation is at least a decade out if not more and by then the US will be in full breakup more. At least breaking into 4 regions if not more.
It will depend on where they stand, in the economic picture.
The government will be poorer - it gets its ability to buy and give-away things, from CTRL+PRNT. Once that's gone, these reckless giveaways, contracts to oligarchs, pennies to the shiftless (especially irregular invaders) will be gone.
Those who depend on this fire-hose of fiat, will be empoverished.
Those who have dollars saved, will be impoverished. Most don't have them in notes or even bank ledgers, but in bonds and derivative instruments.
Those who have managed to live frugally, no matter how rudely, will survive.
Those who have marketable skills that do not depend on government edicts, social engineering, or make-work programs...will survive.
Those who saved their wealth outside the fiat-money system, will be ahead. BUT...danger, Will Robinson! The envious mobs REMAIN. I am hearing once again, talk of banning gold ownership - or at least ownership of bars or non-US-Mint coins.
We won't turn them in, but bartering with contraband will be hard. And costly. And I can see them requiring registration to trade in gold, to buy or sell it - and perhaps even tagging or serializing every bit of permitted gold out there.
THAT depends on the depths of poverty to which we fall. We get poor enough, and the power grid goes down. With it, the Internet of Everything. All the surveillance programs, the chips, the permits, the records, the algorithms...require power and computers, to work. And computers to be manufactured, as they have a service life.
If we're in the Leftist Agrarian fantasy, all of us living like Indians...nobody will be making computers, and the wires will be falling off the poles and pylons - long dead. Then, the nabobs of Imperial Washington can issue all the edicts they want, and it will change nothing.
For a young man with some access to non-dollar wealth, it could be an exciting, if dangerous, time.