patrick.net

RWSGFY says

Zeihan is laughing at the whole covfefe:

what is a covfefe?

komputodo says

RWSGFY says

Zeihan is laughing at the whole covfefe:

what is a covfefe?

https://en.wikipedia.org/wiki/Covfefe?wprov=sfti1

There is about 15 trillion in dollar denominated, foreign, debt outstanding.

Good luck replacing that with anything.

RWSGFY says

komputodo says

RWSGFY says

Zeihan is laughing at the whole covfefe:

what is a covfefe?

https://en.wikipedia.org/wiki/Covfefe?wprov=sfti1

It says covfefe is a nonsense word. It has no meaning. Is it your standard practice to use meaningless, nonsense words in your posts?

The_Deplorable says

The source of the data is not PPP. The source of the data is the IMF - World Economic Forum. And the data show that the BRICS GDP exceeds the GDP of the G7.

Trollhole says

"So?"

The G7 is increasingly becoming irrelevant and highlights the fact that this is no longer a unipolar world.

So?

As in SO FUCKING WHAT?

As in: So fucking what what you or anybody else bitches about G7 this or G7 that.

Show me where this alternative reserve currency is that is replacing the dollar. No?

Then the entire point of this thread is still bullshit.

QED

indc says

Trollhole says

What a load of crap.

https://www.rt.com/news/582934-blinken-post-cold-war-order/?ysclid=lmjhnviht7774842269

The Old World Order is over – Blinken

What another load of crap.

I don't think 'indc' actually read the article. RT propagandists usually do a better job than this. They usually at least get the name of universities and the city they are based out of correct. The article seems free-form propaganda totally made up, along with the quotes. I guess the author was under a deadline and had been drinking too much vodka.

Misc says

I don't think 'indc' actually read the article

Yup. He's not the only one on PatNet who does that.

Not to mention that article doesn't prove the dollar is toast as the world's reserve currency.

Trollhole says

What another load of crap.

Trollhole says

Not to mention that article doesn't prove the dollar is toast as the world's reserve currency.

Did I say dollar is toast? De-dollarisation doesn't mean dollar is toast. It will get weaker. And eventually loose its prominence.

indc says

Did I say dollar is toast? De-dollarisation doesn't mean dollar is toast. It will get we

Nice bullshit spin to redefine what I said into a BS strawman. Too bad you just got caught.

Definition of de-dollarization:

dollar is toast as the world's reserve currency

dollar is toast as the world's reserve currency

dollar is toast as the world's reserve currency

And that is exactly what I said.

And that is what you and anybody else who push the de-dollarization BS are saying too.

Which is why you deliberately cut out the as the world's reserve currency part to spin things otherwise.

Trollhole says

dollar is toast as the world's reserve currency

Just because you make up a definition it doesn't mean you are correct.

Here is the definition from google.
De-dollarization describes a process of moving away from the world's reliance on the U.S. dollar (USD) as the chief reserve currency.

My suggestion you stress on 'chief'.

indc says

Just because you make up a definition it doesn't mean you are correct.

Sorry. But that was the definition I used. You then blatantly altered it to infer I said something I did not.

You can disagree with that definition. But you didn't.

You can not take other people's words, alter them and then BS with it afterwords. Oh, and then get caught and try to bullshit your way out of it.

That is what you did.

indc says

My suggestion you stress on 'chief'.

Why? It's just there for woke inclusiveness.

There is no chief reserve currency. There is just THE world reserve currency.

Hell, even Wkipedia has that one figured out:

Dedollarisation refers to countries reducing reliance on the U.S. dollar as a reserve currency, medium of exchange or as a unit of account.[1]

No 'chief' bullshit.

Trollhole says

indc says

Trollhole says

What a load of crap.

https://www.rt.com/news/582934-blinken-post-cold-war-order/?ysclid=lmjhnviht7774842269

The Old World Order is over – Blinken

What another load of crap.

It's Russia Today, what did you expect - wisdom
and truth? LOL

Trollhole says

No 'chief' bullshit.

Do you know the meaning of "chief"?

The USA is going to have to be less dependent on imports especially oil as it make require more dollars to purchase the same imports

We need to become more sustainable and learn to not be as much a throw away society. I am thankful for learning about Ubuntu here and to continue to use my 5 year old HP desktop (Windows 10) using Ubuntu. It runs smooth like its Apple OS.

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indc says

Do you know the meaning of "chief"?

Yeah. As in, it has no meaning here.

You're just trolling. And bad at that, too.

Trollhole says

Not to mention that article doesn't prove the dollar is toast as the world's reserve currency.

why does the world need a reserve currency? why does the world need to use a currency that only 1 country can print without limit? why does the world need to sell their merchandise for paper that is just printed out of thin air?

komputodo says

why does the world need to sell their merchandise for paper that is just printed out of thin air?

Why do you sell your labor for paper that is printed out of 'thin air'? Why do your creditors accept that paper? Why does the dude running a hit dog stand sell his merchandise for it?

Why even ask this question?

komputodo says

why does the world need a reserve currency? why does the world need to use a currency that only 1 country can print without limit? why does the world need to sell their merchandise for paper that is just printed out of thin air?

There has to be a medium of exchange if there is no bartering. So what currency is used ?

If an importer in Brazil wants to buy a container of Chinese made laptop computers, then how do they pay for them based on what they are worth to both the seller and buyer ? Is it in Chinese currency or Brazilian currency ?

If they buy in US dollars, then they have to have access to US dollars such as in a savings account. Most who do this, keep US dollars saved in Treasuries like 1 year (or less) US Treasury notes. So if they have less need to US dollars, then they will not buy as much US Treasury assets like bills and notes.

I remember bitcoin being considered a medium of exchange such as for buying homes, but price volatility of bitcoin made it not as viable.

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Trollhole says

komputodo says

why does the world need to sell their merchandise for paper that is just printed out of thin air?

Why do you sell your labor for paper that is printed out of 'thin air'? Why do your creditors accept that paper? Why does the dude running a hit dog stand sell his merchandise for it?

Why even ask this question?

First of all, this post is about reserve currency, not fiat money. If I live outside the US, I can accept a different fiat currency for my labor. I don't have to accept US dollars.

ad says

There has to be a medium of exchange if there is no bartering. So what currency is used ?

If an importer in Brazil wants to buy a container of Chinese made laptop computers, then how do they pay for them based on what they are worth to both the seller and buyer ? Is it in Chinese currency or Brazilian currency ?

In this instance, the chinese central bank would set the currency exchange rate for the Brazilian Real v. Chinese yuan. Now the Brazilian can pay for the laptops with his domestic currency. Therefore cutting the us dollar out of the deal.

komputodo says

In this instance, the chinese central bank would set the currency exchange rate for the Brazilian Real v. Chinese yuan. Now the Brazilian can pay for the laptops with his domestic currency. Therefore cutting the us dollar out of the deal.

Okay, so the Chinese would want to get paid in Brazilian Real.

The concern is the stability of the currency so if they get a X amount of Real, then the value of it will remain stable between when the deal is being negotiated and when payment in Real is received.

I guess having everything priced in US dollars is just convenient as far as processing import and export transactions. It consolidates instead of having many currency exchanges (Real to Yuan).

The BRICs don't own a lot of US Treasury assets and are not buying them as much compared to non-BRIC countries so I don't think its going to cause a major drop in demand for US Treasuries.

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ad says

I guess having everything priced in US dollars is just convenient as far as processing import and export transactions. It consolidates instead of having many currency exchanges (Real to Yuan).

yeah it's convenient until you upset the usa and they confiscate your US assets....financial and physical.

komputodo says

yeah it's convenient until you upset the usa and they confiscate your US assets....financial and physical.

Its does not matter as a large majority of the purchases of US Treauries are from non BRICs and US investors.

They are not being seized for your political strawman reason.

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ad says

Its does not matter as a large majority of the purchases of US Treauries are from non BRICs and US investors.

It may have once been like that but lately the main buyers have been china, saudi arabia...BRICS MEMBERS, and the federal reserve bank as buyer of last resort. Which is kinda funny...the fed create money, then loan it with interest to the usa treasury to sell treasuries back to them.

komputodo says

It may have once been like that but lately the main buyers have been china, saudi arabia...BRICS MEMBERS, and the federal reserve bank as buyer of last resort. Which is kinda funny...the fed create money, then loan it with interest to the usa treasury to sell treasuries back to them.

That is not true. The main buyers of US Treasuries are not these countries. Again, China has been reducing its holdings of US Treasuries and Saudi Arabia is not even in the top 10 for US Treasury asset owners.

The foreign ownership of US Treasuries is about $7.4 trillion and there are a total of approximately $25 trillion in outstanding US Treasuries.

https://ticdata.treasury.gov/Publish/mfh.txt

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komputodo says

First of all, this post is about reserve currency, not fiat money.

You brought up the fiat stuff, not me

?????

ad says

I guess having everything priced in US dollars is just convenient as far as processing import and export transactions. It consolidates instead of having many currency exchanges (Real to Yuan).

also consider that major holders of USD are countries that are forced to buy oil priced in USD. If they weren't forced by the usa to buy oil with dollars, they probably wouldn't be holding so many.

komputodo says

also consider that major holders of USD are countries that are forced to buy oil priced in USD. If they weren't forced by the usa to buy oil with dollars, they probably wouldn't be holding so many.

yes, but again the BRIC countries are not major holders of US Treasuries

and foreign ownership of US Treasuries is only about $7.4 trillion out of $25 trillion

and a vast majority of those holding the US Treasuries are Japan and other ally countries like Cayman Islands

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ad says

and a vast majority of those holding the US Treasuries are Japan and other ally countries like Cayman Islands

Cayman's are just a eurodollar holder for other players. The entire eurodollar market is for non-US holders of dollars that can be transacted with others likewise.

Same for treasuries, I suppose. Although the big boys hold them directly as you note.

ad says

komputodo says

also consider that major holders of USD are countries that are forced to buy oil priced in USD. If they weren't forced by the usa to buy oil with dollars, they probably wouldn't be holding so many.

yes, but again the BRIC countries are not major holders of US Treasuries

and foreign ownership of US Treasuries is only about $7.4 trillion out of $25 trillion

and a vast majority of those holding the US Treasuries are Japan and other ally countries like Cayman Islands

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Japan's official stash of $1.11 trillion represents 4.4% of the total market, also a record low, while China's $835 billion stash is around 3.4% of the total, the lowest in over 20 years. In contrast, the Federal Reserve holds $5 trillion, or 20% of the overall market.

Dollar, the best looking horse in glue factory and all that. Perhaps it belongs to prediction thread but I do not see another currency which will be as convenient as USD for international transactions. And I would trust Chinese or Russian government even less than US gubbermint with respect to asset confiscations.

komputodo says

Japan's official stash of $1.11 trillion represents 4.4% of the total market, also a record low, while China's $835 billion stash is around 3.4% of the total, the lowest in over 20 years. In contrast, the Federal Reserve holds $5 trillion, or 20% of the overall market.

Yes, as I was referring to the vast majority of the foreign holdings are non-BRICs. Japan is one example, as well as other countries like Grand Cayman.

Yes, its called financial engineering as far as how the Fed has operated since 2009 with quantitative easing (QE). Look at how they bought mortgage backed securities to prop up the housing market.

All the stimulus money (especially third or fourth round with Birdbrain Biden) as well as QE and ZIRP (zero interest rate policy) has finally caused the chickens to come home to roost.

I hope no later than next summer that PCE and CPI are steady and below 0.3% monthly increase and below 3.25% annual increase, and the Fed keeps the Fed Funds rate at or below 5.5%.

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I could see places like Lebanon, Argentina, Zimbabwe, etc adopting the US Dollar.

Soo, the Cretin of Kremlin sold his oil to India to the tune of $38B. Is there a problem? Yes, there is: he sold all that oil not for actual $38B but for $38B worth of Rupees which he can't convert to anything else and can't spend anywhere outside India. Except he doesn't want or need anything India has to offer and India doesn't offer anything he wants/needs. Seeing his conundrum Indians have graciously offered to allow the Cretin of Kremlin to invest in some Indian companies and at least get some dividends.... drumroll.... in Rupees!

Hooray for BRICS!!! Hooray for de-dollarisation!!!

Yup. Exactly right, Eric Holder.

Same problems arise with the Brazillian real, Chinese yuan (although in that case the Chinese simply refused to redeem for the Russians) and South African rand.

https://www.politico.eu/article/india-has-russia-kremlin-over-crude-oil-barrel/

How about that, @indc the Indian rupee isn't even worth much to desperate Russians. Can still be used as toilet paper when Indians squat beside the road tho, I am sure.

@komputudo ^^one of the reasons why the world needs a reserve currency. Doesn't HAVE to be the dollar, technically. But any decent level of global trade requires one.

Trollhole says

Doesn't HAVE to be the dollar, technically.

But it will need a deep well of liquidity and a large bond market like uhhh, we have.

just_passing_through says

But it will need a deep well of liquidity and a large bond market like uhhh, we have.

Bingo! And don't forget non-bond assets, like R/E.

This was why the Japanese were buying up golf courses, most of Hawai, Rockefeller Centre, etc, Then 15 years later, it was the Chinese.

UK, Canada and Oz/NZ are next up, pretty much in that order. But Canada recently started to limit foreign R/E purchases and NZ stopped it about 5 years ago.

Europe was on track until around 2008 when they raided foreign deposits in a Cypress bank to bail out the European owners. Until then, the euro was on track to at least challenge the dollar for reserve currency status.

Eric Holder says

allow the Cretin of Kremlin to invest in some Indian companies and at least get some dividends

They can invest in companies that export to Russia like electronic equipment, machinery, and fruits and vegetables.

https://tradingeconomics.com/india/exports/russia

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