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De-dollarization and Brics currency rise.


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2023 Feb 21, 12:53pm   18,063 views  250 comments

by indc   ➕follow (0)   💰tip   ignore  

https://www.youtube.com/watch?v=XGd-DvuEPfU

This is a 1hr video, but very good explanation of coming de-dollarization. Take sometime to listen to it.

I dont agree 100% with the points in the video but would like any financial experts thoughts about it.

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129   HeadSet   2024 Mar 12, 1:39pm  

UkraineIsTotallyFucked says

Did it claim that they didn't?

Yes.
130   DOGEWontAmountToShit   2024 Mar 12, 1:49pm  

HeadSet says


UkraineIsTotallyFucked says


Did it claim that they didn't?

Yes.



No, they did not.

They only mention Saudi as part of a international transaction example. No mention of Saudi Arabia not restricting - or restricting - anything.


131   HeadSet   2024 Mar 12, 2:35pm  

UkraineIsTotallyFucked says

They only mention Saudi as part of a international transaction example. No mention of Saudi Arabia not restricting - or restricting - anything.

Listen:


He directly says they need dollars to buy oil from Saudi. That makes sense because pricing oil in dollars had long been Saudi policy and why Biden went to Saudi Arabia last year to try and keep it that way.
https://geopoliticaleconomy.com/2023/08/10/us-saudi-arabia-sell-oil-dollars-chinese-yuan/
132   indc   2024 Mar 12, 3:43pm  

UkraineIsTotallyFucked says

Why does it matter? Many went under in 2009 and many will go under in the future. Businesses in the US go bankrupt all the time.

What does that have to do with the subject at hand? The Magical Bullshit that is BRICS having a currency that will supplant the dollar?


It matters because can kicking can have consequences. If other major economies do not buy treasuries and ignore dollar for most of their transactions then interest rates cant go low and USA economy will enter death spiral.
133   AD   2024 Mar 12, 4:23pm  

indc says

UkraineIsTotallyFucked says

Why does it matter? Many went under in 2009 and many will go under in the future. Businesses in the US go bankrupt all the time.

What does that have to do with the subject at hand? The Magical Bullshit that is BRICS having a currency that will supplant the dollar?

It matters because can kicking can have consequences. If other major economies do not buy treasuries and ignore dollar for most of their transactions then interest rates cant go low and USA economy will enter death spiral.


It all started around 2008 where the Federal Reserve can buy enough US Treasuries and mortgage backed securities to provide the needed demand to keep the 10 Year Treasury below 5%.

This helped with all that deficit spending during 2009 to 2012 as far as ZIRP.

Notice its hard to find the statistic of debt payment as a percentage of the total federal budget ? I think it was 8% in 2022.

Let's hope that US Treasuries don't go to krazy krazy next time around and the Federal Reserve can help keep the cost of borrowing money low for the federal government.

.
134   DOGEWontAmountToShit   2024 Mar 12, 9:06pm  

HeadSet says

He directly says they need dollars to buy oil from Saudi


Yes. That does not translate as Saudi only takes dollars.
135   DOGEWontAmountToShit   2024 Mar 12, 9:08pm  

indc says

It matters because can kicking can have consequences. If other major economies do not buy treasuries and ignore dollar for most of their transactions then interest rates cant go low and USA economy will enter death spiral.


That has nothing to do with WTF is happening in China regarding real estate developers. And it REALLY has nothing to do with US real estate developers that go bankrupt or not

What planet are you on?
136   komputodo   2024 Mar 12, 9:25pm  

UkraineIsTotallyFucked says

Not good. Russia tried to buy stuff from India with rupees they got from selling oil to them. The Indians but the brakes on that real quick.

Let that settle in: India doesn't even want their own money for exports they sell.

How do you convince someone to sell you their products for your pieces of paper (rupees) and then tell them that you won't accept those same pieces of paper (rupees) to buy their exports????
137   komputodo   2024 Mar 12, 9:30pm  

UkraineIsTotallyFucked says

Yes, eventually the US dollar will become toast too. But only after the Euro, Yen, etc. are totally fucked first. Between now and then, the dollar's value against those other currencies will soar.

really? when will it start soaring against MXN? its down about 15% since 2 years ago.
138   AD   2024 Mar 12, 9:35pm  

UkraineIsTotallyFucked says

indc says

It matters because can kicking can have consequences. If other major economies do not buy treasuries and ignore dollar for most of their transactions then interest rates cant go low and USA economy will enter death spiral.

That has nothing to do with WTF is happening in China regarding real estate developers. And it REALLY has nothing to do with US real estate developers that go bankrupt or not

What planet are you on?


INDC was posting about de-dollarization, which means foreign exchanges are not going to hold as many or any short term US Treauries which can be easily converted to dollars. They don't need to since the dollar won't be used as much for their international commerce.

So if they buy less US Treasuries then that reduces the demand, and likely causes US Treasury interest rates to increase to make them more attractive to the fewer foreign buyers.

All this does not matter Bubba, since 2008 the Federal Reserve has this role of being the buyer of US Treasuries via Quantitative Easing (QE).

Look at what The Wolfman at Wolf Street wrote, he says the floor or bottom is around $5 trillion for the Federal Reserve balance. sheet. He does not see them getting lower than that if they continue Quantitative Tightening (QT).

.
139   DOGEWontAmountToShit   2024 Mar 13, 12:44am  

AD says

INDC was posting about de-dollarization


WTF do real estate developers going out of biz have to do with any if this?

Nothing.
140   DOGEWontAmountToShit   2024 Mar 13, 12:52am  

AD says

to hold as many or any short term US Treauries which can be easily converted to dollars.


(Sigh)

Way more debt in dollars is not held by those the US owes or those that owe the US. It is held by foreigners who owe other foreigners.

That drives up demand for dollars. That in turn makes treasuries more valuable vis a vis their currencies and others.

Some are trying to find alternatives because they are losers who find it increasingly expensive to aquire dollars for that. But because of the above vicious cycle, they are pissing in the wind.

They also can not trade if the US Navy starts seizing or even sinking their shipping, should it come to being serious.
141   indc   2024 Mar 13, 9:41am  

UkraineIsTotallyFucked says

WTF do real estate developers going out of biz have to do with any if this?

Nothing.


It has everything to do with economics. Dollar was supreme because everyone was kicking the can. Now china is sending strong message no more kicking the can. They dont care what US is doing with its money. It will trade in its own currency. And stable currency is an attractive currency. The froth china created by being slave to US for 40 yrs will be completely destroyed before it will grow again with its own characteristics.
142   indc   2024 Mar 13, 9:42am  

UkraineIsTotallyFucked says

They also can not trade if the US Navy starts seizing or even sinking their shipping, should it come to being serious.


Can you guess why US is letting in so many illegals?
143   AD   2024 Mar 13, 1:31pm  

indc says

UkraineIsTotallyFucked says

They also can not trade if the US Navy starts seizing or even sinking their shipping, should it come to being serious.

Can you guess why US is letting in so many illegals?

.



.
144   Patrick   2024 Mar 13, 3:52pm  

UkraineIsTotallyFucked says

So the Russians fly cargo planes filled with gold to pay for things.


That's good news if so.

Of course it would be more efficient to have a trustworthy institution like the old Amsterdam Wisselbank, which could simply move gold around within its vaults.

https://www.beursgeschiedenis.nl/en/moment/the-bank-of-amsterdam/


With the sole option of using coins, it was physically difficult to complete share transactions that involved several thousands of guilders. Therefore, every exchange trader that mattered had an account at the Wisselbank. The Wisselbank introduced a book-entry system that enabled customers to settle payments with other account holders. ...

The customers of the bank felt secure about the fact that their capital was being kept in the basement of the city hall and that the city of Amsterdam guaranteed their assets. The former entrance of the Wisselbank in the old city hall on the Dam Square – the current palace – is still marked by an image of Mercury, the Roman god of trade.

Partly because of the Wisselbank, that would continue to exist until 1820, Amsterdam could develop into a global financial center.
145   DOGEWontAmountToShit   2024 Mar 13, 9:21pm  

indc says

Can you guess why US is letting in so many illegals?


Why bother?
146   Blue   2024 Mar 13, 11:06pm  

indc says

Can you guess why US is letting in so many illegals?

Not sure what is happening. Look the "news",
https://www.businessinsider.com/undocumented-immigration-us-recession-outlook-job-market-economy-soft-landing-2024-3?op=1
147   DOGEWontAmountToShit   2024 Mar 14, 9:53am  

Blue says

Not sure what is happening. Look the "news",
https://www.businessinsider.com/undocumented-immigration-us-recession-outlook-job-market-economy-soft-landing-2024-3?op=1


What does this have to do with the subject of the Bullshit That Is BRICS De-dollarization?
148   indc   2024 Mar 14, 12:40pm  

UkraineIsTotallyFucked says

What does this have to do with the subject of the Bullshit That Is BRICS De-dollarization?


I guess no one knows why US is allowing so many illegals.
In future there will be silos, each country will have its own sphere of influence. They will trade within that sphere mostly. Hence they will not need dollars.

Why US needs the illegals. It needs them because citizens will not be willing to work for pennies as they have many defined benefits which will force them not to work for "free".

Without this labor US cannot make affordable products as it was importing them before. Now because of de-dollarization US has to make its own products for its consumption.

And with money being tight US will not have much money to spend towards defense.
149   DOGEWontAmountToShit   2024 Mar 14, 1:44pm  

indc says

guess no one knows why US is allowing so many illegals.
In future there will be silos, each country will have its own sphere of influence. They will trade within that sphere mostly. Hence they will not need dollars.

Why US needs the illegals. It needs them because citizens will not be willing to work for pennies as they have many defined benefits which will force them not to work for "free".

Without this labor US cannot make affordable products as it was importing them before. Now because of de-dollarization US has to make its own products for its consumption.

And with money being tight US will not have much money to spend towards defense.


Don't do drugs and post on PatNet at the same time.
150   indc   2024 Mar 14, 1:51pm  

UkraineIsTotallyFucked says

Don't do drugs and post on PatNet at the same time.


I appreciate you keeping this thread active. We dont know the future, but that is what the person in video is saying now.

All I am saying is be better prepared.
151   AD   2024 Mar 14, 3:19pm  

UkraineIsTotallyFucked says

indc says

guess no one knows why US is allowing so many illegals.
In future there will be silos, each country will have its own sphere of influence. They will trade within that sphere mostly. Hence they will not need dollars.

Why US needs the illegals. It needs them because citizens will not be willing to work for pennies as they have many defined benefits which will force them not to work for "free".

Without this labor US cannot make affordable products as it was importing them before. Now because of de-dollarization US has to make its own products for its consumption.

And with money being tight US will not have much money to spend towards defense.

Don't do drugs and post on PatNet at the same time.


Please tell me you are being coy as far as pretending the RINO's or Chamber of Commerce/Country Club Republicans are not supportive of an open border.

DaSantis is trying in Florida going after these bubba home builders and contractors hiring day workers who look like they could be extra's in Mel Gibson's Apocalypto.

My favorite sheriff Frank McKeithen (alias "Saint Frank") use to have his deputies park outside the high rises being built on the beach with their lights on.

That would cause at least 3/4 of the workforce at those sites to scatter like cockroaches. You ain't lucky unless you have a sheriff like Saint Frank.

The problem was the fucktard soy boy, white liberal media started to report this because it was too effective:

https://www.eastbaytimes.com/2007/06/28/florida-sheriff-targets-illegals-at-building-sites/

That is what they do, as you know you are a threat if they start giving you media coverage.

.
152   AD   2024 Mar 14, 3:23pm  

UkraineIsTotallyFucked says

indc says

guess no one knows why US is allowing so many illegals.
In future there will be silos, each country will have its own sphere of influence. They will trade within that sphere mostly. Hence they will not need dollars.


I'm not sure if international trade will completely shut down. It may be a lot less as far as percentage of GDP as for example, the economy of exchanging goods and services transforms due to new technology and methods such as 3-D printing, etc.

Look at how just the US Postal Service was impacted by the Internet compared to the size of its workforce over the last 20 years. Population is increasing, yet the post office workforce has shrunk, albeit with some help from technology like auto mail sorters.

.
153   indc   2024 Mar 14, 4:28pm  

AD says

I'm not sure if international trade will completely shut down.


I am not saying trade will shut down. It will not happen in dollars anymore. Trade will mostly happen within the sphere of influence.

China will work with East-Asian countries.
India will work with Indian Ocean countries.
African countries will work within the continent.
Same for South America.
Russia will work with Asian countries and maybe with Europe.
America and European countries will work closely which is same as now.

And dollar usage will drastically come down.
154   AD   2024 Mar 14, 4:52pm  

indc says

America and European countries will work closely which is same as now.

And dollar usage will drastically come down.


Okay just like what is happening now and I'll give credit to Biden as far as electronic manufacturing investments in the USA.

What does that mean for standard of living or quality of life in the USA ?

.
155   The_Deplorable   2024 Mar 14, 5:27pm  

indc says
"Can you guess why US is letting in so many illegals?"

Yes. The Uniparty wants them to vote in November.
157   indc   2024 Mar 15, 9:06am  

UkraineIsTotallyFucked says


Don't do drugs and post on PatNet at the same time.


@UkraineTotallyFucked

https://twitter.com/MarioNawfal/status/1768579446221496773

TYSON FOODS HIRES ILLEGAL IMMIGRANTS WHILE LAYING OFF U.S WORKERS

-------------------------------------------------------------------------------

This will happen more often after the elections.
158   DOGEWontAmountToShit   2024 Mar 15, 9:46am  

indc says

UkraineTotallyFucked

https://twitter.com/MarioNawfal/status/1768579446221496773

TYSON FOODS HIRES ILLEGAL IMMIGRANTS WHILE LAYING OFF U.S WORKERS


So?

What does this have to do with BRICS and the bullshit thereof?

Nothing.

Same for real estate developers going bankrupt.
159   indc   2024 Mar 15, 11:58am  

AD says

Okay just like what is happening now and I'll give credit to Biden as far as electronic manufacturing investments in the USA

What does that mean for standard of living or quality of life in the USA ?


https://twitter.com/RnaudBertrand/status/1768064540007404016
US re-industrialisation update: Samsung, LG, SK, all in the process of building semiconductors and battery factories in the US, "suspend US construction projects" amid labor and construction costs "rising at alarming pace".
------------------------------------------------------------------------------------------------------------------------------------------------------------------
As you can see just because you bring back manufacturing with subsidies nothing will happen as long as labor costs are not managed.
And that cannot happen unless standard of living and quality of life are compromised.
160   indc   2024 Mar 15, 12:03pm  

UkraineIsTotallyFucked says

So?

What does this have to do with BRICS and the bullshit thereof?

Nothing.

Same for real estate developers going bankrupt.


I agree you cant see how it leads to de-dollarization with this limited information. But if you see the progression of these events it will lead to no more can-kicking and hence de-dollarization.

You agree that interest rates will not go down, in a way that will also lead to de-dollarization.
161   DOGEWontAmountToShit   2024 Mar 15, 3:04pm  

indc says

But if you see the progression of these events it will lead to no more can-kicking and hence de-dollarization.


No. It does not.indc says

You agree that interest rates will not go down, in a way that will also lead to de-dollarization.


Nope. The opposite. Demand for dollars will rise.
162   AD   2024 Mar 15, 3:37pm  

UkraineIsTotallyFucked says

Nope. The opposite. Demand for dollars will rise.


You mean that if the 10 Year Treasury is paying at least 2% greater than the government-reported annual inflation such as PCE, then it will mean there will be more demand for "dollars" as in 10 Year Treasuries ?

.
163   AD   2024 Mar 15, 3:39pm  

.

I remember from personal finance classes that you want to earn 4% plus annual inflation. So if annual inflation steadies at 3%, then you need to earn 7%.

This is based on premise you deduct around 3.5% a year as like an annuity and want your savings to appreciate at least at the rate of annual inflation.

Vanguard has a fund like Lifestrategy Conservative Growth Fund (60 bond/40 stocks) for this type of circumstance.

.
164   Misc   2024 Mar 15, 4:00pm  

AD says


.

I remember from personal finance classes that you want to earn 4% plus annual inflation. So if annual inflation steadies at 3%, then you need to earn 7%.

This is based on premise you deduct around 3.5% a year as like an annuity and want your savings to appreciate at least at the rate of annual inflation.

Vanguard has a fund like Lifestrategy Conservative Growth Fund (60 bond/40 stocks) for this type of circumstance.

.


10 year Total rate of return on it is 4.68%. CPI increase has been 2.65% over the last 10 years. Puts the inflation adjusted @ about 2%, and that is with the stock market at an all time high. Better have it in an IRA or it sucks even more after taxes.

https://investor.vanguard.com/investment-products/mutual-funds/profile/vscgx#performance-fees

There is no fire and forget strategy. No matter what the investment companies say, you gotta try to time the market.

If you would've dollar cost averaged either into or out of it, the total return figures are also lower.
165   AD   2024 Mar 15, 7:38pm  

Misc says

10 year Total rate of return on it is 4.68%. CPI increase has been 2.65% over the last 10 years. Puts the inflation adjusted about 2%, and that is with the stock market at an all time high. Better have it in an IRA or it sucks even more after taxes.

https://investor.vanguard.com/investment-products/mutual-funds/profile/vscgx#performance-fees


Yes, because its bonds are essentially indexed to Vanguard's Total Bond Market ETF (ticker: BND), which obviously got its ass kicked when the Fed Funds rate went from 0.25% to 5.5% in about 12 months because inflation spiked to around 9%.

And since it apply a bond ladder strategy, the bond fund should recover after getting over the shock of inflation jumping that fast.

I would go back 25 years with this one. But its meant to be a safe way such as for a senior citizen to invest.

.
166   Misc   2024 Mar 15, 8:16pm  

IMHO the best investment people could have made was refinancing their 30 year fixed rate mortgage at under a 3% rate.

That simple deal outperformed pretty much every money manager out there, and most people did that with a huge percentage of their net wealth. Timing is everything. That and being given the opportunity.

I can see why Gen Z is clutching at straws like crypto, they have very little to invest in. Lots to speculate on, but nothing to invest in. At least their student loan rates are at about 1.5%. Kids looking at college now...about 5.5% on their student loans with no increase in salary compared to previous generations.

So for those just starting out, I don't know how much of a difference between them and someone starting out in a BRICS country there is.
167   DOGEWontAmountToShit   2024 Mar 15, 8:41pm  

AD says

You mean that if the 10 Year Treasury is paying at least 2% greater than the government-reported annual inflation such as PCE, then it will mean there will be more demand for "dollars" as in 10 Year Treasuries ?


I mean when interest rates go up period. Not limited to just the interest paid on Ts.

Commercial bonds (not involving RE obviously), CDs, mortgages, car loans, state and local, etc. And interest paid on dollar denominated paper foreigners have amongst each other in the eurodollar arena especially.

The entire kitchen sink.

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