Whenever Xi Jinping makes a visit to a foreign country he clearly has an interest in that visit and recently the so-called "elected president" of China has been traveling to different countries, UAE and Russia being two of the most noteworthy ones.
While some believed that the Chinese communist leader went to Russia for a "peace treaty" regarding the Ukraine war, that wasn't actually the case. As it appears, Xi Jinping spent a couple of days in Russia just to "declare his friendship to Putin" and push the current process of dedollarizing the world economy forward while ensuring that the yuan is a viable candidate to replace the dollar in some of the current commodity trades.
By no means do I consider that the US dollar shall be "excluded from most of the international trades", or the global economy, but as we can clearly see it is gradually losing its grip over the most important international trades and the ability to "enforce sanctions"(the exact "powers" that gave it power). Russia is now probably the most sanctioned country in the world and in the midst of all of that Putin decided to accept trading Russian oil in yuan instead of the dollar.
While some of us might be looking at an end of fossil fuel use in the years to come and hoping for a quick transition toward renewable energy it seems that the demand for fossil fuels remains high. As a matter of fact, it was announced recently that the Referendum on whether to make Germany's capital Berlin "climate neutral" by 2030 has failed.
About a day ago I wrote a post about the threat that the Chinese yuan poses to the dollar and how the current episode in this play can also act as a defacto mechanism for pushing CBDCs "into production" globally. By no means do I believe that we will have a one-world-accepted currency, I guess that's crystal clear for everyone, but what I clearly foresee is the functioning principles of such a currency(programmable money) that will be pretty much the same in every country.
Saudi Arabia is importing huge amounts of diesel from Russia, despite producing more than enough of its own, and reportedly sending much of it to Europe, per Bloomberg. If that above-mentioned diesel is currently traded for US dollars I bet the Arabs will soon change the exchange currency from dollaz to yuans. Do you know why?
It's all over the news, you just have to connect the dots... Here's why...
What will the US will be left with once all major commodity traders switch from dollars to yuan(or whatever)? Well, its wars and a lot of hate... Moreover, "in the past year, Argentina, Indonesia, Saudi Arabia, Iran, Mexico, Turkey, the United Arab Emirates (UAE), and Egypt have either applied to join or expressed an interest in joining BRICS".
And I'm not over yet with my case... "Russia and India agree to trade oil for rupees, Russia being now India’s largest oil supplier, with 35% of that massive, growing country’s imports". Want more? Brazil and Argentina announce a common currency... Hmmm, something's happening.
My take is that India is not only just nailing a great deal on Russian oil(rumors are they're buying it with the equivalent of $50 per barrel) while they are using rupees for such trades, but some of it might end in Europe at a higher price thus making India profits. Cuz Europe is dumb and obedient as fuck and it follows the US blindly, especially when it comes to imposing sanctions.
Who's paying for these useless sanctions imposed by the US and the EU on Russia? You and I, taxpayers and consumers. So, in a conclusion, we are now witnessing the rise of a multipolar world and the fall of the dollar as a reserve currency.
Oil and gas are noteworthy commodities that have been so far transacted mostly in dollars and the reason why the US has invaded so many countries over decades since it established itself as an empire. Remember Iraq(free the Iraqis) in 2003(I guess)? It came literally days after Saddam announced he will be selling oil for Euros instead of dollars. Bush couldn't accept it so he sent Iraqis some bombs to "free them".
What is the US going to do now to defend the dollar? Invade UAE, Russia, China, or India? It can't... So, what's next?
Americans will probably have to prepare themselves for some insane inflation numbers in the years to come when all the dollar liquidity from the global economy gets back home. And yeah, the American empire looks to be shaking lately. Too bad it's the working people paying for all the shit the elites have indulged in for so many years... Sad indeed.
Thanks for your attention,
Adrian
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The European economy was told to commit suicide amidst the Ukraine conflict, and they voluntarily committed suicide.
USD will remain relevant in international trade, but going forward, it will not be the only option for international trade, thanks to the sanction and weaponization of USD by the USA. Saudi Arabia joining BRICS will be a game changer, if BRICS successfully introduces a commodity-backed pegged currency, then it will embark on a new epoch of multilateralism. USD has been the king until now because it is being able to export inflation to the rest of the world. With a new commodity-backed pegged currency coming from BRICS, the foreign reserves of the rest of the world no longer will have to keep their reserve in USD only. And that is how the monopoly and weaponization of USD will end.
Exactly. At that time Libya and Iraq were too small to oppose the US hegemon. But the creation of the Euro was the first ever de-dollarization event, and we all knew that led to the dot com bubble. What will happen in the next mega de-dollarisation event, this time even the deep state of the US wants to kill the dollar. There are enough hints if we closely follow the developments. Apart from that there is an unofficial agreement in Asia and Africa to look for an alternative other than the dollar in global trade, things will take time, but it's happening and no one is making rhetoric of the same, but doing it in subtle way. By 2030, we will see these things materializing on its own.
The deep state might use this dedollarizaton process to push CBDCs into production.
Very good post. The way I see it is that the US made two key mistakes (well, two among many).
First, they printed insane amounts of dollars over the last decade or so, spiking with the need to cover the cost of Covid, but before that to fund the forever wars.
Second, by cutting Russia off from SWIFT and freezing Russian (and before that Venezuelan) foreign reserves held in dollars with the likelihood that they will never be returned, they demonstrated that the dollar cannot be relied on as a safe way for countries to store funds.
I wonder if BTC or some other crypto could end up being the bridge between the separate financial systems of the US/UK/EU world and the BRICS/SCO one.
I doubt they will opt for BTC. BTC is for us not for them.
Once the US Dollar is dethroned as reserve currency and nations of the world are using a mix of yuan, rubles, rupees, Euros and USD and whatever else, then the nations and markets will realise that this is very inefficient and that a neutral global reserve currency, controlled by no-one and not able to be weaponised is needed.
See if you can guess what that will be.. TC.
I hope not some damn CBDC...
No, in a multi-polar world no national currency can be the global reserve currency, it has to be something neutral and universal like gold or BTC.
I would be fine with BTC, but as I wrote in my latest post the hints are that CBDCs are going to be these new reserve currencies we shall have in the future.
https://leofinance.io/threads/@acesontop/re-leothreads-5rkjec
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Hmm, the tide is changing faster than I would have expected for the USD. Looks like the game is about to change. Damn, what a bad time to live in Europe!
It was always a bad time :))
Lol, I think you are right.
In the past, there were countries that tried to escape the grip of the dollar alone, and they were easily dealt with. Now we have multiple countries announcing dropping the dollar in unison, often with the support of China, so there's not much America can do.
This time we have strong countries doing that.
This is very informative. Anyway, I still believe that it will be very hard to chase away the dollar from the world market.
Even if it may happen, it will take nothing less than ten years.
Partially it will be replaced by other currencies.