Time to abandon U.S. dollar as a medium of world trade

[Nein]

About time the dollar gets abandoned

 

[ARMalik]

I have said this plenty of times here and specially to our Chinese members - China is the 2nd largest economy of the World and unlike other nations, had the luxury of time to create an Alternative Monetary system. BUT IT DID NOT DO ANYTHING DELIBERATELY because it does not want to change the existing Capitalist system. In fact the very fundamentals of the Capitalist system actually compliments the Chinese society which to its foundations discriminates between a Rich person and a Poor person. The Rich becomes increasingly rich in a Capitalist system, and the poor become poorer. One example, just go to Hong Kong and just look at what is happening to ordinary people there. People over 70 years old are sleeping in the streets or living in miserable conditions.

So I am sorry to burst everyone's bubble, but China will NEVER get rid of the US dollar because it is in LOVE with the US Dollar and the US Capitalist system.

 

[Reddington]

I have said this plenty of times here and specially to our Chinese members - China is the 2nd largest economy of the World and unlike other nations, had the luxury of time to create an Alternative Monetary system. BUT IT DID NOT DO ANYTHING DELIBERATELY because it does not want to change the existing Capitalist system. In fact the very fundamentals of the Capitalist system actually compliments the Chinese society which to its foundations discriminates between a Rich person and a Poor person. The Rich becomes increasingly rich in a Capitalist system, and the poor become poorer. One example, just go to Hong Kong and just look at what is happening to ordinary people there. People over 70 years old are sleeping in the streets or living in miserable conditions.

So I am sorry to burst everyone's bubble, but China will NEVER get rid of the US dollar because it is in LOVE with the US Dollar and the US Capitalist system.

China won't change the status quo because a strong Dollar and weak Yuan serves its economy. That's why USA accuses China of currency manipulation and keeping Yuan artificially low. On top of that, China buys USA treasury bonds to keep Dollar strong when Dollar becomes weak.

A strong Dollar and weak Yuan would mean exports of China would be cheap. Think about it. When you are a nation of 1.4 billion people, you need jobs. Weak Yuan means cheap exports meaning more and more exports which results in 1.4 billion people well fed.

 

[Mista]

Weak Yuan means cheap exports meaning more and more exports which results in 1.4 billion people well fed.

Not necessarily.

Look at it this way. Simple earning money doesn't mean you're 'well-fed', you have to spend the money to enjoy what you have earned. Devaluing your currency may earn you more foreign money but it also diminishes the foreign purchasing power of the people. To be 'well-fed', you have to spend and import otherwise it's just a piece of paper.

And at the end of the day the value of that paper is determined by the US Fed which can print money at will. Simply put, the larger the China's trade surplus with the US, the more China is reliant on the USD system. China is actually contributing significantly to the dominance of the USD.

 

[Pandora]

Barter/Gold should be used to avoid sanctions.

Gold is a very limited commodity. If demand of Gold is to go up then it will wreck havoc across the globe where countries with most Gold will monopolise its flow just as US is monopolising dollars.

https://www.forbes.com/sites/greats...ries-with-largest-gold-reserves/#74ac05215334

Just have a look at who is hoarding most gold in the world and then compare it with who is hoarding most dollar reserves. It will be like replacing on dependency to the other.

FYI Us holds about 75% of its reserves in gold.

If you want a want of system with least monopoly then go for bartering system not Gold or any other kind of currency.

 

[VCheng]

Aaah...Another 'drop the dollar' US collapse thread.

It was overdue anyway.

 

[James David]

It was overdue anyway.

Grandpa @VCheng dont make me hate you!!!

 

[VCheng]

Grandpa @VCheng dont make me hate you!!!

Welcome back! Long time no see. Where have you been?

 

[James David]

Welcome back! Long time no see. Where have you been?

It's 7am buddy time to go to work as usual. I was on holiday in Thailand and the PI for 30 or so days. You at the Big Apple right? A little chilly 51 brrrrr.. I need a coffee!

 

[mike2000 is back]

China should take the initiative. Import from your trading partners in massive quantities and forward them Yuan Based Loans, So that Yuan Reserves build up and yuan gets into circulation and then Accept Yuan as payment for Chinese Exports. This circle will take time but after some time there will be dollar free trade in many regions.
Will China take this step?
As for Gold Titanium standards advocates. It is not possible in modern economics. Please look into economics more.
USA don't decide what is the value of your currency against USD. Its your government that decides the price of your currency against USD depending on the level of Imports (Demand for Dollar as your local manufacturer will want to buy Dollars to pay the supplier of the other country) and Exports (Supply of Dollar as your industrialist will encash the dollar received by him by exports from national reserves as dollar will be of no value inside Pakistan).
When their will be more supply of dollar i.e more exports/foreign Remittances Government will decide the Reduce Dollar rate wrt to Rupee and when Demand of Dollar will rise Dollar will be made more expensive as keeping dollar cheap in high demand time will diminish dollar reserves.

And Countries like China, Japan and EU are the biggest benefactors of Dollar Trade. They will never let it collapse. Pakistanis want to abandon dollar because they are in dire economic situation. If per say We become developed. And our Exports become way more then Imports and our Dollar Reserves grow exponentially and so dollar value comes down and you can buy the best products, services and industrial machinery from the world the way you like , Will any of you talk about abandoning dollar? Imagine if you can afford a Luxury German made car in the purchasing power of a Suzuki Cultus will you still proclaim Dollar Abandonement and adopt some obscure currency that no one accept?
Soviet Union Tried it and they are a history now. We need to ramp up our industrial output before making such statements

Why is it that people don’t ask themselves why China as you said hasn’t adopted the measures you said in other to make the dollar lose its current reserve status?
Seems people on here are just indulging in wishful thinking due to their hostile view of the U.S( which might be justified or not ). Things are not as black and what as some people think.

 

[VCheng]

It's 7am buddy time to go to work as usual. I was on holiday in Thailand and the PI for 30 or so days. You at the Big Apple right? A little chilly 51 brrrrr.. I need a coffee!

The weekend is around the corner. It snowed here last weekend, so 50s feels warm.

I need a coffee too.

 

[James David]

Why is it that people don’t ask themselves why China as you said hasn’t adopted the measures you said in other to make the dollar lose its current reserve status?
Seems people on here are just indulging in wishful thinking due to their hostile view of the U.S( which might be justified or not ). Things are not as black and what as some people think.

@mike2000 is back WTH have you been my Stiff Upper Lip Red Coat? It's been years since I last saw you!!!

The weekend is around the corner. It snowed here last weekend, so 50s feels warm.

I need a coffee too.

I was in Paradise for holiday! White sand beaches, cold beer, and the night life! Don't make me tell stories I swear you'll drool!!! I was wearing tops the whole time! So 50s is cold for me! I'm moving there when I retire!!!

 

[Zhukov]

Why is it that people don’t ask themselves why China as you said hasn’t adopted the measures you said in other to make the dollar lose its current reserve status?
Seems people on here are just indulging in wishful thinking due to their hostile view of the U.S( which might be justified or not ). Things are not as black and what as some people think.

Why would China do anything to disrupt US dominance?
Its growing under the US shadow at lightning Speed. Not only china. Most of the Rapidly developing powers are on the same path. LET US do the global policing and let do the hectic work of maintaining this system of International Trade.
Things are never Black and White. But Still people want to make them the way they seem fit.
As for General Hostility toward USA is concerned. Its USA itself to blame and none other. When being sole super power USA blatantly violates sovereignty of smaller weaker countries which are no threat to it with such weak narratives, Other countries definitely become insecure of the uncontrolled mammoth.
Why can i be sure that USA will not turn to my country without any particular reason the way it crushed Iraq under its boots?. The Fact is that USA has become way too Powerful for a single country. And what ever it does it is not seen as acts of a simple country.

 

[VCheng]

I was in Paradise for holiday! White sand beaches, cold beer, and the night life! Don't make me tell stories I swear you'll drool!!! I was wearing tops the whole time! So 50s is cold for me! I'm moving there when I retire!!!

I am glad you had a great time there. To stay on topic, did the people there accept your worthless USD for payments or you had to convert them into Bahts and Yuan?

 

[James David]

I am glad you had a great time there. To stay on topic, did the people there accept your worthless USD for payments or you had to convert them into Bahts and Yuan?

$$$$$ and will always be $$$$$!!! about 70 cents for this..

and this!!! Awesome taste!!!

while I was chillin here...

With the wife..

at the beach in PI

I'm seriously planning to move here after the kids go to college!