PetroYuan?
Saudi Arabia Considers Accepting Yuan Instead of Dollars for Chinese Oil Sales
Talks between Riyadh and Beijing have accelerated as the Saudi unhappiness grows with Washington
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Maybe the first “chink in the armor,” but at the same time, so long as Beijing maintains their not-officially-manipulated-but-everyone-knows-it peg of roughly 7:1, what practical difference does it make?
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The US dollar has been on the slide for some time, ever since it defaulted on the Bretton Woods International Agreement. This happened just recently:
Alexander Mikheev, Director General of Russia’s state arms exporter, Rosoboronexport, announced, on Tuesday, that Russia and India have abandoned the use of the US dollar in mutual settlements, with all payments made in rubles and rupees.
https://english.almayadeen.net/news/politics/russia-india-ab…
I’m not too sure that India will be so keep on the ruble at the moment though!
The US dollar will suffer like the UK’s Sterling currency - a long lingering death
Death of the dollar?
To be replaced buy what? The Yen, wait that is so 1980’s. The Riyal, they found out nobody really wanted them when oil tanked. The Yuan, Xi’s economic policies and Covid have it bouncing like a YO-YO on the international and this will get worse as the US cuts it trade…
You might have well said the dollar was being replaced by the Russian Ruble.
OTFoolish
P.S. I remember as a kid trading baseball cards but to the adults they were mostly worthless.
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To be replaced buy what?
I wish that I knew, I would be very wealthy if I did.
The process has started. In 50 years I suspect that the US dollar will be primus inter pares with a few other currencies
Alexander Mikheev, Director General of Russia’s state arms exporter, Rosoboronexport, announced, on Tuesday, that Russia and India have abandoned the use of the US dollar in mutual settlements, with all payments made in rubles and rupees.
Somebody got a great deal out of that agreement. The ruble is now almost worthless. Of course, the other side got screwed.
The world will certainly take notice of the power that has been granted the US dollar payments system and the willingness of the USA to increasingly use it, and use its military to defend it. The USA is sowing the seeds of its own dollar downfall:
How A Weaponized dollar Could Backfire
https://www.belfercenter.org/publication/how-weaponized-doll…
I still only want dollars.
It only cost extra to exchange them for Yuan with their peg and 14% inflation rate.
The process has started. In 50 years I suspect that the US dollar will be primus inter pares with a few other currencies
Only if China’s economy does not crash, which is doubtful, IMO.
China has done an incredible feat in rising the standard of living of their people to the current level but it has turned into a problem, the wealth is menacing the power of the Ruling Elite Dictators, i.e. the CCP. For the CCP the logical thing to do is to neuter the entrepreneurs. The economic collapse is going to be the unintended consequence of the crackdown.
The Captain
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The US dollar will suffer like the UK’s Sterling currency - a long lingering death
You’re right, Divitias, but I still would gladly take US Dollars or British Pounds over Rupees or Rubles in exchange for anything of significant value.
With Queen Elizabeth II rapidly approaching her 96th birthday, I recently investigated the readily available 1 ounce Gold Bullion Coins bearing her likeness, quickly identifying those minted in Britain, Australia, and Canada. I’ve never been particularly fond of Charles, Prince of Wales, so I would rather own something bearing his mother’s face than his.
Britain’s Pound Sterling may not be the world’s reserve currency, but I daresay it will still have greater stability than some which have come and gone in the last 100 years. At least some of that stability may be attributed to HRH’s dutiful service as Sovereign and Head of State.
As long as her reign has been, she ranks as only the fourth-longest reigning monarch in world history. According to posh social climbers at Town & Country magazine, the 10 longest-reigning monarchs in world history are as follows:
1. Louis XIV, France (72-year reign)
2. Bhumibol Adulyadej (Rama IX), Thailand (70-year reign)
3. Johann II, Liechtenstein (70-year reign)
4. Elizabeth II, United Kingdom (70-year-reign)
5. K’inich Janaab’ Pakal, Palenque (68-year reign)
6. Franz Joseph, Austria(67-year reign)
7. Ferdinand III, Sicily (65-year reign
8. Victoria, United Kingdom (63-year reign)
9. James I, Aragon (2-year reign)
10. Hirohito (Emperor Showa), Japan (62-year reign)
https://www.countryliving.com/uk/news/a39102607/longest-reig…
The US Dollar thankfully does not bear the likeness of our recent presidents, although one would-be monarch’s image can be found on the obverse of a generous selection of commemorative gold-electroplated coins.
https://www.americanmint.com/coins-and-commemoratives/presid…
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China has done an incredible feat in rising the standard of living of their people to the current level but it has turned into a problem, the wealth is menacing the power of the Ruling Elite Dictators, i.e. the CCP. For the CCP the logical thing to do is to neuter the entrepreneurs. The economic collapse is going to be the unintended consequence of the crackdown.
Captain,
I suspect you are correct in highlighting the fact that economies thrive much better when entrepreneurs have politicians on a leash, rather than politicians holding entrepreneurs on a leash.
Russia’s oligarchs are finding out what happens when you allow political or military leaders to control a nation’s destiny.
The US and most modern nations have learned that capitalist, democratic (or quasi-democratic) societies can sustain a strong economy even though their most powerful figures are plutocrats.
Russia (and perhaps China) will eventually learn that placing corrupt politicians or petty tyrants over successful entrepreneurs and business people is just killing geese that lay the golden eggs.
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