I’ve been watching China’s advances in South America for some time, and last year noticed this:
Brazil’s central bank more than quadrupled its foreign reserves in Chinese yuan last year, policymakers reported on Thursday, as it trimmed holdings of U.S. dollars and euros and built Brazilian reserves of currency from its biggest trade partner.
I was still a bit surprised by this:
China and Brazil have reached a deal to trade in their own currencies, ditching the US dollar as an intermediary, the Brazilian government said Wednesday, Beijing’s latest salvo against the almighty greenback.
It all started in 1965 by this man:
In 1965, French President Charles De Gaulle, called in for an international return to the gold standard. He was the first person in modern history to call the hand of the USA on its then obligation to convert French held dollar reserves into gold. He demanded that the US ship back their dollars in converted gold to France.
I think that he and a few others saw what the dollar was:
As American economist Barry Eichengreen summarized: “It costs only a few cents for the Bureau of Engraving and Printing to produce a $100 bill, but other countries had to pony up $100 of actual goods in order to obtain one.”
I’ve always been surprised that the USA has gotten away with it for so long. Putin’s invasion of the Ukraine and the subsequent actions of the US government have hastened the dollar’s decline.
I’m just interested in what the ‘post dollar world’ will look like.
I quietly give you credit Bob. You do not cry if someone disagrees with you. I have had 40 years of loud mouths for supply side econ crying in tons of anger any time their little world view is challenged. Meanwhile every simplistic little word of supply side econ was total lies. Watching this leaves me thinking people in fact can be braindead to a larger degree than we realize.
Bottom line we truly need industrial policies. Yet the minor minds think that is going terribly wrong.