The US$$ as the World's reserve currency

[bennydorano]

Have I liked one too many Conspiracy Theory tiktok videos or tweets? I've been seeing a bit of this on my various social media timeliness. ( BRIC countries trying to usurp the US Dollar as the world's reserve currency). I'm sure it would be a decade + to make any headway but that would have enormous economic implications for the US. The Ukraine War & fallout seems to be accelerating the process.

https://foreignpolicy.com/2023/04/24/brics-currency-end-dollar-dominance-united-states-russia-china/

https://dailyinvestor.com/world/14318/dollar-to-remain-dominant-despite-brics-currency-challenge/the

[johnnycool]

Have I liked one too many Conspiracy Theory tiktok videos or tweets? I've been seeing a bit of this on my various social media timeliness. ( BRIC countries trying to usurp the US Dollar as the world's reserve currency). I'm sure it would be a decade + to make any headway but that would have enormous economic implications for the US. The Ukraine War & fallout seems to be accelerating the process.

https://foreignpolicy.com/2023/04/24/brics-currency-end-dollar-dominance-united-states-russia-china/

https://dailyinvestor.com/world/14318/dollar-to-remain-dominant-despite-brics-currency-challenge/the

Was one of the reasons the Yanks went to war in Iraq not that Saddam was threatening to sell their oil in Euros?

[trailer]

I've been tipping away at the Crypto market. Mostly Bitcoin. Happy enough with how it's going. I think there's another big up coming.

[Armagh18]

Have I liked one too many Conspiracy Theory tiktok videos or tweets? I've been seeing a bit of this on my various social media timeliness. ( BRIC countries trying to usurp the US Dollar as the world's reserve currency). I'm sure it would be a decade + to make any headway but that would have enormous economic implications for the US. The Ukraine War & fallout seems to be accelerating the process.

https://foreignpolicy.com/2023/04/24/brics-currency-end-dollar-dominance-united-states-russia-china/

https://dailyinvestor.com/world/14318/dollar-to-remain-dominant-despite-brics-currency-challenge/the

Was one of the reasons the Yanks went to war in Iraq not that Saddam was threatening to sell their oil in Euros?

They say Gaddaffi was looking to do similar in Africa, start a centralised African currency.

[Main Street]

Have I liked one too many Conspiracy Theory tiktok videos or tweets? I've been seeing a bit of this on my various social media timeliness. ( BRIC countries trying to usurp the US Dollar as the world's reserve currency). I'm sure it would be a decade + to make any headway but that would have enormous economic implications for the US. The Ukraine War & fallout seems to be accelerating the process.

https://foreignpolicy.com/2023/04/24/brics-currency-end-dollar-dominance-united-states-russia-china/

https://dailyinvestor.com/world/14318/dollar-to-remain-dominant-despite-brics-currency-challenge/the

Was one of the reasons the Yanks went to war in Iraq not that Saddam was threatening to sell their oil in Euros?

That was a theory which Robert Fisk also peddled, it was far from his finest. There is not enough trade in oil to have an impact on the value of the USD.

[seafoid]

Reserve currency status usually goes  to the most powerful country in the world. Before WW2 that was the UK with sterling and after WW2 it was the US.

[dec]

Reserve currency status usually goes  to the most powerful country in the world. Before WW2 that was the UK with sterling and after WW2 it was the US.

This.

There are a lot of things you can buy with dollars, therefore there are a lot of people willing to buy dollars, therefore USD is the world reserve currency.

[smelmoth]

I've been tipping away at the Crypto market. Mostly Bitcoin. Happy enough with how it's going. I think there's another big up coming.

And what would that bit of "thinking" be based upon?

[smelmoth]

Have I liked one too many Conspiracy Theory tiktok videos or tweets? I've been seeing a bit of this on my various social media timeliness. ( BRIC countries trying to usurp the US Dollar as the world's reserve currency). I'm sure it would be a decade + to make any headway but that would have enormous economic implications for the US. The Ukraine War & fallout seems to be accelerating the process.

https://foreignpolicy.com/2023/04/24/brics-currency-end-dollar-dominance-united-states-russia-china/

https://dailyinvestor.com/world/14318/dollar-to-remain-dominant-despite-brics-currency-challenge/the

Was one of the reasons the Yanks went to war in Iraq not that Saddam was threatening to sell their oil in Euros?

Was it really? Any evidence?

I recall someone spouting that at the time. When they went on to state that countries tried to maximise the value of their own currency then I knew they were a crackpot.

[bennydorano]

Reserve currency status usually goes  to the most powerful country in the world. Before WW2 that was the UK with sterling and after WW2 it was the US.

This.

There are a lot of things you can buy with dollars, therefore there are a lot of people willing to buy dollars, therefore USD is the world reserve currency.

Bretton Woods agreement 1944

https://www.transwap.com/blog/us-dollar-how-it-became-the-global-currency

Good article, history of and other future options.

[Gmac]

Joe will sink the US , happening everyday already

[bennydorano]

It's felt like the last days of the Roman Empire in regards to the US for a long time. I reckon China will eventually invade Taiwan and the US will be entangled, overstretched & exposed, it will hasten the demise.

[Smokin Joe]

I don't see much risk to the US$ not being the currency that is used the most throughout the world.

However, I can see it's days as being the world's reserve asset (ie countries save the majority of their surpluses in US Treasuries) being numbered.  Gold will go back to being a bigger part of countries storing their savings, note it hit an all time high valuation yesterday with the continued difficulty of US regional banks, as will Bitcoin (not "Crypto", but Bitcoin).  The valuation of gold will have to rise significantly in price if it is used to settle net trading accounts as the energy trading surpluses / defecits are many multiples of the value of the gold being produced.

The change didn't start with the US sanctioning Russia's FX reserves, but it certainly accelerated the speed of this change.
Energy producers have known for some time that it doesn't make any sense for them to store the profits of their energy sales in US Treasuries when their fossil fuels are finite yet the value of the USD decreases every year due to inflation.  They would literally be safer keeping their excess exports in the ground as it will hold it's purchasing power better for future years.  But storing their reserves in gold is different as gold has historically kept its value compared to the price of oil; something the USD definitely hasn't done in the last 40 / 50 years.

[smelmoth]

I don't see much risk to the US$ not being the currency that is used the most throughout the world.

However, I can see it's days as being the world's reserve asset (ie countries save the majority of their surpluses in US Treasuries) being numbered.  Gold will go back to being a bigger part of countries storing their savings, note it hit an all time high valuation yesterday with the continued difficulty of US regional banks, as will Bitcoin (not "Crypto", but Bitcoin).  The valuation of gold will have to rise significantly in price if it is used to settle net trading accounts as the energy trading surpluses / defecits are many multiples of the value of the gold being produced.

The change didn't start with the US sanctioning Russia's FX reserves, but it certainly accelerated the speed of this change.
Energy producers have known for some time that it doesn't make any sense for them to store the profits of their energy sales in US Treasuries when their fossil fuels are finite yet the value of the USD decreases every year due to inflation.  They would literally be safer keeping their excess exports in the ground as it will hold it's purchasing power better for future years.  But storing their reserves in gold is different as gold has historically kept its value compared to the price of oil; something the USD definitely hasn't done in the last 40 / 50 years.

Would tracking oil prices be good?

Oil prices are 50% of what they were in 2007. And 3 years ago they were 13% of their 2007 value. I can only imagine the consequences of sovereign wealth fluctuating like that. I think that is one of the reasons why oil producing countries have tried to invest in alternative assets.

[Smokin Joe]

I don't see much risk to the US$ not being the currency that is used the most throughout the world.

However, I can see it's days as being the world's reserve asset (ie countries save the majority of their surpluses in US Treasuries) being numbered.  Gold will go back to being a bigger part of countries storing their savings, note it hit an all time high valuation yesterday with the continued difficulty of US regional banks, as will Bitcoin (not "Crypto", but Bitcoin).  The valuation of gold will have to rise significantly in price if it is used to settle net trading accounts as the energy trading surpluses / defecits are many multiples of the value of the gold being produced.

The change didn't start with the US sanctioning Russia's FX reserves, but it certainly accelerated the speed of this change.
Energy producers have known for some time that it doesn't make any sense for them to store the profits of their energy sales in US Treasuries when their fossil fuels are finite yet the value of the USD decreases every year due to inflation.  They would literally be safer keeping their excess exports in the ground as it will hold it's purchasing power better for future years.  But storing their reserves in gold is different as gold has historically kept its value compared to the price of oil; something the USD definitely hasn't done in the last 40 / 50 years.

Would tracking oil prices be good?

Oil prices are 50% of what they were in 2007. And 3 years ago they were 13% of their 2007 value. I can only imagine the consequences of sovereign wealth fluctuating like that. I think that is one of the reasons why oil producing countries have tried to invest in alternative assets.

It's certainly better than the historical alternative, storing their profits in US Treasuries as oil has increased from $2 per barrel to what is now a low of $67 (and occassionally over $100 per barrel)