What De-Dollarization? The Dollar Rules the World
bloomberg.com
What De-Dollarization? The Dollar Rules the World
1–10 of 37 posts
Re: What De-Dollarization? The Dollar Rules the World
#2Whoa, so the dollar really is in danger. Damn.
Re: What De-Dollarization? The Dollar Rules the World
#3Always take everything that politicians, corporate executives, Twitter talking heads, and other public figures say about macroeconomics at face value, especially if it sounds alarmist. Lately many of them have been saying that "the US is in decline," "the dollar's dominance is ending," "a new currency block is emerging," etc. Usually, like most people, they don't understand macroeconomics. They may be parroting something they read on the Web without realizing it.
If I may quote J. M. Keynes: "Practical men who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back."
Re: What De-Dollarization? The Dollar Rules the World
#4Whoa, so the dollar really is in danger. Damn.
00. pop "conspiracy theory"
10. "that's a conspiracy theory, that's a conspiracy theory"
20. mainstream media begins to ease their audiences into the new narrative
30. "we knew that all along, there's nothing to see here!"
40. goto 00
Re: What De-Dollarization? The Dollar Rules the World
#5Always take everything that politicians, corporate executives, Twitter talking heads, and other public figures say about macroeconomics at face value, especially if it sounds alarmist . Lately many of them have been saying that "the US is in decline," "the dollar's dominance is ending," "a new currency block is emerging," etc. Usually, like most people, they don't understand macroeconomics. They may be parroting some…
Poe's law: "Without a winking smiley or other blatant display of humor, it is utterly impossible to parody in such a way that someone won't mistake for a genuine article."
I cannot tell if you are serious or joking.
Re: What De-Dollarization? The Dollar Rules the World
#6Is this some sort of a public service article from Bloomberg? Just say No to the negative thoughts about dollar.
On a serious note, I recently read that there a big difference between the Reserve currency and the Payment currency. Interestingly, the Reserve currency is not US dollar, but US Treasuries instead. I guess it makes sense, as China, for example won’t be able to keep trillion USD Reserves in a bank account, it would have to invested in some highly liquid market, like US Treasuries. This can only change slowly, and the dollar reserve status will continue for quite a while. Replacement of Sterling for USD took some 30 years, for example, 1914-1944.
On the other hand, the status of USD as a Payment currency is changing quickly. I am not sure what the implications are.
Re: What De-Dollarization? The Dollar Rules the World
#7I'm having trouble understanding the authors point, it's not explained in much detail. Feels like an economist saying "This is a strong American dollar. You can tell it's strong by the way it is.."
Why are closed-capital markets in China a sign of a strong American dollar?
Re: What De-Dollarization? The Dollar Rules the World
#8>If there is any danger here, it is that the forthcoming debate in Washington over the debt ceiling somehow results in a US default
This, I do not understand why the GOP goes nuts over the debt limit. If they blow it this year, inflation worries we have now will seem quaint.
If China was not gaming their currency and had a real open economy, that would be a possible alternative. But with Xi in power, it will never happen. EUR should have been in a position to ascend, but Greece, Spain, Italy, Ireland and later on UK stopped that in its tracks. No trust there with the Euro right now.
Re: What De-Dollarization? The Dollar Rules the World
#9Is this some sort of a public service article from Bloomberg? Just say No to the negative thoughts about dollar. On a serious note, I recently read that there a big difference between the Reserve currency and the Payment currency. Interestingly, the Reserve currency is not US dollar, but US Treasuries instead. I guess it makes sense, as China, for example won’t be able to keep trillion USD Reserves in a bank account,…
Tyler and Bloomberg have always toed the 'establishment' view , such as being pro-Dollar. He's not wrong though. The dollar is still the official global 'unit' of wealth. E.g. the Forbes 400 rich list is denominated in dollars.
Re: What De-Dollarization? The Dollar Rules the World
#10> The US has the world’s deepest and most liquid financial markets, and they remain relatively open, in spite of some restrictions on Chinese investment in industries sensitive for national security.
lol, Except for these pesky bank runs, pay no attention to them. Oh and the constant intervening to prop up yield curves and inject liquidity, look the other way comrade.