Earlier quoted context omitted.
How so?
I guess because gold isn't created by decree?
Supply is only one half of value. The demand for gold is almost entirely speculative, whereas dollars can be directly used for almost anything.
De-dollarization: Is the US dollar losing its dominance? (2025)
761–770 of 913 posts
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#762Related is the PM of Canada’s speech at Davos today. I don’t think that I have heard such a blunt assessment of the past and future from a politician, ever. This may be a historically significant speech. https://www.youtube.com/live/dE981Z_TaVo?t=100
"If we’re not at table, we’re on the menu"
Good speech indeed
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#763The US century is already over. It's just that a lot of US citizens don't see that. De-dollarization will happen when one is a traitor to it's allies
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Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#764Earlier quoted context omitted.
The Fed and largely US policy has absolutely no effect on the real reserve currency: https://en.wikipedia.org/wiki/Eurodollar
Didn't know that was a real term Mike Pondsmith used for cyberpunk
It is, but he got the macroeconomics backwards so enjoying it on an aesthetic level rather than a mechanical level is still the right choice.
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#765Related is the PM of Canada’s speech at Davos today. I don’t think that I have heard such a blunt assessment of the past and future from a politician, ever. This may be a historically significant speech. https://www.youtube.com/live/dE981Z_TaVo?t=100
Mark Carney is a great orator, I was impressed just a few days ago by his speech after meeting Xi Jinping in China:
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#766Related is the PM of Canada’s speech at Davos today. I don’t think that I have heard such a blunt assessment of the past and future from a politician, ever. This may be a historically significant speech. https://www.youtube.com/live/dE981Z_TaVo?t=100
He quotes Václav Havel: https://en.wikipedia.org/wiki/The_Power_of_the_Powerless
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#767For those who are not bothering to read this,the article essentially states that de-dollarization is happening in pockets (e.g., reserves down to ~58-60%, Treasuries foreign ownership at 30%), but the dollar's core dominance persists. What would replace it? I guess the options are Yuan, Gold, Oil or maybe BRICS in the future, none of which are safe, stable, and liquid.
Nothing. The Dollar is antifragile. The worse it gets, the more entrenched it becomes. [0] [0] https://en.wikipedia.org/wiki/Gresham%27s_law
Couldn't you make the same case for every other former reserve currency which has had something replace it?
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#768I strongly encourage interested folks to read Miran's "A User's Guide to Restructuring the Global Trading System" (I won't link directly since it auto-downloads a PDF). Miran, and his thinking, clearly have this admin's ear and they're following many of the prescribed steps in his white paper. To the T frankly. So if you're surprised by the USD devaluing by 10% last year or the immense pressure to drop the fed rate t…
Peter Navarro is the idiot whose mostly pushing the Trump economic policies. I say idiot, because he is really a complete and total crackpot. He's written a couple of papers where he cites himself on uncited principles as if they were ironclad economics. A flat earther to an astronomer is what Navarro is to an economist.
He is anti-trade and pro-isolation. He actually wants the US dollar to lose it's status as a world currency. His thought? If it does, then we'll better address national debt. Basically "Let's light the house on fire so we finally address the upstairs draft."
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#769Earlier quoted context omitted.
I wouldn't put it on one person, it was basically everyone between Roosevelt and Obama. Not that any of them were exactly geniuses, but we've gone from mostly sober drivers to someone blowing a 0.5 BAC.
do you mind qualifying this? it sounds like you mean dollar hegemony, which I might accept, but if you mean foreign policy in general, I can think of many invasions , financial crises, cold wars, lost prosperity for most of those Presidents.
I think we're talking less about the aspect of Bismarck where he won 3 big wars and lost none, and more about the part where he set up a delicate system that was maybe too complex for his successors to maintain, especially under idiosyncratic leaders. We're not talking about financial crises. Bismarck did not stop the Panic of 1873 (in fact, you could wave your hands and argue he indirectly caused it).
As far as "who set up the US empire, in all its complexity?", I'd argue for the 4 guys I named in my other comment, but your list might differ. And if you're just interested in the dollar system per se, I'd probably go with Harry Dexter White, who strangely enough turned out to be a Soviet spy.
Oh, and if you want a pretty clear analogy from Bismarck's system to earlier US monetary history: Benjamin Strong got the Federal Reserve System up and running and figured out a bunch of the right tricks, but he died in 1928 without getting his successors up to speed on how to run things. They failed miserably in next couple years. Bad timing!
Re: De-dollarization: Is the US dollar losing its dominance? (2025)
#770Earlier quoted context omitted.
> My current hypothesis is that the growth in the _price_ of the US Stock market (eg S&P 500) is actually devaluation of the dollar. You mean devaluation is causing the growth of SP500, or the other way around?
the S&P is only growing when the denominator is USD. Not Euro or Gold. It's kinda like saying during "My bread appreciated!" during hyper inflation. IMO we're in one of the cases where "Number go up" is actually bad.
In the UK we have a convenient way of observing this phenomenon.
The FTSE100 is mostly multinational companies valued in pounds. The FTSE250 is mostly British companies valued in pounds. If the FTSE100 goes up while the FTSE250 stays flat or falls then it means the currency got devalued and there's no real growth.