https://www.cnsnews.com/commentary/peter-c-earle/world-abandoning-us-dollar
The World is Abandoning the U.S. Dollar
Last week, China and Brazil reached an agreement to settle trades in one anothers’ currencies. Over the past 15 years, China has replaced the United States as the main trading partner of resource-rich Brazil, and as such that shift may have been inevitable. But within the context of recent circumstances, this appears to be another in a series of recent blows to the central role of the dollar in global trade.
As the world’s reserve currency, the U.S. dollar is essentially the default currency in international trade and a global unit of account. Because of that, every central bank, Treasury/exchequer, and major firm on Earth keeps a large portion of their foreign exchange holdings in U.S. dollars. And because holders of dollars seek returns on those balances, the ubiquity of dollars drives a substantial portion of the demand for U.S. government bonds in world financial markets.
The switch from dollars to a yuan-real settlement basis in Chinese-Brazilian trade is only the latest in a growing trend. Discussions of a more politically neutral reserve currency have gone on for decades. The profound economic disruption experienced by Iran, and more recently Russia, after being evicted from dollar-based trading systems like SWIFT, however, have led many nations to consider imminent contingency plans.
India and Malaysia, for example, have recently begun using the Indian Rupee to settle certain trades, and there have been perennial warnings about Saudi Arabia and other energy exporters moving away from the dollar. On that note, China also recently executed a test trade for natural gas with France settled in yuan.
@vivify
The western empire usually solves this sort of problem with war. A book was written about it called "Petrodollar Warfare". Our government is fighting a proxy war against Russia and is getting ready for another with China in Taiwan.
Russia started BRICS and China is part of it and has the 2nd largest economy in the world and is growing fast. Have you noticed our government has military bases surrounding China?
https://foreignpolicy.com/2013/08/20/surrounded-how-the-u-s-is-encircling-china-with-military-bases/
@earl-of-trumps saidThat is exactly why the western empire is looking for a fight with China. The western empire fears the rise of China and is looking for ways to weaken China to hold them back. It appears a proxy war in Taiwan is the goal to do that.
China has 1.4 billion people and the government is ambitious.
The US can no longer keep up with that
Expect more anti China propaganda in the west if they decide to follow through with that. Personally, I think that would be a big mistake. I think the Rockefellers let power go to their heads. Most of the world is getting sick of the USA using sanctions as a weapon. BRICS is going to become a trend. Any nation that hates US sanctions is going to try and join BRICS.
https://www.reuters.com/world/middle-east/iran-applies-join-brics-group-emerging-countries-2022-06-27/
@Earl-of-Trumps
Ha! Even Yellen said it.
Sanctions are backfiring on the US dollar.
https://greatgameindia.com/us-dollar-may-lose-its-dominance-if-nations-are-sanctioned-warns-treasury-secretary-janet-yellen/
This is what abuse of sanctions leads to. Rise of BRICS.