looks like g7 is outpassed by brics recently, although it has been gradually happening, it looks like it crossed psychological mark where 1st time brics pass g7 in economic output. scary news is they are revamping up not using dollars. This concerns about dollar based savings, 401k, 529. Is there any financial instrument that leverage against dropping USD value?
A lot of saber rattling in the news. The US dollar is going nowhere. The same moaning happened when the euro was under pressure. One single sentence spoken by then ECB chairman Mario Drahgi and everything was back in order. Right now the BRIC is exhibiting some strength (except the R, lol) and everyone thinks the US dollar hegemony is over. Nonsense. Will payments for trade reassessed and more goods paid in RMB in the future? Sure, but right now China is pumping out shit quality in quantity and Europe and the US quality in low quantities. The value equation is the same. The RMB will not be used more often than the USD unless the Chinese output vastly exceeds the one of the US in value. Let's not forget that some societies are considered cavalier losers and others are vengeful losers who leash out and retaliate. The US would definitely be considered the latter. Hence nobody must worry that the USD is going out of fashion any time soon.
Yes you are talking about the hedge against fiat and it is gold, or other commodity which consumption doesn't follow business cycles.
Most emerging countries are too worried about capital flight so they will never let their currencies float freely in a market. This includes China, Taiwan, South Korea, etc. Even the Japanese aren't interested in a free market of their currency since they're too busy manipulating the yield to insure perpetual ZIRP. As for a falling USD, the best protection is just buy commodities especially metals.
I think people are seriously overreacting to BRICS right now. Overreacting to Lula. Lula is going to be an economic disaster and China, India and Russia is just not going to work as an alliance long term. I would be worried if OpenAI and chatGPT was Indian or Chinese. America might be past its prime but it isn't that far past. I can't imagine the American empire and the dollar doesn't have at least another 50-100 years to run. OpenAI though is a good symptom of the dynamism that is left in our system in America. Peter Zeihan makes some crazy points but he makes a lot of great points as well.
I didn’t know they have a brics bank, sounds serious. https://en.wikipedia.org/wiki/New_Development_Bank https://www.scmp.com/economy/china-...ll-deals-diplomacy-and-south-american-inroads “I’m thinking about the same question every night: why should all the countries use US dollars for settlements and not the yuan or other international currencies,” he was quoted as saying by Chinese media group The Paper, citing a translation of his speech made in Portuguese. “Why can’t the New Development Bank extend loans in the currencies of member countries? I know we are accustomed to using the US dollar, but we are in the 21st century, and we can do something different.”
It feels like just yesterday, so many were so sure the Euro would step in to take over role of the reserve currency. It was ok that the Dollar was going to get wrekt, because the Euro we could count on to pick up all the pieces and continue on.... Ohh how that looks silly now.... Hello Brics!
if you are talking about overreaction, imo, it has been always name of the game. As far as america goes, it was always on the verge desctruction, be it during great depression. When the true destrcution will ever happen, beats me to hell.
True destruction will happen when dollar falls. I believe US mistakenly weaponized dollar through unhinged sanctions against everyone for everything so it became a matter of survival for many big economies at least to try to phase out dollar. Previous attempt with euro didn't fly because euro countries are vassals to the USA politically. Now we will see another attempt from more independent and power coalition