Topic: Could there be a new financial system not dependent on USD? - page 5. (Read 971 times)

Russia would love that, I am sure that after their own ruble got screwed so hard and they are getting crashed in the markets and basically the whole economy of the nation is crashing, along with Chian who wanted to kill muslims in their own nation and attack taiwan, and then got their factories switched for pakistani ones or whatever, and started to have financial troubles because of that, wants to see Dollar have some trouble too.

But you know what? America made that money by selling stuff to others, and they are powerful and even though I dislike them as well, they at least earned it, the hard way, and they will keep being the strongest. Plus we need at least one strongest, so you gotta pick one, I think Euro would have been better but Dollar ain't bad too.

I think a new currency was needed to break the monopoly of the dollar. Although I don't know if Brick will succeed in its intended purpose even them I am supporting this step . But I don't think it will be so competitive initially, if some other countries from Europe join this apart from these nations, then I think it will not be far behind in the competition. I think many countries in Asia are going to join here and if they get recognition for this currency business then I think the way forward will be more smooth.

No, this is a deep misunderstanding. The Chinese economy is large, but absolutely dependent on Western buyers and technology. And China has a weak yuan! That is why China plans to surround itself with not very smart "friends" and put them on its yuan. Because The Chinese economy, without "exporting inflation", will not be able to get out of the current situation and save its economy, which is getting closer to collapse. Western investment is leaving China, technology is leaving China, production is being revived in the US and the EU, China is losing markets and could potentially receive more sanctions. China does not want to take risks, so it builds a "security perimeter", which will then be forced to consume all Chinese consumer goods, and China monopolizes the supply of these countries with inexpensive and not very high-quality goods that cannot compete in the Western market. And the humble servants of China will be FORCED to buy it all from China, at the price that China will indicate ... Well, what did you think - these fools refused the dollar, and no one except China will sell them anything for the yuan

China has a big economy and a strong currency, to yes, some countries can figure out a way of bypassing the USD and undermining it. If BRICS threw support over Yuan, that could make a big difference, but I don't think they're going to do that. Russia likes their own currency, India might feel strong about their currency as well, and while they want to undermine the USA and the USD, they don't want to simply try to replace it with China either. As for agreeing on a whole new other common currency, it will be hard to figure out who will regulate it, be responsible to ensure its stability etc. So for now, I'd say China has the best chances of growing influence of its currency in the world, but it's still not close to making a new financial system, and I don't think a world heavily reliant on China is a better world than the one heavily relying on the USA, to be honest.

The question is - what are the benefits for countries to switch from a dollar secured and recognized by the world economy to a falling and unsecured yuan?
There is only one beneficiary here - this is China, who helps their "not very smart friends" to "get rid of dollars." At the same time, he slips his yuan to them, thus exporting his inflation. And in the future, it will simply make the economies of countries that will be "up to the throat" filled with yuan totally dependent. At the same time, the United States will not feel much discomfort, because. China will, on the contrary, try to accumulate more dollars, which you are now observing. That is, China is shouting into a mouthpiece "give up the dollar, switch to the yuan", and at this time, with their own hands, dollars are pouring into their gold and foreign exchange reserves

In one word - explain the benefits, and how is dependence on the yuan better than dependence on an international currency, on a global scale?

Not only are countries that have joined the BRICS, but it also turns out that countries in Asia and the Middle Eastern countries will be interested in the ideas made by the BRICS to reduce their dependence on the US Dollar. For the US, this action is a big threat if it is formed and succeeds in creating transactions. In any case, I think the new currency will get more and more popular. Although it takes quite a long time for it to be said to be a stable new currency, it will certainly be driven by the good relations of the BRICS countries with other countries. So that it can shorten adoption on a faster scale.

Instead they try to fool people who are already stupid. Let's look at one case in the field of trade in Chinese products. What do they offer consumers? nothing more than cheap goods that do not have the quality to be used in the long term and what is their background wanting to leave the US dollar and trying to influence other countries to join them, of course we already know the answer, although we are not trying to find out.

There are many irregularities about the BRICS and as far as I know it will not be able to destroy the dominance of the US Dollar, because global trade agreements with the United States are bound by regulations and not by nonsense.

All countries must have dreams of mastering natural resources in other countries by creating a new binding system, for example creating a new currency for global trade as the BRICS union has done. The next question is to what extent their power can affect many countries, while the dominance of the US dollar has lasted decades?

The quality of products created by America has advantages in the long run and this is only talking about one sector, not to mention the US dollar's strength, which is why they are very strong in maintaining dominance. The unions established by the countries that joined the BRICS are legitimate and not against world rules, but I am not very optimistic about the projects they develop.

Impact of the bitcoin mining ban:
- reduce global hash power, supply of mined btc does not decrease;
- does not reduce the number of uses and needs;
- those involved in dumping the bitcoin price are just speculators.

The de-dollarization by the BRICS countries will have a bigger impact than you can imagine, because after all this is an economic war. If the USD cannot find an equivalent replacement country, then what are the alternatives?

It must be admitted that the influence of the USD is the strongest and determines global economic conditions, when there is a change with the USD it will have a global impact, because it is still the leader of the world economy, it seems that there is no system that can get out of the USD.

No doubt US dollar is one of the world most used currency but that doesn't mean it can't lose such status in the future especially we are to use the very current conditions that are taking place among different countries of the world diverting interest to the use of other currencies like the Chinese Yuan for their international financial transacts and trades. It may not be that easily to silence the weight of the dollar in the international market as most of these nations have their debts owed in dollars and  it's only to be paid in dollars. Paying back their back log debts in dollars will only give strength to the dollar the more and that's why I said it wouldn't be easily to silence the dollarization strength but some how it's possible.

Such system is only onna decentralized network like bitcoin in cryptocurrency, we have several attempts from many people who have worked on doing something related to this before now but there's no tangible results that others have succeeded having thqn creating alternate cryptocurrencies which most of them turn a project people fear, vut bitcoin is the only reliable cryptocurrency that is available for use and in future time to come, ut may outsmart the role of fiat since the world is revolving round the digital technology.

This is the "dream" of BRICS nations, but the reality is very different. They are rich because of their resources, it can be gas, it can be oil, it can be even humans, it can be whatever that is cheap for them and make a lot of money for others.

However, if you talk about the big nations like America, then dollar is strong because of what they do with those resources, if you have oil that's great, they put that oil into planes and make multiple times people fly, or they put it on jet fighters and attack another nation, or they put it on cars and drive to work at google or apple that everyone uses. So, all in all it is not about what you have, but what you can make with what you have and those big nations are great at that which will not stop.

The problem of the "BRICS dollar fighters" is that they do not quite understand why their "union" will not change anything, except for the deterioration of their economies
1. Between themselves, they can even for kakuri shells and multi-colored glass beads. But the dollar has no problems with this. They will sell those goods and services that are not sold for dollars anyway.
2. But since ALL members of this "powerful" union are dependent on the West (from loans to technology and high-tech goods) - they WILL ALWAYS buy it for dollars ... Which, by the way, they will not have, they also abandoned the dollar "unsecured by anything hegemon." Dollars in the BRICS were, are and will be ONLY IN CHINA, and the volume of their consumption on the world market will not fall, it’s just that now dollars will enter the market not from Brazil, India, and other unfortunate participants, but centrally through China.

Do you feel how subtly China "broke the fools"?

The dominance of the US dollar will not be reduced by the existence of the BRICS, an alliance of countries that are members of the global trade plan are only included in the category of a few countries. Dependence on the US dollar is also very difficult for other countries to cancel cooperation with the United States, on the other hand there are special agreements that are regulated when carrying out cooperation.

Everything can happen beyond the predictions or observations made by experts, but as far as I know the strength of the United States in building cooperation with other countries in the field of global trade is very difficult to break, they really control several important sectors now and decades of their dominance no one has been able to match. The strength of the countries that are members of the BRICS will also determine how far this project can go, while in it we see that only Russia and China have the capability, while the economic strength of countries that have the possibility to join is unclear.

I want to remind you that we live in the 21st century. Until the 20th century, territories, resources and population were indeed a factor in the power and strength of the state. These are the resources necessary to provide for themselves and export, and the ability to wage large-scale wars, and the ability to create huge problems for any attacker due to a large territory ... But it's all over .. Now the world has moved to a new level - from a resource economy to a technological economy, and resources .. have become just resources that technologically backward countries, with the help of technologies from highly developed countries, extract, process, and for the currency of developed countries - they will also be happy to package them beautifully for the customer
and if technologically the rest of the country is left without technology and markets, they begin to degrade very quickly. Well, this is how the competitive system of the world works, whether we like it or not....

I can give you a great example - the USSR. The country was huge, 250 million people, all the same resources, the strongest army in the world, nuclear weapons .... And where is it now? What happened to her? I myself, inside the USSR, lived and saw how it sank to the bottom ... And neither the territory, nor the resources, nor its technologies, which, although noticeably lagged behind the Western ones, saved it!

And now let's take Russia and its energy resources as an example. In 2022, their "happiness" and "greatness" is over! Why ? Gone are the markets for resources. The technological backwardness of the economy and the stupidity of the country's leadership have led to the fact that Russia is now physically unable to store excess gas and oil (the storage system has not been built, and after the sanctions it is no longer possible to build). It is possible to conserve sources, but it is no longer possible to reactivate them - Western drilling technologies and related technologies are needed. And now she is forced to sell these resources for a penny to her, either to her "big brothers" or to her "owners" - China and India ...

I admit to you that in terms of technology, the US and EU are superior at the moment. But the world doesn't work that way, all need each other, and each has a strength, no one monopolizes everything. China and India are the two most populous countries in the world, they have an abundant labor force, and Russia has huge energy resources. Not to mention, we can see China's technology is constantly developing, it is only a matter of time before they surpass the US or EU.
It is extremely difficult to get rid of dependence on the hundred-year-old USD empire, but nothing is impossible, and no one stands on top of the glory forever.

I agree since if more countries would join the BRICS of removing US dollar in trade transactions, a new currency system could arise other than this. But, given that us dollar is widely used in the world trade, I can't see it to be replaced soon. But given some countries are ditching the use of dollar in trading, this might affect the power of the dollar as a global currency. It would be bad for their economy if these happens. But we should not erase the fact that USA have greater power in most of the country in the world that we could say that they are reliant to them in terms of economy. So, it would be very difficult to predict what could happen in that sense.

Perhaps the desire of the BRICS countries to get rid of the dollar is indeed there. Russia, for example, has not only a desire, but also a necessity. Because it is actually cut off from the dollar and the euro by the imposed sanctions. There has long been a cold war for economic supremacy between China and the US. But Russia, China, like the rest of the BRICS countries, depend on technology and trade with the EU and the US. And without these technologies, they will not develop rapidly. Therefore, not everything is as simple as it seems at first glance. Each member of the BRICS will still have their own interests. So I don't think they will succeed.

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The BRICS is an alliance of great nations but will their plan be a huge success, above it was explained that each country still has its own interests and often their plans change according to the political conditions there.

btw, I don't see the de-dollarization that many alliance states are doing to be effective in the short term but it will be effective in the long term.

in fact, we can see one country that is trying to reduce their country dependence on the USD, that is el salvador, so far they are fully dependent on the dollar but trying to reduce that dependence by making Bitcoin a legal tender.

Yes, soon not certainly the US dollar may not be as powerful as it is now but this isn't going to happen in the twinkle of an eye. In fact the duration for this change to fully occur is 10 - 20 years.
This is so because there will still be many hurdles to cross Before the so-called BRICS will be fully integrated into the financial system. First of which is how to convert it, then it's liquidity , stability, and credibility. We might see a whole financial war before it happens. Therefore, let's not be so optimistic about this news.