I agree with you, I don't know why everyone is going against the dollar and they just want the dollar to lose its value. Quitting of dollar doesn't makes sense because it's currently the internationally acceptable currency and can be used anywhere in the world without any issue. It's the most useful currency out there and without it I can't even imagine that how would they do trades. Their own fiat currencies can be used bilaterally but that currency won't be acceptable globally.
Russia and other countries which have interests opposite to the US believe the dollar and its status as the world reserve currency of the world and as the petrodollar gives too much power to the US, and they are right, so they want to take that power away by using their own currencies to trade among them, however as much as we complain about the US printing too much money and the like, China, Russia and other countries are even worse currency manipulators than the US, which means they do not even trust each other when it comes to those exchanges on their local currencies, meaning this model seems destined to fail. 
Topic: Dedollarisation fails before starting, Russia and India halt rupee trade - page 3. (Read 402 times)
May 07, 2023, 02:01:15 PM
May 07, 2023, 12:47:14 PM
I agree with you, I don't know why everyone is going against the dollar and they just want the dollar to lose its value. Quitting of dollar doesn't makes sense because it's currently the internationally acceptable currency and can be used anywhere in the world without any issue. It's the most useful currency out there and without it I can't even imagine that how would they do trades. Their own fiat currencies can be used bilaterally but that currency won't be acceptable globally.
Well that was a pretty bad decision by Germany and their printing devalued the currency very badly. Their idea of printing infinite amount of notes worked against their plan and in order to purchase any thing they would have to carry many bundles of notes in bags.
As long as their fiat is traded in their own countries or against dollar we can't consider that useless. You sense of humor is quite good but no body would every accept payments in PooGrow until its grown to acceptable levels. And, anything can happen in crypto-world because a useless meme coin can be acceptable by Tesla than why not PooGrow? That makes sense if you put it into an equation like that otherwise RIP PooGrow.
Well that was a pretty bad decision by Germany and their printing devalued the currency very badly. Their idea of printing infinite amount of notes worked against their plan and in order to purchase any thing they would have to carry many bundles of notes in bags.
Quote
The chances of more countries using their useless fiat in order to settle trades?
Just as much as every single one of you denying a Bitcoin payment and choosing to be paid in PooGrow, which is an actual coin, btw!
Just as much as every single one of you denying a Bitcoin payment and choosing to be paid in PooGrow, which is an actual coin, btw!
As long as their fiat is traded in their own countries or against dollar we can't consider that useless. You sense of humor is quite good but no body would every accept payments in PooGrow until its grown to acceptable levels. And, anything can happen in crypto-world because a useless meme coin can be acceptable by Tesla than why not PooGrow? That makes sense if you put it into an equation like that otherwise RIP PooGrow.
May 07, 2023, 10:18:06 AM
Over the past months, we have been bombarded with articles about the global de-dollarisation, how countries will quit using the USD, how the petrodollar is doomed, how the entire US economy is doomed once the usd is dropped, how the Zimbabwean dollar, the Argentian peso, the bolivar, the Iranian rial and other, can we even all them currencies? will definitely replace the dollar for trade settlements. And, if you're not so bright, it makes perfect sense, the evil greenback is holding the economies of emergent countries down, it's not corruption, it's not stupidity, it's not the lack of planning, the one who is to blame is the $.
So, some leaders have come up with the idea, let's trade in our currency and prosper! Except for the fact that when you leave the realm of politics and propaganda for your voters and you enter the realm of economy, well, shit happens!
https://www.businesstoday.in/latest/in-focus/story/we-need-to-use-this-money-russia-says-it-is-unable-to-utilise-billions-of-indian-rupees-380345-2023-05-07
And the whole thing is pretty simple:
- there is no perfect trade balance between two countries, one will run a trade deficit with the other so one will end with a ton of useless monopoly money
- in order to use the monopoly money to trade with country C it would need to either convert them to a hard currency that everyone wants like the $, or to the other country's fiat but at this point, you would have to trick them into accepting your surplus useless currency and who would want that?
Anyone who has read a bit of history would know about the Weimar inflation, it was caused mainly because Germany printed monopoly money to exchange them for $, and thus their own currency failed, because nobody wanted the Papiermark. And this is where we arrive to exactly the bilateral India-Russia trade:
Simple as that, ruble-rupee trade is good until you need to use all those money, and for the use, you have to exchange it into a trustable currency, at which point you realize nobody is taking monopoly money India can print unrestrained for good old $!
The chances of more countries using their useless fiat in order to settle trades?
Just as much as every single one of you denying a Bitcoin payment and choosing to be paid in PooGrow, which is an actual coin, btw!
So, some leaders have come up with the idea, let's trade in our currency and prosper! Except for the fact that when you leave the realm of politics and propaganda for your voters and you enter the realm of economy, well, shit happens!
https://www.businesstoday.in/latest/in-focus/story/we-need-to-use-this-money-russia-says-it-is-unable-to-utilise-billions-of-indian-rupees-380345-2023-05-07
And the whole thing is pretty simple:
- there is no perfect trade balance between two countries, one will run a trade deficit with the other so one will end with a ton of useless monopoly money
- in order to use the monopoly money to trade with country C it would need to either convert them to a hard currency that everyone wants like the $, or to the other country's fiat but at this point, you would have to trick them into accepting your surplus useless currency and who would want that?
Anyone who has read a bit of history would know about the Weimar inflation, it was caused mainly because Germany printed monopoly money to exchange them for $, and thus their own currency failed, because nobody wanted the Papiermark. And this is where we arrive to exactly the bilateral India-Russia trade:
Quote
Russian Foreign Minister Sergei Lavrov on Friday said that Russia has accumulated billions of rupees in Indian banks which it can’t use. This is a problem, Lavrov told reporters in Goa on the sidelines of the Shanghai Cooperation Organization (SCO) meeting, reported Bloomberg.
“We need to use this money. But for this, these rupees must be transferred in another currency, and this is being discussed now,” he said, as per the report.
“We need to use this money. But for this, these rupees must be transferred in another currency, and this is being discussed now,” he said, as per the report.
Simple as that, ruble-rupee trade is good until you need to use all those money, and for the use, you have to exchange it into a trustable currency, at which point you realize nobody is taking monopoly money India can print unrestrained for good old $!
The chances of more countries using their useless fiat in order to settle trades?
Just as much as every single one of you denying a Bitcoin payment and choosing to be paid in PooGrow, which is an actual coin, btw!
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