Topic: Ditching US dollar - page 3. (Read 520 times)

Iran and Russia are under sanctions, I don't think they can actually use USD. Maybe illegally, unofficially. But it's a big struggle for such countries. Also, they aren't big economies. Russia is #11 by GDP, but that's less than 10% of the US economy, for example. Iran is much smaller, at #42, with the economy smaller than that of Hong Kong and around the size of what Romania has. So their impact is certainly overestimated by the op. Whatever they do will have zero impact on the USD stability because they are nowhere near being strong enough to do anything about it.

It won't as the poorest citicens won't use that BRICS,
40% but 80% of the poorest citicens live in the BRICS countries,

Of course it's going to badly impact the US dollar, just how severe should be the question you should be asking. These countries that have become part of the BRICS alliance do not have the best relationships with the US ever since, and yet despite that they still depend upon the US economy a great deal. So in that regard I still think there will be a substantial impact upon the US dollar should they continue with the ditching of USD. One can argue that they could bar the US from receiving export and resources like oil, which will severely affect the US economically, but I don't think it's oil that will be the biggest denominator in this battle of attrition really. Especially when the world's turning towards electric vehicles and everything that's automated.

I think what could really affect the US economy here is the prospect of a formidable foe that could thwart the western superpower economically and in the military sector. Much of the countries in the BRICS have their fair share of nuclear warheads and weapons that they can detonate at their disposal and since the US is basically fighting in a 1 vs. everyone situation here, the mutually assured destruction caveat don't apply.

The plan will surely have great impacton the US dollar one of which is hyperinflation.

There is no need to protect the currency, the entire world wishes to have them.
Even the crypto crowd!

Of course, America and Europe will do everything in their power and efforts to protect their currencies, the dollar and euro, in various ways so that they continue to be used as a means of international trade transactions by all countries.

Therefore, any country that tries to weaken their currency, such as China and Russia, must immediately be weakened and destroyed in ways like what we have seen now through trade wars, proxy wars, energy wars, information wars, biological wars and many other wars. which they play with the main aim of protecting their currency interests so that they can continue to rule this world by fooling other human beings into using their currency which is not backed up by gold or worthless paper without any collateral attached to the money. buying petroleum and other things that have useful value are only paid for with play money that is worthless and printed at will, this is truly an abuse that cannot continue. So I think the presence of Brisc is really aimed at weakening the US Dollar. In my opinion, it is good, so that the West's economic and political hegemony over the world is balanced.

What do you mean, "controlling"? Can manipulate? No ? Then they have no influence on the market. Again - even if OPEC/OPEC+ (oil selling countries) are not able to really change the situation on the market, what can we say about a group of countries with a small share of production?
Moreover, China and India are much better off with cheap oil than with expensive oil.

Regarding "If all countries give up the dollar" - 2 simple questions :
1. Why ?
2. What to replace it with ?

Try to answer by giving arguments ?


And lastly, about "40%" of the world This is the 21st century, and it is not very effective to measure the number of population. You can measure by comparing the efficiency of the economy... But even here the BRICS are not doing very well... Even the Chinese economy has now entered the area of crisis, from which they not only can not get out, but the situation is getting worse.
By the way, it seems that China did not manage to fool "BRICS partners", and the theme of "de-dollarization and yuan-ization" did not pass - there were no fools in the BRICS who would agree to "import" the problems of the Chinese economy by switching from the dollar to the yuan.

I don't believe it will have a bad impact on the Dollar globally. Because the position of the US Dollar remains strong until now. If speaking is influenced, maybe it will still have an impact. But maybe not a big impact. But this year I have heard a lot of news regarding a country starting to use their local currency in international trade. especially countries that have trade cooperation with China and Russia. And it seems that Russia naturally does not use dollars in international trade if we remember the relationship between their country and the US. Many of the countries that are members of the BRICS seem to have done this. In the long term, there may be a time when the US Dollar will begin to weaken in global dominance. But I don't think that's any time soon. because currently the Dollar is still the strongest.

With the new members, the new BRICS composition now controls several percent of world oil production. Moreover, with the joining of Saudi Arabia, the United Arab Emirates, Egypt, Argentina and Iran into BRICS, these countries control most of the world's oil production. This clearly has a negative impact on the US dollar.

If all countries do not want to use US dollars and do not buy American bonds and cadev, all countries change US currency to Brics, then the US dollar will definitely collapse because it will no longer be needed for international trade. Moreover, currently the BRICS countries combined represent 40% of the world's population.

It will definitely have certain impact on US dollar. The impact will be great on those countries who will be importing oil using their local currency. Honestly I believe, there should not be one single currency to rule the international trade. That gives too much power to a specific country and give them and upper hand to start war at any part of the world. So if two major oil exporters start taking local currency against their oil, it will reduce the dependency on the US dollar. A great first step towards global peace, maybe!

More and more oil exporting countries need to join the band wagon.

A bit of skewed information.
Both Iran and Russia are pariah countries.
And, of course, they are under sanctions. This means that they have limited opportunities to obtain stable currency for international trade. Moreover, in some transactions, these transactions can be blocked if an international payment system is used.

So they start to think of ways to trade among themselves. And it's not a rejection of the dollar The rejection of the Iranian and Russian dollars sounds like a traveler who found himself in the middle of a potsynia without water and "proudly" shouted "no no no, I don't need water, I refuse it" )

Yes, they will look for alternative ways. Russia tried to promote its fake ruble at first, saying "the whole world will buy oil and gas only with rubles", well you probably laughed then too, just like the whole world Then Russia started selling oil for ayuan and rupees. Everyone laughed here too, because "in public" Russia showed "unprecedented revenues from oil", but in fact - half of rupees can not get until now, and for the rest - can not buy anything. The yuan is a little better, but except for consumer goods, Russia can't get anything in exchange for oil either.
And from Iran Russia needs drones, missiles and shells to continue the terrorist war against Ukraine. Therefore, they will look for some "schemes".... But all this is called "search for a monetary surrogate to try to replace the dollar, which is now not available to rogue countries like Russia and Iran".

Ditching the US dollar or as it is more commonly known: dedollarisation, is a global matter and should not be limited to a country or two doing a trade between themselves. It is also not a new thing, I'd say the start of it was in 1968 when the world started realizing the big American scam known as Bretton Woods (dollar was supposed to be backed by gold with a fixed exchange rate). The last nail in the coffin was in 1971 when Nixon suspended the conversion of dollar to gold. The 70's were very similar to these days and most of the world (specifically Europe) was facing an energy and an economy crisis so they started dumping the dollar and the price of it crashed.

The only thing that kept the scam going was replacing Bretton Woods scam with Petrodollar scam, which is basically US forcing others to trade energy using the dollar!!! It postponed dedollarisation for a long time and in my opinion the next major wake up call was 2008 when US banksters scam that crashed US economy and significantly harmed the global economy forced the world to think about dedollarisation again (fun fact: bitcoin was created in the same period).

But United States used to do all that by being the only power pole in the world and exerting its power through organizations they controlled such as United Nations and International Monetary Funds and many others. Which is why dedollarisation to this day has not been greatly successful.

That means dedollarisation needed the World Order to change. Which it did over the past couple of years. Today US can no longer exert the same power to force countries to use its limitless fiat which they print trillions per 2-3 months at this point!!!
This is why the world is once again moving towards dedollarisation but with better success and determination. And it is not just one or two countries doing that, every single country is doing it but at a different scale. For example a country like Iran that is heavily sanctioned by US is obviously more willing to ditch the dollar than Saudi Arabia that is like the 51st state of America but they both are doing it considering how the Saudi regime is conducting trades with China using Yuan that replaced dollar.
You can see this case by case yourself, for example over the past year many EU members have been trading with Russia using Ruble to evade US sanctions and still buy Russian energy!

Both countries Russia and Iran, can only accomplish ditching the USD if they decide to trade between themselves alone, but we all know that is not a good economic plan. They still need trade relations with other countries that might not be willing to do international trade with another currency other than the USD. In that case if other countries are not willing to accept another currency for international trade, wouldn't that be a flop to them? They need to first rally other OPEC countries and industrial countries like china, to be able to get a head start, or they remain in trading between themselves which will not be favorable to either of them in the long run. US has a lot of influence in many countries, therefore it'll not be easy to replace USD as the dominant force in world currency domination.

The US dollar is highly permeated in commercial transactions and it is not easy for it to be quickly exchanged, whether for any other currency or for gold, but many countries will try to reduce their holdings of the dollar and buy currencies of other countries, which will make the dollar’s contribution to global reserves less than 70%. Then the Fed may give The American view is important for the opinions of other countries and not just for the monetary policy of the United States only.

Of course, if two countries that previously used the US dollar decide to finally do away with it, it will have an impact on the US dollar. They would let go of every single USD in their coffer. They would not be buying any in the future.

But the bigger question is would they be able to fully detach themselves from USD? Will all their trading partners be amenable to avoid using the USD? If not, could they survive trading only with those that are willing to accept their local currency? Are international trading partners willing to deal with an unstable Iranian rial, for example, that has been losing value so fast in the past several years?

To my mind, the gravity of the impact of ditching the USD wouldn't be as heavy on the USD as their very own countries.

You give these politicians way, way, WAY too much credit. There's no chance either has any kind of "plan" like you are implying here, and no US president can "turn off all of the oil" or whatever. If you're actually interested in the price of oil over time there are a lot of factors....

You have to understand the US is possibly playing rope a dope.

Biden is the old fool moron. turns off all the oil. so Russia and Iran pounce.

Sucker move by US as Biden loses next election and

 Donald "mother fucking or should I say daughter fucking" Trump comes in opens up the oil and crushes the Ruble and the brics.

We never can really understand the mind games these assholes play we kind of try to survive them as best we can.

This topic has been discussed for many times in many recent discussions, especially in this board of the forum. With just a simple search, you would have found many answers to your questions, or they could be considered explanations for what is happening.
Despite the difference in opinions on the issue, you can summarize the positions into three types: A type that believes that the power of the dollar cannot be affected by the emerging international alliances and that it is still here to stay. The second type dreams of an era without the dollar, and that this can be achieved soon. The third group is more logical in its analysis and leans towards the idea that monetary systems can coexist, meaning that other currencies can replace the dollar in many functions.

I think that's one the main idea of why those country were forming BRIC in the first place, they want end the dependency toward USD. However, in my opinion at the end of the day they will need one currency as commonly accepted. There was a talk about a new BRIC currency, but that will be a very long road, and almost impossible, until then I think they will used each countries own local currency for trading, or they could use RMB which is more widely accepted currency compared to other BRIC Countries' currency.

They had been trying something like this for a while but I don't think they will have any success because both Iranian Rial and Russian Rubble as dead and will never be accepted by any other countries. Indeed Russia and Iran have really good relationship but they cannot do much by trading in their local currency instead of USD. May be they can just create a new ecosystem backed by something like gold or minerals and use that as trading choice.

Unless there are other major oil and gas exporters like Saudi Arabia, Kuwait and Qatar, USD will not see any impact even if Russia and Iran ditch USD all together.