Topic: People keep talking how weak dollar and how bad usa economy getting - page 6. (Read 962 times)

It's really funny to see the type of weird views some people have of the world and the things that are happening in it. OP basically says that "because US supposedly owns a lot of gold, creation of an alternative payment system is impossible". It is even funnier when you look at the name of this forum and realize that it is a Bitcoin forum, a place where we discuss "an alternative payment system" called Bitcoin that is not backed by anything like gold and it was created and it is successful and every day it is growing
By the way United States doesn't like Bitcoin either.

In any case, dedollarisation is happening whether some people or even US itself accepts it or not. It didn't start last year and it won't mature soon but it is happening.

The BRICS gold backed currency hasn't yet come to fruition, it's a mere proposal: https://cointelegraph.com/news/gold-backed-brics-currency-very-hard-to-deliver-lyn-alden

And essentially the problem is that the world relies on fractional reserve banking and future GDP growth is entirely based on debt, so it makes it logistically difficult. Even absent of a gold backed currency, USD is still on a decline. There are other attractive options if countries are seeking a stable asset.

People need to understand its not about the power of the currency but the power of the nation at play here. In a nation with hundreds of thousands of drug addicts and homeless people, I really do not think that USA could still say that they are doing a good job, its obvious that they may look strong financially but that's mainly because their rich are richer than any other nations rich, but their poor are equally poor as any other nation. Like the guy that is staying at the beach of san Francisco or something, that dude is as poor as any other person, maybe has a "potential" that is higher, but must die due to drug overdose anyway. This will financially ruin USA in the near future, they are losing it big time.

I'm not sure if I fully understand the op's text because of how it's built grammatically and structurally, but I think I agree overall. It's just a simple reality check. The USD is still very high up by international currency reserves, and none of the BRICS countries are anywhere near that. China is a formidable adversary in terms of overall political and economic influence, but not currency-wise. Russia is still living off its association with the might of the Soviet Union, but it has the economy less than that of Texas. It's very militarily aggressive, and thus it needs to be taken seriously, but competing with the US dominance and the USD dominance is simply unrealistic.

I am not a fan of the dollar because, due to this currency, my country has been stuck in a debt cycle. We have to pay interest, which is way more than the principal amount just due to inflation and interest rates, and mainly because we took the loan in US dollars. I hope my country has educated people in the loan sector. I mean the financial sector, but every single person is corrupt at higher levels.

What could be done? Well, the point is that I am not praising the dollar just because I like it or want it to be on top forever; instead, I know how much potential it has and how much effort BRICS have to make to cross it.

As you said, the US dollar still dominates and has great power today. Beating them is not easy, it takes hard work because the dollar has been the world's currency for more than 50 years. But in my opinion, it will be more dangerous if no country fights against the hegemony of the US dollar, then their dominance will get stronger.

However, what the BRICS group is doing is a long step that needs to be taken so that the US dollar does not print money at will. Everything in this world has its supporters and opponents. So, maybe the BRICS is not yet a group that is dangerous and has a big influence on USD dominance, but in 10 or 20 years, no one knows the results yet, while statistics say Russia and China will experience rapid economic growth starting in 2030

In addition, many observers predict that sooner or later the dollar's dominance will collapse

I think that the fact that many international transactions are carried out in dollars is a reflection of its stability and acceptance in international markets. Adamas The concentration of control in financial markets, including gold, is a significant aspect that can influence global economic dynamics.


Bilateral trade using local currencies may actually diminish the ability of a country, such as the United States, to directly control certain aspects of international trade; if countries are exchanging goods and services using their own currencies, this may limit the influence that the dollar traditionally has in international markets.. Concerns that may arise from these dynamics could be related to the loss of influence in global markets and the need to adapt to new ways of competing and participating in the global economy... Therefore, the evolution towards a more multipolar and diversified system has the potential to redistribute economic and financial power in ways that may not be entirely predictable.

You mean gold-backed fiat currency? Why do you think it's an impossible scenario exactly? US had a gold-backed dollar for quite a long time until 1971. They moved away from it (and many consider that a mistake) but it's not like having such currency is impossible.

Money today and maybe for the next 25 years will not be backed by gold. Who knows what BRICS are planning but sure they couldn't just jump into a fiat-backed gold currency. One thing is for sure though and it's currently happening that countries today are bilaterally trading with their own currency and not USD.

If they are using their own currency to buy oil and commodities from each other, how can the US control that?   And if they could control that, why are they so worried?

I find it good that you think you belong to the category of smart people and your children will be too. Unfortunately, not everyone is smart, and there are still those who believe in a unipolar world. Even those who support the alliance of Russia and China believe in eliminating the US-European pole, and therefore believe in a unipolar world that is not led by America, and this, in my opinion, is the biggest mistake that anyone in the position of analysis makes.
The competition between the two poles is what can achieve stability in the global economy without this reaching the point of conflict. Just as it is important to diversify the forces between the poles of the planet, it is also important to diversify the currencies used in world trade. This does not mean completely abandoning the use of the dollar or replacing it with any other currency. Rather, the use of several currencies will help in the recovery of the current financial system, which suffers from successive crises due to the concentration of power in the dollar.

I think the USA and some of the western countries are going to receive some push back from the BRICS countries, because BRICS are growing and more countries are joining it.

The USA are not the only country in the world that were affected by the impact of the war between Russia and the Ukraine. The Covid pandemic started a global meltdown in the economy of all the countries....and the war just made things worst. 

Majority of golds in Europe and the US didn't originate from their. They were mined in Mexico, Central America, South America and Africa and shipped to Europe and the US. There are no statistics on the amount of unmined gold deposits that still reside in these nations. There have been report of vast gold deposits in some parts of Africa. But according to to statistics by statista Australia, Russia and South Africa.has the highest gold reserves. The gold market can crumble if the market is flooded with suppliers.

https://www.statista.com/statistics/248991/world-mine-reserves-of-gold-by-country/

It is better to have two shops selling bread than to have just one monopolizing the market. We need global competition among leading nations so that developing nations will have alternatives to choose from.

Maybe you'll get higher quality discussion if you bring some reports or articles to discuss instead of saying relatively biased sentences like this. Don't get me wrong, I do believe any superpower country can control the price of an asset, but it is unlikely that their competitors don't know or don't do the same thing. At the end of the day, as a retail user, it is better to just expect both sides to win and prepare how you'll deal with the effects of their drama on your life.

Or perhaps we're the fools. The joke's probably on us for choosing sides and defending them as if they're not part of the same fiat circus. Fiat is backed by nothing. That's the truth. Whether that's the Russian ruble or the Chinese yuan or the American dollar, they're all nothing but debts. The monetary standard we have today is nothing but foolery. Is there a currency right now that is fully backed by gold? Nothing.

Wherever you got it, forget about that rumor that BRICS would come up with a currency backed by gold. That's not going to happen.

Anything that we say here maybe don't have significant effect to what will happen in the future, let say we support dollar and say a good thing about it, it will be good sentiment that can make some people to keep save dollar. but country's regulation may bring significant effect that influence people behavior, people who trade in the world market always looking for profit, so I think if a currency can give them extra benefits such as profit, increasing value, or safeness then they will choose that currency.

It's going to be a whole new system for those that have been joining the new alliance of BRICS. Whatever they think is going to benefit them with mutual agreements, that's where they're going.

While for those countries that are coming into this partnership and alliance, they're all thinking of what's beneficial for them.

And you'll see that when the USA/UK and G7 alliance comes again on their own, who knows that those countries that are into BRICS might join them in as well. I am not into any of those alliances but I am saying whatever alliance a country sees beneficial for them, they will go there.

Sure, but the question is if the US influence/power is getting stronger or weaker.
They have the strongest military, but it's a well-known fact that they've been struggling with recruitment. Most of their military recruits are openly there only for the money, free education and other benefits. They wouldn't be willing to die for their country. So in case of a full-blown military conflict, US would have to solely rely on the superiority of their technology and on their nuclear power.



Gold price can be manipulated but only to some degree. When the price of paper gold and the actual, physical gold are going in opposite directions, everyone will see through it.
As for the actual gold holdings, US is by far the largest holder. UK holds a lot on behalf of other countries. The problem is that those reserves have not been properly audited. There's a long-lived rumour that declared US reserves are massively overstated. If that's true - I don't know, but if significant amount was indeed missing, they'd never admit it, as it'd be against the national interest.

USA only holds the top spot of stats like GDP not by producing more real tangible products than rival countries.. but by fudging the numbers by printing money
they treat debt as an asset.

the US printed money to fudge their numbers as bigger. then declined to accept imports from rival countries who actually make products to make other countries numbers look worse.
but its just a bait and switch of bad accounting and thus is not realistic to real world produce exchanging hands(like food and material goods)

put it short
when america only has 330m population.. and india has 4x that in population.. how many loaves of bread do you think exchange hands and are produced. i guarantee you india win based on many products produced and sold.

DOLLAR is not top power because of value or or reasoning of trade. its top power due to politics, debt, false accounting and of law determining that other countries should measure their value/produce stats on american terms/conditions..

things like BRIC's want to have a different measuring stick

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here is the thing

if a shop sells a loaf of bread for $200.. and people dont like it.. they create their own shop to sell more bread for [insert anything reasonable] to alot more populous

and thats what BRIC's is doing. setting up a new shop(market) with new prices

by america closing doors to the Middle east, Asia and Slavic countries its actually imprisoning itself

just count up the population of USA, canada, EU(under 1bill)
then count up the population of those countries forming BRIC's and you will see where the gross domestic PRODUCT totals will exceed which

Sure it makes a lot sense only for uneducated people and those who dont Understood how the markets works and financial fundamentals and mechacally how it works.
Off course Putin and chinh ping saying that they are against usa and west but the Same time they flash with gold backed currency around and tell to world they are so genius....but gold is controlled by USA and UK and USA are the biggest gold holder aswell.
World markets derivates futures contracts Are controlled by USA so until china or russia has no control over that they can't never beat the USA and to come out with so follish thing like bricks backed by gold ...it only shows that they think people around the world dont Understood nothing , but they dont Understood people getting smarter now days for example me Im very smart and my kids Will be also very smart.

But one of the biggest crises of the dollar is that although the United States has the largest reserves of gold, the dollar is being printed at rates that exceed the reserves of gold allocated for that. There is a real crisis and everyone is aware of that. It can be said that the global economy is currently stuck with the dollar.

After Putin's statements today at the conclusion of the BRICS summit about proposing unified currencies for the BRICS group, and after the increase of the BRICS member countries to include major global economies, I think this sounded the alarm for the dollar that still believes in the strength of the dollar.