Topic: Why the us dollar might crash significantly - page 2. (Read 394 times)

If Biden executive were losing vote to fund Ukraine in the House of Representative, moving on to using the frozen Russian assets around European Bank is not the solution. I doubt those Europe Banks will allow it, they wouldn't want to lose their trust and reputation. And not only that, if U.S is actually doing it, it will give another country to do the same thing with any countries that is not in their favor. It will be going back and forth, and keep getting worse.

What you are referring to is not exactly "devaluation", it is just exchange rate dropping because most countries didn't heavily increase the interest rate which would put any economy into recession and put a tremendous pressure on regular people, but US did increase interest rates. That means dollar got artificially higher in comparison to other fiats.
In fact the increased interest rate is an indication of a faster dedollarisation otherwise they wouldn't have had to increase the rates in first place.

Besides, that is not what dedollarisation means. Dedollarisation means countries that were using dollar in their international trades and as their reserve currency, start replacing it with other assets. It could be currency of other countries (eg. Arabs using Yuan to sell their oil) or it could be amassing gold (which is what most countries are doing).

I just wanted to add that Treaty of Versailles was one of the main reasons leading to WW2.... that was equivalent of $442 billion... just saying...

Well, I'm fed up with these big powers that go to war and just spend money on weapons and more weapons, people are dying all the time, inflation is killing us in many ways, and there are many bad things around cause by big powers. I'm fed up with these politicians who just invent new conflicts and make this world even more complicated. At the end of the day, those billions wouldn't even exist if they didn't all work with each other, yesterday partners today enemies... and they still make billions, as usual, on the backs of good and ordinary people. So this is another good reason why we should love and embrace crypto.

I hope that we will see all fiat currencies crashing...

This will just backfire as other countries especially Balkan nations and those who have good relationship with Russia or else those who don't wish to be at risk of going through what happened with Russia because they will take it in a way that it's Russia now and in future if they go against USA or even have any disagreement then their fund would be freezed as well.

IMO neither this has impacted Russia nor had any significant impact on the ongoing war, it would only  cause harm to USD.

they are already at war. but the seizure of Russia's assets will make other countries think their asset is also not safe if they also are going to get involved in this politics. india is currently in conflict because of the regime change attempt which they may also see as possibility that their assets will also be frozen. and this is what OP means today it's just Russia's asset so who will it be in the future?

since this is already a trust issue for other countries, they will prepare for what may come next especially because IMF has power over each country.

if biden does this, it can be predicted that this could trigger russia and its allies to go to war with the us and europe, because even though european authorities have frozen russian assets from moving out of their region, these assets have sovereignty immunity which cannot be taken away. if europe and the us continue to insist on doing this, it would be the same as disturbing russia's sovereignty and war could be a step taken by russia to maintain their sovereignty.

Agreed, following through with this plan could potentially spark a domino effect with the trust of nations and the USD continuing as the WRC. Why not just print that money or hey here is a great idea why doesn't the US Government just get out of this war and funding it in the first place!!!! Its completely barbaric and stupid, President Biden will go down as the worst US President perhaps lol

That was my take too: this is just a partisan attack dressed up as economic analysis. $300 billion is jack squat in the context of the US dollar even if they lit said dollars on fire.

I see in the thread opinions as political posturing that results in being for or against what the OP says. I honestly don't see this affecting either the euro or the dollar. I have been hearing about de-dollarisation for a while now and in the end what is happening is that the rubbish currencies are devaluing even faster than the dollar and people in those countries buy assets to shelter from that devaluation, if they buy a currency for shelter it is mainly the dollar, and if not the euro or other reliable ones, like the Swiss franc.

If this could be done to Russia another high profile country then smaller economy countries will be afraid hence surely find away to move there reserves else where because the effect of the action of Joe Biden can turn to other countries.

Since the world power can seize such an amount (assets) from Russia in the name of helping Ukraine it will surely get to other countries too so they will just have to move away the US dollar and Euros that might end up crashing the currencies as you said earlier.

I don't even see Joe Biden's action to be a way of disrupting the war rather I think is just for a selfish reason that has to do with the US itself.

Though Russia has been doing more harms than God to other smaller force countries from history but I don't see this to be a punishment to Russia. There are other ways to handle such cases.

What can Russia do? Nothing but empty sound! Remember their “heroic” squeals, what will happen if the West supplies weapons to Ukraine? What's the result? NOTHING. Remember their screams: “If you give missiles to Ukraine, we will answer you, you will suffer terrible punishment.” What's the result? NOTHING ! I remember the screams from the Kremlin with threats to stop the supply of gas, oil, frozen Europe and a bankrupt dollar! What's in the toga? NOTHING !
Remember - Russia is a fake country, a country of cheap shit...

The only thing that Russia has done is to show that it is a country that does not keep its word, does not comply with its obligations, its word is an empty phrase. Do you think that you can do business honestly with such people!? As Russia acts, so is how it is treated, and its squeals about compliance with the law in relation to its reserves look comical....

You cannot understand one thing - Russia is a terrorist country. And if she is not stopped in Ukraine, helping Ukraine, she is GUARANTEED to continue her terror, first in Europe and then further. What they are already OPENLY declaring! And as practice in Ukraine has shown, Russia is afraid of only one thing - a strong and painful response. This means you can’t play softly and “gentlemanly” with her - if Russia fired 1 shell at you, fire 10 at her, and then 20 more! And just then she will tuck her tail between her legs and run away screaming. Russia is a vile and cowardly country that can only wage war against a obviously weaker one, or vilely - by committing terrorist attacks. She is not capable of more - study history

Economically, Russia is an empty place in the world economy. What can it influence? Gas? So the EU is already living well without it. Oil ? This way the market will stabilize, and all attempts at economic terror in Russia have failed. And what else in the global economy can Russia influence? No matter what!

How concerned are people around the world about the fall of the dollar because they have their own currency? Even in several official forums, state officials have dared to say that they will no longer be dependent on the dollar.
Here I want to emphasize personally that the financial system will never be stable so that those who understand the working system of fiat currency will never care about what happens to that currency.

The global economy is highly dollarized, hence it will be difficult if not impossible to avoid the dollars in global financial transactions. For now, the dollar has no competition in the global economic space so nations will still be forced to keep their reserves in the US dollar. There have been different efforts to create a currency that will compete with the dollar but none of them have lived up to expectations. Until there is a viable alternative, nations will still have to fall to the dollar, even if they risk losing it because of sanctions.    


Let me explain what the OP was trying to explain. Most countries use the US dollars as foreign reserves and most of them are kept in foreign banks. Russia has huge funds that have been frozen in European banks due to the invasion of Ukraine. OP feels that many countries might be forced to dump the US dollar or the Euro as a reserve currency and also withdraw their assets from foreign banks because these funds could be seized if they ever have disagreements with the West. He is assuming that the fear of confiscation of funds, many nations might start seeking alternatives to the dollars to avoid sanctions.  

Russia is a very big and powerful country so economic ban on their country does not have any bad effect on their country. In the war between Ukraine and Russia, America directly supported Ukraine and directly supplied them with weapons, but they could not make Russia retreat from the war. Russian football has been banned from FIFA and many other economic sanctions have been imposed on the country, but the country's economy is fine because everything is available in their country and some countries are directly dependent on Russia. All the nuclear power plants that have nuclear power plants are directly supplied by Russia, so no country would want their nuclear power plants to shut down, and if they didn't, they would have to maintain their relationship with Russia. Russia is nuclear strong and they are very strong in agriculture so no sanctions can affect them badly.

Which world?
North Korea , Iran and Syria?
Oh, the US is trembling in fear!

You know how much money has already been confiscated and used for Ukraine help by countries who are barely the size of a US state and Russia didnothign but babbling like madman knowing they can't do a thing?

Think for a moment, you have a bully beating up a smaller kid, taking his backpack and when another bigger bully comes and takes the bully phone that guy starts screaming for the world police!! Laughable, right?


Yeah, they already did nationalize what they can, the only difference is that
- no sane people store assets in Russia's bank
- even russian allies store they financial assets in Eu and US banks as they know their current banking system sucks!


Still chewing khat all day to feed your delusions? How's that inflation in Iran doing?

I think it is too soon to speculate about a "significant crash" of US dollar but it is a possibility.

What is certain and we can analyze these days is the dedollarisation. Basically as US regime acts like a dictator on the global scene, more and more countries start thinking about distancing themselves from United States and the dollar. We've already seen this speed up over the past 2 years.

Each time US regime makes more stupid decisions, it pushes more countries into doing "dedollarisation". For example when US sanctioned Russia and seized a lot of their assets, forced businesses to leave the country, etc. many countries started thinking about alternative payment systems.
Another major decision that significantly increased the speed of dedollarisation was the US regime's support of genocide that is still ongoing in Palestine.

This is a process that started many years ago, maybe we could place the start in 2008 which we also have Bitcoin creation that is another form of dedollarisation. It has been slow up until early 2020-2021 and so far in the past 2-3 years it has been speeding up.

Keep in mind that the US national debt is also increasing at an unprecedented rate. They are literally printing trillions in a matter of 2-3 months!
US dollar will continue weakening in the future but a significant crash still requires some additional factors that aren't there yet.

Firstly, it's not just the US, but an international tea that includes people from the EU, the US and Ukraine. Secondly, it was just a recent discussion about the prospects of such a decision, but the implementation is still considered challenging, and the decision hasn't been made yet. More importantly, I don't think it will impact the USD's value and/or stability because that money won't be released into the overall supply but will instead go directly to the Ukrainian fight against Russia (and only if the decision is actually made).
The USD has been very stable lately, and it's the world's global reserve currency, with a very strong dominance on that market (no other currencies are close to challenging it).

This action will just increase the tension between Russia and the West, because that money are mostly owned by rich Oligarchs. These people acquired that money, through their political connections.

The other side of the coin is this ==> That money could help Russia to buy more weapons and ammunition to fund the war against the Ukraine. (I would rather froze those accounts and seize the assets and then use that money to rebuild the Ukraine after the war)    

But at the same time, Russia also has some funds (money) belonging to the United States. And he said that if Biden decides to stop spending frozen money on the war in Ukraine, he will also start spending the money that he has at his disposal. I also wouldn’t want this to happen, I would like there to be an exchange of equivalent amounts, since money belonging to the state should and is located in it.
I would not like an escalation of the conflict, because this would greatly undermine trust, and I think that if such a step were taken, many countries would withdraw their assets from the United States.

US currency is one of the most stable currency around and will be difficult to crash like anticipated since bulk of international trades depends on it.
Removing 300b from Russian will not have any negative  impact on it as is just not that significant enough to crash it. This has been ongoing for 2 years now that they have been clapping down on Russian assets and yet US dollar keep appreciating.