We almost (might have) lost reserve currency status

[Anonymous]

Anonymous wrote:

Anonymous wrote:What do you think happens when the US dollar becomes non reserve currency ?

Take a guess

It will be like Canadian dollar.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I know we have a lot of tariff threads. I’m shocked more people are not aware or are talking about why Trump reversed course.
His tax cuts!!!

When the markets tanked on Wednesday two crazy things happened, one item was particularly bad.
Normally during market crashes there is a “flight to safety” to US Treasury bonds. That causes rates to go down because there is so much demand.

Instead rates went up, meaning no one wanted US Treasuries because the finance bros didn’t feel the US was safe!

This is something Trump talked a lot about, slowing the economy to refi debt at lower rates….. the exact opposite happened in real time. Rates went by 1% which is massive.

That lack of flight to safety means, the US was no longer the world’s currency.

That also means rates were going to spike and the 1T tax cut would not pass. Meaning Trumps signature legislation would not have passed. I see all the market manipulation threads and posts, but the real story is the failed treasury auction.

That means higher rates for CC and mortgages.

I know people only look at the stock market or sensational stories…. But the real story is the US might have lost our reserve currency status and worst of all our President proved his priorities (tax cuts) and that he was weak…. We might not recover from liberation day.

This should not be a political discussion in a political thread, but it should scare everyone!

I agree, OP. Trump has really screwed the US

Actually, Biden screwed us. He used the dollar as a weapon against Russia for its invasion of Ukraine.

Now other countries are taking note and re-evaluating if they want to hold the reserve currency that can be weaponized against them anytime they cross the U.S.

Sorry to be the bearer of bad news to you. You democrats were told this might happen when you did it, but it felt so good then, huh?

When Biden left office, the US Economy and the Dollar were the envy of the world. A very strong position that has NOTHING to do with Russia invading Ukraine.

Envy? Whatever you have to tell yourself.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Some of you might not like it but started to accelerate with sanctions of Russia and confiscation of Russian assets.
Instead of the dollar being seen as neutral reserve currency in sent a strong signal no body is safe to China and rich middle eastern countries.
The BRIC nations started accumulating gold and started trading in their local currency.
It was like shooting ourself in the foot and with tariffs Trump is accelerating the decline.

That dog don’t hunt. Bond markets react quickly. It doesn’t take years. This is directly correlated to Trump’s insanity/dementia and the GOP-run Congress. No one cares about Russia’s piddly little economy. Remember it’s about a third of California’s economy. About a third of Texas’ or New York’s.

It’s a slippery slope and the Chinese and the Saudi's looked and said it could be us next.
The BRIC nations started trading in the local currency and increased gold holdings.
Trump just increased the pace.
Biden and Trump did it together.

[Anonymous]

Anonymous wrote:How the hell are Fortune 500 CEOs not beating down his door?

He's wrecking the USD, which is the bedrock foundation for American business dominance. Without the USD as a hegemon, US companies are weakened.

They are. We just aren't hearing about it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Some of you might not like it but started to accelerate with sanctions of Russia and confiscation of Russian assets.
Instead of the dollar being seen as neutral reserve currency in sent a strong signal no body is safe to China and rich middle eastern countries.
The BRIC nations started accumulating gold and started trading in their local currency.
It was like shooting ourself in the foot and with tariffs Trump is accelerating the decline.

That dog don’t hunt. Bond markets react quickly. It doesn’t take years. This is directly correlated to Trump’s insanity/dementia and the GOP-run Congress. No one cares about Russia’s piddly little economy. Remember it’s about a third of California’s economy. About a third of Texas’ or New York’s.

It’s a slippery slope and the Chinese and the Saudi's looked and said it could be us next.
The BRIC nations started trading in the local currency and increased gold holdings.
Trump just increased the pace.
Biden and Trump did it together.

No. Biden did not do it. The lack of trust in the dollar is all due to Trump's self-inflicted chaos. Stop living in denial.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Some of you might not like it but started to accelerate with sanctions of Russia and confiscation of Russian assets.
Instead of the dollar being seen as neutral reserve currency in sent a strong signal no body is safe to China and rich middle eastern countries.
The BRIC nations started accumulating gold and started trading in their local currency.
It was like shooting ourself in the foot and with tariffs Trump is accelerating the decline.

That dog don’t hunt. Bond markets react quickly. It doesn’t take years. This is directly correlated to Trump’s insanity/dementia and the GOP-run Congress. No one cares about Russia’s piddly little economy. Remember it’s about a third of California’s economy. About a third of Texas’ or New York’s.

It’s a slippery slope and the Chinese and the Saudi's looked and said it could be us next.
The BRIC nations started trading in the local currency and increased gold holdings.
Trump just increased the pace.
Biden and Trump did it together.

It's the bipartisanship everyone claims they want to see more of.

Biden made it that we cut you off financially if we don't like you and Trump let everyone know we don't like them.

The world is acting accordingly now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The U.S. dollar's days as a reserve currency were numbered from the moment the Biden Administration weaponized it by seizing Russia's dollar reserves (basically telling Russia "the dollars you have aren't any good anymore until we tell you they're good").

No sane country -- certainly not the powerful countries like China, India, Saudi Arabia, Brazil, etc., would ever count on U.S. dollars being a reserve currency after that move.

This doesn't mean the end, though. A country doesn't need to control the international reserve currency to be wealthy and successful. It's just going to be different from now on. Prepare accordingly.

Don’t break international law by invading another country and your dollars are fine.

Setting aside the invasions of Iraq and Afghanistan, the bombing of Libya, U.S. troops in Syria, the bombing of Yemen, and the current threat of more bombing in Iran, none of which were sanctioned by the U.N. ...

It doesn't matter. Other countries don't want to hold a "reserve currency" that can be turned off at the flip of a switch by whatever the U.S. thinks is bad behavior. Whether it's China in Tibet (or one day, Taiwan), Russia in Afghanistan (again), Saudi Arabia at war with Yemen (again), India having a war with Pakistan, or even the EU taking its own approach to the Ukraine/Russia war independent of what the United States does, etc., no country wants to be subject to permission from the United States to conduct military operations or foreign affairs.

It doesn't matter if you hate Russia. Nobody cares. Nobody is forced to use the U.S. dollar. And increasingly, they won't.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The U.S. dollar's days as a reserve currency were numbered from the moment the Biden Administration weaponized it by seizing Russia's dollar reserves (basically telling Russia "the dollars you have aren't any good anymore until we tell you they're good").

No sane country -- certainly not the powerful countries like China, India, Saudi Arabia, Brazil, etc., would ever count on U.S. dollars being a reserve currency after that move.

This doesn't mean the end, though. A country doesn't need to control the international reserve currency to be wealthy and successful. It's just going to be different from now on. Prepare accordingly.

How?

Buy gold. Buy bitcoin. Consider foreign stocks. Invest in things whose value isn't linked to the U.S. dollar.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Some of you might not like it but started to accelerate with sanctions of Russia and confiscation of Russian assets.
Instead of the dollar being seen as neutral reserve currency in sent a strong signal no body is safe to China and rich middle eastern countries.
The BRIC nations started accumulating gold and started trading in their local currency.
It was like shooting ourself in the foot and with tariffs Trump is accelerating the decline.

That dog don’t hunt. Bond markets react quickly. It doesn’t take years. This is directly correlated to Trump’s insanity/dementia and the GOP-run Congress. No one cares about Russia’s piddly little economy. Remember it’s about a third of California’s economy. About a third of Texas’ or New York’s.

It’s a slippery slope and the Chinese and the Saudi's looked and said it could be us next.
The BRIC nations started trading in the local currency and increased gold holdings.
Trump just increased the pace.
Biden and Trump did it together.

No. Biden did not do it. The lack of trust in the dollar is all due to Trump's self-inflicted chaos. Stop living in denial.

DP it is all Trump. Trump killed NATO and turned the US economy away from Europe(25 trillion GPD), Japan, South Korea, Australia, Canada, Taiwanand Mexico for Russia(2 trillion in GDP). He also has destroyed trade with China(17 trillion GDP). China will make a deal with Europe ans the rest of them. The US is on the outside looking in in. Why would the US currency be used by these other countries.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Some of you might not like it but started to accelerate with sanctions of Russia and confiscation of Russian assets.
Instead of the dollar being seen as neutral reserve currency in sent a strong signal no body is safe to China and rich middle eastern countries.
The BRIC nations started accumulating gold and started trading in their local currency.
It was like shooting ourself in the foot and with tariffs Trump is accelerating the decline.

That dog don’t hunt. Bond markets react quickly. It doesn’t take years. This is directly correlated to Trump’s insanity/dementia and the GOP-run Congress. No one cares about Russia’s piddly little economy. Remember it’s about a third of California’s economy. About a third of Texas’ or New York’s.

It’s a slippery slope and the Chinese and the Saudi's looked and said it could be us next.
The BRIC nations started trading in the local currency and increased gold holdings.
Trump just increased the pace.
Biden and Trump did it together.

It's the bipartisanship everyone claims they want to see more of.

Biden made it that we cut you off financially if we don't like you and Trump let everyone know we don't like them.

The world is acting accordingly now.

We put ourself in a box.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The U.S. dollar's days as a reserve currency were numbered from the moment the Biden Administration weaponized it by seizing Russia's dollar reserves (basically telling Russia "the dollars you have aren't any good anymore until we tell you they're good").

No sane country -- certainly not the powerful countries like China, India, Saudi Arabia, Brazil, etc., would ever count on U.S. dollars being a reserve currency after that move.

This doesn't mean the end, though. A country doesn't need to control the international reserve currency to be wealthy and successful. It's just going to be different from now on. Prepare accordingly.

Don’t break international law by invading another country and your dollars are fine.

Setting aside the invasions of Iraq and Afghanistan, the bombing of Libya, U.S. troops in Syria, the bombing of Yemen, and the current threat of more bombing in Iran, none of which were sanctioned by the U.N. ...

It doesn't matter. Other countries don't want to hold a "reserve currency" that can be turned off at the flip of a switch by whatever the U.S. thinks is bad behavior. Whether it's China in Tibet (or one day, Taiwan), Russia in Afghanistan (again), Saudi Arabia at war with Yemen (again), India having a war with Pakistan, or even the EU taking its own approach to the Ukraine/Russia war independent of what the United States does, etc., no country wants to be subject to permission from the United States to conduct military operations or foreign affairs.

It doesn't matter if you hate Russia. Nobody cares. Nobody is forced to use the U.S. dollar. And increasingly, they won't.

If that's the case then why is the Euro, Pound and Yen not tanking? They imposed the same sanctions.

Why is the Rial, Ruble, Rupee, Rand and Renminbi dropping if they're selling dollars.

Face it, Russia is irrelevent. This is happening because we starting slinging poop at our allies because the big brains in Congress gave all power to a chimpanzee.

[Anonymous]

Currency is tied also to foreign policy and relations. If someone holds the reserve currency, think about what you would do, if you had no faith that currency remains stable, you'd want to substitute it too!

This is 1000000% based on Trump's craziness v American economic status/market. Nobody can argue with American power. The issue is not the cards we hold, it's the person playing the game. Nobody wants to play with him!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The U.S. dollar's days as a reserve currency were numbered from the moment the Biden Administration weaponized it by seizing Russia's dollar reserves (basically telling Russia "the dollars you have aren't any good anymore until we tell you they're good").

No sane country -- certainly not the powerful countries like China, India, Saudi Arabia, Brazil, etc., would ever count on U.S. dollars being a reserve currency after that move.

This doesn't mean the end, though. A country doesn't need to control the international reserve currency to be wealthy and successful. It's just going to be different from now on. Prepare accordingly.

Don’t break international law by invading another country and your dollars are fine.

Setting aside the invasions of Iraq and Afghanistan, the bombing of Libya, U.S. troops in Syria, the bombing of Yemen, and the current threat of more bombing in Iran, none of which were sanctioned by the U.N. ...

It doesn't matter. Other countries don't want to hold a "reserve currency" that can be turned off at the flip of a switch by whatever the U.S. thinks is bad behavior. Whether it's China in Tibet (or one day, Taiwan), Russia in Afghanistan (again), Saudi Arabia at war with Yemen (again), India having a war with Pakistan, or even the EU taking its own approach to the Ukraine/Russia war independent of what the United States does, etc., no country wants to be subject to permission from the United States to conduct military operations or foreign affairs.

It doesn't matter if you hate Russia. Nobody cares. Nobody is forced to use the U.S. dollar. And increasingly, they won't.

If that's the case then why is the Euro, Pound and Yen not tanking? They imposed the same sanctions.

Why is the Rial, Ruble, Rupee, Rand and Renminbi dropping if they're selling dollars.

Face it, Russia is irrelevent. This is happening because we starting slinging poop at our allies because the big brains in Congress gave all power to a chimpanzee.

The euro, pound, and yen do not have a turbo-boost in their value due to being the world's reserve currency. The U.S. dollar has had a "plus up" in its natural value due to being the global reserve currency. The era of the dollar being the world's reserve currency is coming to an end -- some think it will happen very quickly, others more slowly -- but it's coming to an end. That will remove the bonus value that the dollar has enjoyed effectively since WW2 and the value of the dollar will sink until it's fairly valued without that plus-up.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I know we have a lot of tariff threads. I’m shocked more people are not aware or are talking about why Trump reversed course.
His tax cuts!!!

When the markets tanked on Wednesday two crazy things happened, one item was particularly bad.
Normally during market crashes there is a “flight to safety” to US Treasury bonds. That causes rates to go down because there is so much demand.

Instead rates went up, meaning no one wanted US Treasuries because the finance bros didn’t feel the US was safe!

This is something Trump talked a lot about, slowing the economy to refi debt at lower rates….. the exact opposite happened in real time. Rates went by 1% which is massive.

That lack of flight to safety means, the US was no longer the world’s currency.

That also means rates were going to spike and the 1T tax cut would not pass. Meaning Trumps signature legislation would not have passed. I see all the market manipulation threads and posts, but the real story is the failed treasury auction.

That means higher rates for CC and mortgages.

I know people only look at the stock market or sensational stories…. But the real story is the US might have lost our reserve currency status and worst of all our President proved his priorities (tax cuts) and that he was weak…. We might not recover from liberation day.

This should not be a political discussion in a political thread, but it should scare everyone!

I agree, OP. Trump has really screwed the US

Actually, Biden screwed us. He used the dollar as a weapon against Russia for its invasion of Ukraine.

Now other countries are taking note and re-evaluating if they want to hold the reserve currency that can be weaponized against them anytime they cross the U.S.

Sorry to be the bearer of bad news to you. You democrats were told this might happen when you did it, but it felt so good then, huh?

When Biden left office, the US Economy and the Dollar were the envy of the world. A very strong position that has NOTHING to do with Russia invading Ukraine.

Envy? Whatever you have to tell yourself.

"envy of the world" as pronounced by those bastions of liberal rags "the wall street journal" and "the economist"

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The U.S. dollar's days as a reserve currency were numbered from the moment the Biden Administration weaponized it by seizing Russia's dollar reserves (basically telling Russia "the dollars you have aren't any good anymore until we tell you they're good").

No sane country -- certainly not the powerful countries like China, India, Saudi Arabia, Brazil, etc., would ever count on U.S. dollars being a reserve currency after that move.

This doesn't mean the end, though. A country doesn't need to control the international reserve currency to be wealthy and successful. It's just going to be different from now on. Prepare accordingly.

How?

Buy gold. Buy bitcoin. Consider foreign stocks. Invest in things whose value isn't linked to the U.S. dollar.

Tulips: https://www.investopedia.com/terms/d/dutch_tulip_bulb_market_bubble.asp is today's bitcoin.