We almost (might have) lost reserve currency status

[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.

Nope, Biden, like his Dem predecessors, left the country better than he found it. why is it always the Dems who have to clean up after the GOP crashes the economy? When will the voting public learn?

[Anonymous]

Anonymous wrote:

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.

We know that. It's happening right now. But it's not happening because of the BRICS or Russia. It's happening because of what the clowns in power did to our allies and friends. For some reason our politicians have decided to throw away the entire post-WW2 global order that we created and that benefits us more than any other country.

[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.

Honest question. What does one do with a gold bar?

[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.

If Americans do that en masse, won’t that just make it worse?

[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.

How?

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

Honest question. What does one do with a gold bar?

More common would to be gold bullion coins, issued by the U.S. Mint (e.g., 1 once Gold Eagle). You'd buy it and hold it as a store of value; you could later sell it at a coin shop or online retailer like APMEX for whatever the value is at the time, likely more than today.

The idea is that gold generally holds its value. Today, an American Eagle 1 ounce gold coin is worth about $3,000 (a little more actually). So, to buy a used 2012 Honda Civic today for about $6,000 USD, you'd need the equivalent of two 1 ounce gold coins.

If the dollar rapidly loses value to the point where that 2012 Honda Civic costs $20,000 USD, and if (and it's an "if" because nothing is guaranteed) gold held its current value, gold would be expected to be worth around $10,000 per ounce. But in theory, you could take two gold coins, sell them for $20,000 and then go buy your Civic.

That's what you do with gold -- you hold it as a store of value, and convert it to dollars when you need to spend some of that value.

[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.

How?

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

Honest question. What does one do with a gold bar?

And "buy crypto?" Really? Bitcoin and Ethereum are way down since Trump took office.

[Anonymous]

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 do we prepare? Move to a BRICS country??

[Anonymous]

Anonymous wrote: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!

The main reason countries want to hold dollars is they can buy oil with it.
Most countries need oil, Saudi Arabia and oil rich countries use it.
We have a deal with Saudi Arabia since the Seventies where they take dollars as payment and we provide protection.
But, after they so what we did to Russia all rich dictatorships got nervous and started diversifying even more after Trump.

[Anonymous]

Anonymous wrote:So, trying to understand: Trump was fine with the market crashing as long as it was a vehicle to bring rates down, by way of getting people to invest in traditionally safe bonds. (The ultimate goal likely being tax cuts.)

The working assumption was that bonds would never be anything but safe.

But in a sign of how much credibility Trump has lost, bonds were not, in fact, safe — the bond market itself was tanking. So he backed off, sort of, but now we know something important that we hadn’t: The world no longer considers the US a safe place to put any money.

Do I have this right?

Pretty much. Bond markets decided they don’t trust U.S. debt anymore. The next day Congress cleared the way to add $6 trillion more to the deficit. Interest rates are going to be astronomical.

https://www.cato.org/blog/senate-plan-trap-house-lawmakers-shouldnt-fall-it

So much for “fiscal conservatives”

[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.

How?

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

Honest question. What does one do with a gold bar?

It’s protection from inflation. Nations can create currency from nowhere crypto was created from nowhere but gold is tangible currency all over the world for super long time.
Look at the graph above.

[Anonymous]

Anonymous wrote:The house passed the two trillion dollars tax cuts yesterday

Closer to 6 trillion. Will probably be the most expensive piece of legislation in U.S. history.

https://www.crfb.org/blogs/senate-budget-could-enable-unprecedented-deficit-increase

[Anonymous]

Anonymous wrote:

Anonymous wrote:So, trying to understand: Trump was fine with the market crashing as long as it was a vehicle to bring rates down, by way of getting people to invest in traditionally safe bonds. (The ultimate goal likely being tax cuts.)

The working assumption was that bonds would never be anything but safe.

But in a sign of how much credibility Trump has lost, bonds were not, in fact, safe — the bond market itself was tanking. So he backed off, sort of, but now we know something important that we hadn’t: The world no longer considers the US a safe place to put any money.

Do I have this right?

Pretty much. Bond markets decided they don’t trust U.S. debt anymore. The next day Congress cleared the way to add $6 trillion more to the deficit. Interest rates are going to be astronomical.

https://www.cato.org/blog/senate-plan-trap-house-lawmakers-shouldnt-fall-it

So much for “fiscal conservatives”

One of the theories embraced by the self-aggrandizing maga intellectuals like tanvi ratna, was that trump’s tariffs would help reduce our debt, revitalize manufacturing and lower rates. The tariffs would shock the stock market, causing investors to pour money into bonds, lowering the yields and allowing the fed to cut interest rates. Doge would cut a sizeable chunk, paving the way for tax cuts. Industry would blossom under tariffs.

The wheels fell off this model from the jump. Doge is realizing they can’t cut as much as they thought, interest rates will rise, inflation will rise, and stockholders trust Greek treasury bonds than U.S. bonds. Pretty bad.

[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.


How?


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


Honest question. What does one do with a gold bar?


More common would to be gold bullion coins, issued by the U.S. Mint (e.g., 1 once Gold Eagle). You'd buy it and hold it as a store of value; you could later sell it at a coin shop or online retailer like APMEX for whatever the value is at the time, likely more than today.

The idea is that gold generally holds its value. Today, an American Eagle 1 ounce gold coin is worth about $3,000 (a little more actually). So, to buy a used 2012 Honda Civic today for about $6,000 USD, you'd need the equivalent of two 1 ounce gold coins.

If the dollar rapidly loses value to the point where that 2012 Honda Civic costs $20,000 USD, and if (and it's an "if" because nothing is guaranteed) gold held its current value, gold would be expected to be worth around $10,000 per ounce. But in theory, you could take two gold coins, sell them for $20,000 and then go buy your Civic.

That's what you do with gold -- you hold it as a store of value, and convert it to dollars when you need to spend some of that value.

Gold in and of itself is just a mineral that comes out of the ground. Better to buy a mineral like lithium that is actually used in making batteries. Or graphite. Those things can actually be turned into useful products. Gold is just a shiny thing mostly. It was valued for its shininess and "pretty". Those days could end.

[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 do we prepare? Move to a BRICS country??

Little late now.

The time to prepare was decades ago by telling your congresscritter not to spend stupidly.

Yes, it will be different. Like Venezuela different.

[Anonymous]

If markets are questioning the US reserve currency it is already gone.