China, Brazil strike deal to ditch dollar for trade
www.straitstimes.com
It's Beijing’s latest salvo against the almighty greenback. Read more at straitstimes.com.

China and Brazil have reached a deal to trade in their own currencies, ditching the US dollar as an intermediary

The deal will enable China, the top rival to US economic hegemony, and Brazil, the biggest economy in Latin America, to conduct their massive trade and financial transactions directly, exchanging yuan for reais and vice versa instead of going through the dollar.

:xicko:

Now the Belt and Road Initiative, please

  • stinky [any]
    ·
    2 years ago

    Wow. First, thanks for the explanation.

    the government cannot print too much money, or else people will start exchanging them for dollars and your currency will lose its value.

    And people do this because USD is safer. If your country is printing too much money, it means it needs to do something which it cannot currently afford and so it’s value is going to go down (wrt USD) so people buy USD as quickly as possible?

    The more central banks store their earned dollars in US treasuries, the more US can spend to get its free lunch anywhere on earth.

    O.O

    So, wait, the US basically did alchemy and converted dollar into gold - the one thing guaranteeing currencies remain compatible - but the US is the only one capable of making more of this new gold, and making it basically out of thin air with no effort needed.

    And… the rest of the world just went along with it? Why didn’t the USSR do something? This was the 70s, right? They weren’t that stagnating yet. And China was still non-Nixoned.

    What happens today if the US decides to print $1 trillion to, idk, buy Greenland. That would still decrease the value of USD right? But that’s not a threat anymore? What if China or another country tries to do the same? Will they face greater repercussions?

    I will def check out that book and Michael Hudson’s other works.