https://archive.is/2023.04.18-152454/https://www.bloomberg.com/news/articles/2023-04-18/de-dollarization-is-happening-at-a-stunning-pace-jen-says?leadSource=uverify%20wall
The greenback’s share in global reserves slid last year at 10 times the average speed of the past two decades as a number of countries looked for alternatives after Russia’s invasion of Ukraine triggered sanctions, Jen and his Eurizon SLJ Capital Ltd. colleague Joana Freire wrote in a note. Adjusting for exchange rate movements, the dollar has lost about 11% of its market share since 2016 and double that amount since 2008, they said.
“The dollar suffered a stunning collapse in 2022 in its market share as a reserve currency, presumably due to its muscular use of sanctions,” Jen and Freire wrote. “Exceptional actions taken by the US and its allies against Russia have startled large reserve-holding countries,” most of which are emerging economies from the so-called Global South, they said.
Chilean conservatives: "You should put all your saving in dollars cause Boric is going to cause the peso to collapse
The dollar:
Trading in USD is only good if you are absolutely certain that you will never be on the US enemies list. Russia even had huge stockpiles of USD and the US was able to just say "now you don't". Even countries that aren't friends with Russia saw that and were worried.
I don't think it's necessarily about worries of immediate US sanctions, the drop might just be due to another major energy supplier no longer being able to trade in USD. Like seems kind of silly to go "you can no longet buy a large chunk of oil and natural gas in USD" then do a :shocked-pikachu: when people keep less USD on hand.
:shocked-pikachu: a delusional, crumbling and power-hungry US empire taking its allies for granted?
Trading in USD is only good if you are absolutely certain that you will never be on the US enemies list.
There are a ton of secondary markets that take USD. The real problem is that electronic transfers are dominating the modern finance economy. And with US control over SWIFT exchanges, its easier than ever to track chain-of-custody on a transaction so that you can punish the guy who traded with the guy who traded with the guy who traded with the sanctioned individual.
Because bigger banks can immunize themselves against these sanctions (HSBC, for instance, gets to do all the crimes it wants without serious consequences), this facilitates the consolidation of the financial sector in fewer hands.
But because these financial centers also play a role in amplifying conflicts abroad, they run counter to the leadership of foreign nations - like China and Russia and a big swath of Latin America and Africa.
Its the consolidation and selective enforcement that's really driving this split. Back when you could just black market all your transactions in cash, through a dozen SVB sized banks, it wouldn't have been worth the effort to start your own regional electronic banking network. Putin could keep some overseas cash in a UK bank and nobody would know or care for the same reason nobody seemed to care that Wirecard was run out of a dog trimming shop in the Philippines.
But now there's a real incentive to being at the center of the spider's web.
No One Could Have Predicted The Things We Were Explicitly Warned About
Exactly. Boomer chuds don't give two shits about what happens after they're dead. To the point where 'Who cares, I'll be dead by then' was basically their catchphrase
I have explicitly heard that from a boomer that I know. When I brought up "what about your children and grandchildren?" he didn't seem to give a shit about them either
he didn’t seem to give a shit about them either
This is where the whole "going to heaven and all the homies are there" comes in to do its magic.
Global warming was a thing I would bring up as a kid too (I watched a lot of Captain Planet lol). And my parents way of comforting me about it was. "Oh, don't worry, that won't happen for a hundred years."
Americans will be like "countries we've never even heard of have to trade in our currency" and then give Canadian tourists shit for trying to buy lunch using a USD$20 bill with a rip in it
I mean, its going to suck if you're in the imperial core and measure your wealth in dollars. All that cash flooding back into the core is going to amplify inflation and set off another round of Fed-induced interest rate increases. That'll stall the domestic economy further and push us closer to the recessionary brink.
The most beautiful line going down, as a tear of joy rolls down my cheek. I never dared to hope seeing something like this during my lifetime.
Looks like img src contains the entire image tag? Someone fucked up setting it up.
it's because the emoji is listed twice, I looked in the git and it was fixed but that's not in prod yet
