Fuck everything electoral, this is real shit.Edit: I have informed by my sources that this is, in fact, not "real shit."
But the Iranian government was elected in bourgeois Parliament, checkmate gommie
no they were sent and appointed by Allah Himself praise Him :nasrallah:
No it really isn't. This is at most Iran just trying to skirt US sanctions that result in Iranian oil having a deflated price on global markets.
US dollar's status as foreign exchange reserve and trade medium is highly unlikely to be dethroned in the mid-term (through the next decade or so), and I say this as perhaps the biggest Chinaboo on this website. China doesn't want to make Yuan the new global reserve because it means Yuan will instead become free-floating and more susceptible to trade moves from speculators.
60% of all foreign reserves are in US dollar. https://data.imf.org/?sk=E6A5F467-C14B-4AA8-9F6D-5A09EC4E62A4
My understanding is that’s why China’s going for that separate, eYuan, instead of outright making its own Yuan free floating. Gives more space to experiment without fucking up their internal economy.
China already is a part of IMF special drawing rights, there's not really anything major they gain over the course of at least a 20 year time frame from trying to displace the US as the reserve currency. All it would do is make their exports far more expensive and that would absolutely destroy their economic growth.
SDRs are only slightly more of a currency than the Bancor.
What matters is real use of alternatives to the USD, so the USD no longer has the freedom to just print money in a weird form of modern seigniorage, and so the USD can’t effectively enforce sanctions via control of the global financial system.
This is baby steps, but it is a step forward. If it comes close to messing with China’s internal currency needs, it can always switch global trade on the eYuan track.
If you're a part of SDR it's far easier to get away with endlessly printing money without fear of hyper inflation, it's not about SDRs being tradable. China does the same thing re money printer that the US does, if anything they use it more aggressively. Even if China competes more aggressively with the dollar as a reserve currency, the US will retain it's ability to print money aggressively when needed just as any of the countries with SDR status can, usually it's a coordinated effort across central banks.
The strength the US has to enforce sanctions isnt directly tied to reserve currency status as much as military status and being the worlds largest consumer market, although the reserve currency status does mostly help pay for all this enforcement.
And the big point is that an export oriented country is negatively impacted by being the global reserve currency. China has such a large population that I don't really see a world where they benefit from their exports being more expensive in favor of engaging in imperialist mass ownership of foreign assets.
Well shit, you're not wrong.
Where can I subscribe to QuillQuote's stock tips and market analysis 😄?
Surest way to get the business community behind an invasion is to force them into dropping the dollar. Long con shit, here.
Nah. This is the inevitable consequence of the BRI. Iran's already sanctioned to the hilt, so the only reason they're holding dollars is to do business with other dollar-holding nations that aren't afraid of being heavily sanctioned by the US in turn.
As business between Iran and China ramps up (inevitable, given that Iran has lots of mineral resources that Chinese manufacturers crave), Iran is going to have to do business in China's preferred currency. This is just a precursor to a longer term arrangement that the US has been forcing on Iran since '79.
Libya and Iraq got knocked over because they were weak, low-population nations with a relatively high domestic opposition. Iran doesn't have that problem (or we'd have invaded already) and it doesn't do enough USD denominated business for Americans to seriously care about the change over.
That's absolutely moronic to suggest, the coronavirus pandemic has resulted in a doubled down effort all over the world into the dollar as a reserve currency. Namely this happened because the US had a smaller stimulus program than other nations.
The US dollar is far stronger than the nation it comes from, I know it comes off as totally insane, but the data speaks for itself in this case. Confidence in the dollar is incredibly high, where by contrast post 2008 this wasn't the case.
Lol, I mean in terms of hard metrics, the US is far worse now than it was in 2008.
Unless China decides to self destruct their economy in favor or short term returns like Japan did then no we won't lol.
You think RMB is the replacement though? I can't see EUR being a huge improvement.
China wants to make the RMB the reserve currency and I wouldn't be surprised if they pull it off
I thought they wanted special drawing rights at the IMF or world bank but that was in 2009 or something.
China is already a part of drawing rights and has been for a while now. China has no real incentive to change the existing structure of the reserve currency system.
This action is entirely about Iran and how fucked they are from US sanctions re their own currency. They believe they can skirt this situation by indirectly being tied back to the dollar through the RMB.
Plans in China are long term and in 2009 I think they were still devaluing their currency.
imagine when the worst crime people accused china of was currency manipulation ah what a time
I wasn't a commie back then but I remember thinking "it sounds like they're just smart" lol
i wasn’t either but i don’t remember china as big a boogie man to the extreme it is today
america: CHINA GENOCIES 1 TRILLION PEOPLE DAILY WE DEMAND EVERYONE EMBARGO THEM NOW
i don't understand any of this economic shit, but when i see something like this, i'm like, ok, do what you want.
Sanctions are possible by the US via their dollars This sidesteps down.
Also, gas is bought and sold in dollars, the PETRODOLLAR.
Fuck the PETRODOLLAR
not sure how this could become a shitshow
but with roid-Trump and America's unfounded hatred for Iran, I know it will be
Completely unscientific poll:
92.5% of Americans think Iran is "evil", and "the bad guy" and "hates our freedom".
3.8% of Americans know that America deposed the democratically elected Mossadegh because he wanted to nationalize the oil. The Americans (and Brits, tbf) installed the Shah and kept him in power - a horrifically brutal dictator who's cruelty led directly to the people of Iran supporting revolution, even if it was led by religious extremists.
Not at all, oil is still tied to the dollar, Iranian oil is not being traded on US dollar markets already to the same extent because of sanctions against them. Them tying themselves to the RMB kind of allows them to skirt the sanctions.
Someone explain the ramifications for this, and exactly how cool it is please
It’s not totally meaningless. It’s the first step to nations using a non-USD currency for trading.
If a critical mass of countries do so, then the US loses its ability to sanction countries through its control of the global financial system, which is what spurred Iran to do this in the first place.
The USA position as reserve currency is what allows it to create/spend a ridiculous amount of money into existence and survive crises. The rest of the world just has to eat it. But as alternate systems emerge, this exorbitant privilege lessens.
It's totally meaningless, you can read my other comments and I can answer question.
The central bank of Iran has also established a blockchain currency research department to develop a digital currency anchored to its own currency.
and they're using their own cryptocurrency. 2020 is wild lol
