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And so it BEGINS.... China and Russia may be teaming up.... guess WHY.

 
Digital mix guy
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05/06/2021 08:01 AM

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And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
In a rare joint statement in late March, China and Russia doubled down on earlier pledges to upend the global reliance on the U.S. dollar, and the long-standing global financial system that enables the U.S. to strong-arm them.

Will the Sino-Russian strategy succeed? My research suggests “dollar hegemony” is stable for many reasons, primarily due to the United States’ financial centrality and ability to secure investments. The measures announced so far, such as de-dollarization, renminbi digitalization, and alternative financial settlement and messaging systems, are unlikely to kick the dollar to the curb. But the reaction from America’s rivals underscores the limits of the dollar as a tool of deterrence.

If China and Russia devise successful alternatives to the dollar-centered financial system, and if these alternatives gain significant international traction, we would be witnessing a cataclysmic moment in great power rivalry. Currency unipolarity has been a defining feature of the entire postwar era — no currency, not even the euro, has ever come close to rivaling the scale of U.S. dollar use around the world.

An end to America’s dollar primacy and status as a financial hub could mean an end to U.S. macroeconomic perks. And a declining role for the dollar could also undermine the practice of dollar deterrence — the U.S. government’s ability to threaten or deny foreigners access to dollar clearing and, therefore, dollar settlement.

Don’t miss any of TMC’s smart analysis! Sign up here for our newsletter.

This is not the first time countries have railed against dollar primacy. In the 1960s, French Finance Minister Giscard d’Estaing denounced the United States’ “exorbitant privilege” while economist Jacques Rueff decried the “monetary sin of the West.”

However, frustration with the system’s inequity pales in comparison with their ire over the discretion it gives the U.S. to exercise dollar deterrence. Should the U.S. lose this unique form of financial leverage, its ability to benefit from the current international order, and influence countries within it, will be sharply curtailed.

What is dollar deterrence?

U.S. dollar transactions are either cleared through the Federal Reserve or through U.S. financial institutions, which means foreigners depend on the U.S. financial infrastructure when settling dollar transactions. The United States’ ability to turn off the tap on foreign banks’ dollar funding can inflict significant costs on those who evade compliance with U.S. sanctions, given this extraterritorial reach.

Global dollar dependence provides the U.S. government with a powerful lever to police geopolitical behavior without intervening militarily. The U.S. has, for instance, sought to thwart Iran’s bid for regional hegemony, particularly its development of nuclear weapons and missile programs, not only by sanctioning Iran but by imposing secondary financial sanctions on countries dealing with Iran.

[link to www.washingtonpost.com (secure)]

Last Edited by Digital mix guy Spock on 05/06/2021 08:03 AM
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Digital mix guy  (OP)

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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
soitbegins
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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
As Russian Foreign Minister Sergei Lavrov started a two-day trip to China on Monday, days after senior Chinese and US officials clashed openly during a bilateral meeting, a major topic in talks with Chinese State Councilor and Foreign Minister Wang Yi is how to counter US sanctions -- not just on China and Russia but a growing list of other countries -- using its dollar hegemony, analysts said.

As the new US administration under President Joe Biden signals its intention to continue his predecessor Donald Trump's confrontational approach by wielding sticks, many countries around the world are faced with the risk of a weaponized, dollar-centered global payment system and a growing urgency to find alternatives.

While ending the greenback's dominance remains an almost impossible mission at the moment, there are ways for countries to find ways to at least avert certain sanctions and slowly chip away at the dollar's dominance, analysts added, noting that the trend of de-dollarization in certain areas is on the rise.

[link to www.globaltimes.cn (secure)]
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05/06/2021 08:06 AM

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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
China and Russia been playing a long game. That while the US federal reserve prints $trillions in order for market gains to reach fresh highs.

This will bring pain to US as their empire collapses, and China the new Empire takes ownership of the globe.
"I have no special talent, I am only passionately curious."
-Albert Einstein
Anonymous Coward
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05/06/2021 08:07 AM
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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
You just figured this one out OP? of course they are.
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05/06/2021 08:09 AM
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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
I was always taught that Boy Meets Girl
Fall in love get married and forget the world
The nine months later the sweet babies on its way
Kiss them on the cheek in life's okay



[imgur] [link to imgur.com (secure)]
Digital mix guy  (OP)

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05/06/2021 09:45 AM

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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
You just figured this one out OP? of course they are.
 Quoting: ALL IS ONE IS ALL


ok, fair question. however, look at this!!

Only recently in this latter context, for example, Leonid Mikhelson, chief executive officer of Russian oil major, Novatek, said that future sales to China denominated in renminbi are under consideration and that U.S. sanctions accelerate the process of Russia trying to switch away from U.S. dollar-centric oil and gas trading and the damage from potential sanctions that go with it.

“This has been discussed for a while with Russia’s largest trading partners such as India and China, and even Arab countries are starting to think about it... If they do create difficulties for our Russian banks then all we have to do is replace dollars,” he said. “The trade war between the U.S. and China will only accelerate the process,” he added.

Moreover, under the auspices of former U.S. President, Donald Trump, when a sea-change in foreign policy occurred that meant that U.S. dollar-centric sanctions changed from being merely an instrument of policy against countries to the policy itself, momentum has built in many key petro-states for a change away from dependence on the U.S. dollar, said Emadi.

“For a long time there was no real alternative for big oil producers such as Iran, Venezuela, and even Russia that were on one of the U.S.’s sanctions lists to sell their oil in any other currency than the U.S. dollar but increasingly there will be other options, with China leading this strategic shift,” he told OilPrice.com. “The U.S.’s view is that its dollar is the only game in town but to use its currency to punish other countries is highly likely to work in favour of the decisive marginalisation of the power of the U.S. dollar, and therefore also of the U.S., within the next decade,” he concluded.


[link to oilprice.com (secure)]


siren2 siren2 siren2 siren2

Last Edited by Digital mix guy Spock on 05/06/2021 09:58 AM
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Digital mix guy  (OP)

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05/06/2021 09:46 AM

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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
Saudi Arabia reportedly owes billions of dollars to some of the largest construction companies in the world in unpaid bills for work completed on the Riyadh metro project, which is key to Crown Prince Mohammed bin Salman's plan to modernise the Kingdom.

Several global firms, including the US-based Bechtel Corp, have said that they are pursuing billions of dollars in unpaid bills, according to five people familiar with the matter cited in Al Jazeera.

Bechtel is reportedly owed around $1 billion for the transport system according to four of the people. Companies working on the project — which also involves French, Spanish and Italian firms — are also said to be pursuing several billions of dollars in unpaid bills in total, two of the people said, with Bechtel owed the most.

The Royal Commission for Riyadh City, which oversees the project, said in a statement that payments to contractors "have been made in a timely manner" and "the aforementioned claims are being assessed as per a dispute resolution process stipulated within the contract."

Officials in Riyadh are also reported saying that they are committed to paying on time and have taken significant steps to resolving the problem.



[link to www.middleeastmonitor.com (secure)]
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muckuh

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05/06/2021 09:47 AM
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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
NEW MOON ON THE 11TH!
muckuh
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05/06/2021 09:51 AM
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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
China and Russia always team up... Old news.
This is my GLP

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05/06/2021 09:54 AM
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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
You just figured this one out OP? of course they are.
 Quoting: ALL IS ONE IS ALL


At least OP doesn't think they are the " good guys "
All praise and glory to God ~ He is always in control , no matter what happens. ~

Jesus is LORD AND SAVIOR!

Zephaniah 2:3 -

Seek the Lord, all you meek of the earth,
Who have upheld His justice.
Seek righteousness, seek humility.
It may be that you will be hidden
In the day of the Lord’s anger.
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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
Good. The hell that will follow will be exactly what we have been waiting for.
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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
MAY BE

Russia and China already are a military allies

they know who's the Whor5 of Babylon on planet Earth and they'll take the Dollar down making your lives miserable like in the Weimar Republic, because of it we'll have WW3
Digital mix guy  (OP)

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05/06/2021 09:56 AM

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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
You just figured this one out OP? of course they are.
 Quoting: ALL IS ONE IS ALL


At least OP doesn't think they are the " good guys "
 Quoting: This is my GLP


Roger that, friend!! heck yeah! USA all the way!!

flag waver

yessir

usa

navy
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Truth be known
Saul Good

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05/06/2021 09:58 AM

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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
In a rare joint statement in late March, China and Russia doubled down on earlier pledges to upend the global reliance on the U.S. dollar, and the long-standing global financial system that enables the U.S. to strong-arm them.

Will the Sino-Russian strategy succeed? My research suggests “dollar hegemony” is stable for many reasons, primarily due to the United States’ financial centrality and ability to secure investments. The measures announced so far, such as de-dollarization, renminbi digitalization, and alternative financial settlement and messaging systems, are unlikely to kick the dollar to the curb. But the reaction from America’s rivals underscores the limits of the dollar as a tool of deterrence.

If China and Russia devise successful alternatives to the dollar-centered financial system, and if these alternatives gain significant international traction, we would be witnessing a cataclysmic moment in great power rivalry. Currency unipolarity has been a defining feature of the entire postwar era — no currency, not even the euro, has ever come close to rivaling the scale of U.S. dollar use around the world.

An end to America’s dollar primacy and status as a financial hub could mean an end to U.S. macroeconomic perks. And a declining role for the dollar could also undermine the practice of dollar deterrence — the U.S. government’s ability to threaten or deny foreigners access to dollar clearing and, therefore, dollar settlement.

Don’t miss any of TMC’s smart analysis! Sign up here for our newsletter.

This is not the first time countries have railed against dollar primacy. In the 1960s, French Finance Minister Giscard d’Estaing denounced the United States’ “exorbitant privilege” while economist Jacques Rueff decried the “monetary sin of the West.”

However, frustration with the system’s inequity pales in comparison with their ire over the discretion it gives the U.S. to exercise dollar deterrence. Should the U.S. lose this unique form of financial leverage, its ability to benefit from the current international order, and influence countries within it, will be sharply curtailed.

What is dollar deterrence?

U.S. dollar transactions are either cleared through the Federal Reserve or through U.S. financial institutions, which means foreigners depend on the U.S. financial infrastructure when settling dollar transactions. The United States’ ability to turn off the tap on foreign banks’ dollar funding can inflict significant costs on those who evade compliance with U.S. sanctions, given this extraterritorial reach.

Global dollar dependence provides the U.S. government with a powerful lever to police geopolitical behavior without intervening militarily. The U.S. has, for instance, sought to thwart Iran’s bid for regional hegemony, particularly its development of nuclear weapons and missile programs, not only by sanctioning Iran but by imposing secondary financial sanctions on countries dealing with Iran.

[link to www.washingtonpost.com (secure)]
 Quoting: Digital mix guy

So now it makes since why we hand out billions of dollars to countries we hate. If we provide free samples, and secure transportation, we hook them with the dollar and it becomes the world currency.
There is no nobility in being superior to your fellow man. True nobility lies in being superior to your former self. ~ Ernest Hemingway
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05/06/2021 09:59 AM
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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
Any advice besides rice, beans, bullets and bandaids?
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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
Any advice besides rice, beans, bullets and bandaids?
 Quoting: Anonymous Coward 79113477


G-d and prayer top my list.
To know where your heart is, look where your mind goes when it wanders.

A rock in bad hands killed Abel. A rock in good hands killed Goliath. It isn't about the rock.

A true warrior fights not because he hates the one in front of him, but because he loves those behind him.

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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
:eewy:
Digital mix guy  (OP)

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05/06/2021 10:02 AM

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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
In a rare joint statement in late March, China and Russia doubled down on earlier pledges to upend the global reliance on the U.S. dollar, and the long-standing global financial system that enables the U.S. to strong-arm them.

Will the Sino-Russian strategy succeed? My research suggests “dollar hegemony” is stable for many reasons, primarily due to the United States’ financial centrality and ability to secure investments. The measures announced so far, such as de-dollarization, renminbi digitalization, and alternative financial settlement and messaging systems, are unlikely to kick the dollar to the curb. But the reaction from America’s rivals underscores the limits of the dollar as a tool of deterrence.

If China and Russia devise successful alternatives to the dollar-centered financial system, and if these alternatives gain significant international traction, we would be witnessing a cataclysmic moment in great power rivalry. Currency unipolarity has been a defining feature of the entire postwar era — no currency, not even the euro, has ever come close to rivaling the scale of U.S. dollar use around the world.

An end to America’s dollar primacy and status as a financial hub could mean an end to U.S. macroeconomic perks. And a declining role for the dollar could also undermine the practice of dollar deterrence — the U.S. government’s ability to threaten or deny foreigners access to dollar clearing and, therefore, dollar settlement.

Don’t miss any of TMC’s smart analysis! Sign up here for our newsletter.

This is not the first time countries have railed against dollar primacy. In the 1960s, French Finance Minister Giscard d’Estaing denounced the United States’ “exorbitant privilege” while economist Jacques Rueff decried the “monetary sin of the West.”

However, frustration with the system’s inequity pales in comparison with their ire over the discretion it gives the U.S. to exercise dollar deterrence. Should the U.S. lose this unique form of financial leverage, its ability to benefit from the current international order, and influence countries within it, will be sharply curtailed.

What is dollar deterrence?

U.S. dollar transactions are either cleared through the Federal Reserve or through U.S. financial institutions, which means foreigners depend on the U.S. financial infrastructure when settling dollar transactions. The United States’ ability to turn off the tap on foreign banks’ dollar funding can inflict significant costs on those who evade compliance with U.S. sanctions, given this extraterritorial reach.

Global dollar dependence provides the U.S. government with a powerful lever to police geopolitical behavior without intervening militarily. The U.S. has, for instance, sought to thwart Iran’s bid for regional hegemony, particularly its development of nuclear weapons and missile programs, not only by sanctioning Iran but by imposing secondary financial sanctions on countries dealing with Iran.

[link to www.washingtonpost.com (secure)]
 Quoting: Digital mix guy

So now it makes since why we hand out billions of dollars to countries we hate. If we provide free samples, and secure transportation, we hook them with the dollar and it becomes the world currency.
 Quoting: Truth be known


this1

hesright
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Emma3010

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05/06/2021 10:05 AM
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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
Injudicious use of sanctions as a means to force other nations to do what the US dictates has caused those targeted nations to make plans to exit the dollar system.



[link to www.zerohedge.com (secure)]


Read the other day that Russia's trade using dollars has dropped below the 50% mark. That shows that their effort to get off the USD system is working.


Not sure what happens when the nations from which we buy 'stuff' stop taking dollars and instead require the US to buy using some other currency...
VinoSom

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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
Good!!! Let the entire global banking system collapse. The US dollar is no longer worth the paper it is no longer printed on. The ponzi scheme needs to collapse. We need to go back to the gold and silver standard, nationalize the fed reserve, and deatroy the global banking cabal.
Digital mix guy  (OP)

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05/06/2021 10:10 AM

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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
The Fed faces a delicate balancing act, ensuring that tapering at a time of massive U.S. government borrowing does not boost Treasury yields too much.

Pictet Wealth senior economist Thomas Costerg expects tapering to start by early 2022 and proceed at a monthly pace of $10 billion. That process would last about a year - "enough to keep expectations for the first rate hike well in the distance", he added.


[link to finance.yahoo.com (secure)]
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Anonymous Coward
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05/06/2021 10:11 AM
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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
Good!!! Let the entire global banking system collapse. The US dollar is no longer worth the paper it is no longer printed on. The ponzi scheme needs to collapse. We need to go back to the gold and silver standard, nationalize the fed reserve, and deatroy the global banking cabal.
 Quoting: VinoSom


Words of wisdom, if every American and citizen of the Earth (i'm no Globalist) would preach and fight for the same thing

Planet would be a lot better place to live on

clappa
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05/06/2021 10:12 AM
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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
Good!!! Let the entire global banking system collapse. The US dollar is no longer worth the paper it is no longer printed on.
 Quoting: VinoSom


I admit I'm so disgusted with whats's going on - from Biden to Silicon Valley, from the MLB to Coca-cola, etc - that I feel the same way you do.

Today's America has become like your dear, sweet aunt who you just discovered has stolen money from your mother, given cocaine to your cousins, had sex with you 10-year-old son and is a hooker in her spare time.
Digital mix guy  (OP)

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05/06/2021 10:14 AM

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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
On the other hand.....


US dollar's role as top reserve currency safe even as global share hits new lows



The proportion of U.S. dollars held worldwide by government central banks and other financial institutions as foreign exchange reserves fell to its lowest level in more than two decades during the fourth quarter of 2020, a drop largely blamed on U.S. monetary policy changes in response to the COVID-19 pandemic that weakened the greenback throughout the year.

But foreign exchange analysts see no possibility of the dollar losing the title as the world's dominant reserve currency, which it has held for generations.

"There is no immediate threat of the [U.S. dollar] losing its status as the world's reserve currency given the lack of liquid alternatives," Lee Hardman, a currency analyst with MUFG, said in an interview.

As the world's major reserve currency, more central banks and major financial institutions hold the dollar for use in international transactions and investments than any other currency. At the end of the fourth quarter of 2020, about 59% of global foreign exchange reserves were dollars, totaling more than $7 trillion, the International Monetary Fund reported March 31.

It was the first time the dollar's share of the world's currency reserves fell below 60% since 1997. The dollar's value in 1998 rose to its highest level in more than a decade, reflecting strong demand for the currency in the aftermath of a financial crisis in several East Asian countries, according to the IMF.

By comparison, the euro accounted for 21.2% of global reserves in the fourth quarter of 2020 while the Japanese yen accounted for just over 6%, according to the IMF.




[link to www.spglobal.com (secure)]

Last Edited by Digital mix guy Spock on 05/06/2021 10:16 AM
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Agent 99

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05/06/2021 10:16 AM

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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
Saudi Arabia reportedly owes billions of dollars to some of the largest construction companies in the world in unpaid bills for work completed on the Riyadh metro project, which is key to Crown Prince Mohammed bin Salman's plan to modernise the Kingdom.

Several global firms, including the US-based Bechtel Corp, have said that they are pursuing billions of dollars in unpaid bills, according to five people familiar with the matter cited in Al Jazeera.

Bechtel is reportedly owed around $1 billion for the transport system according to four of the people. Companies working on the project — which also involves French, Spanish and Italian firms — are also said to be pursuing several billions of dollars in unpaid bills in total, two of the people said, with Bechtel owed the most.

The Royal Commission for Riyadh City, which oversees the project, said in a statement that payments to contractors "have been made in a timely manner" and "the aforementioned claims are being assessed as per a dispute resolution process stipulated within the contract."

Officials in Riyadh are also reported saying that they are committed to paying on time and have taken significant steps to resolving the problem.

[link to www.middleeastmonitor.com (secure)]
 Quoting: Digital mix guy


MbS has no intention of paying up.
Agent 99

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05/06/2021 10:17 AM

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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
Gold UP 25.
Anonymous Coward
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05/06/2021 10:17 AM
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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
so of course USA is the World's policemen and dominant force

Permit me to issue and control the money of a nation, and I care not who makes its laws! Mayer Amschel Roth schild

the World is waking up to this fact and destroying America the same way the ROTH CHILD FEDERAL RESERVE destroyed it until now
Digital mix guy  (OP)

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05/06/2021 10:18 AM

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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
And, of course....


The International Monetary Fund looks set to issue $650 billion in currency aid to countries hit hard by the coronavirus pandemic, but those with unsustainable debt burdens may struggle to reap the rewards.

Treasury Secretary Janet Yellen indicated last week that the U.S. is on board with the allocation of Special Drawing Rights, which are reserve assets that countries can use to supplement their foreign exchange assets, such as gold and U.S. dollars.

But in relative terms, the poorest and most heavily indebted emerging economies will receive the greatest boost in gross international reserves as a result of this SDR allocation, according to Capital Economics chief emerging markets economist William Jackson.

“A $650bn allocation would more than double Zambia’s gross international reserves and it would raise reserves by more than 10% in Argentina, Ethiopia, Ecuador, Kenya, Ghana and Sri Lanka, all of whom face very high borrowing costs on global capital markets,” Jackson said in a research note Wednesday. By contrast, he highlighted, China’s gross international reserves would rise by just 1%.

Jackson noted that the increase in reserves would free up central banks to offer foreign currency liquidity to citizens, allowing for a rise in imports and helping to finance external debt repayments. This would pave the way for a stronger resurgence in demand and offer a “cushion” as external financing conditions are tightened, according to Jackson.

No solutions for unsustainable debt burdens
Smaller frontier markets such as Kenya and Ghana that still endure particularly high foreign borrowing costs would experience welcome relief, Jackson said, but he argued that member countries would generally have benefited more had the IMF taken this action at the height of financial market distress last year.



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laughing

Last Edited by Digital mix guy Spock on 05/06/2021 10:20 AM
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Anonymous Coward
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05/06/2021 10:21 AM
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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
The Fed faces a delicate balancing act, ensuring that tapering at a time of massive U.S. government borrowing does not boost Treasury yields too much.

Pictet Wealth senior economist Thomas Costerg expects tapering to start by early 2022 and proceed at a monthly pace of $10 billion. That process would last about a year - "enough to keep expectations for the first rate hike well in the distance", he added.


[link to finance.yahoo.com (secure)]
 Quoting: Digital mix guy


With possible interest rate rise, is it time to buy a good Canadian bond index?
Real return or no?
Anonymous Coward
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05/06/2021 10:21 AM
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Re: And so it BEGINS.... China and Russia may be teaming up.... guess WHY.
And, of course....


The International Monetary Fund looks set to issue $650 billion in currency aid to countries hit hard by the coronavirus pandemic, but those with unsustainable debt burdens may struggle to reap the rewards.

Treasury Secretary Janet Yellen indicated last week that the U.S. is on board with the allocation of Special Drawing Rights, which are reserve assets that countries can use to supplement their foreign exchange assets, such as gold and U.S. dollars.


:laughing:
 Quoting: Digital mix guy


the Federal Reserve prints almost 200 billion dollars monthly out of thin air and supplying the system with these fresh numbers on a digital screen, earning money from the creation of it and the interest that goes with it

causing massive global inflation since World's reserve currency is the dollar

what FED does, hits the whole World with same consequences

so USA should be nuked for it





GLP