Main reason: Milkshake theory is why. Second reason: The Yuan couldn't replace petrodollar - not enough peripheral demand and Yuan is too weak. US could just sell a bunch of Yuan debt and buy Dollar debt causing a Yuan crash.
I proposed this a few days ago and caught flack. Basically the solution to our current fiat fiasco is a return to sound money using petroleum (and other commodities)
Majority of the world's nations have lost all faith in the US dollar as they have seen it's weaponization against Russia in action.
Nations are now actively developing alternatives to the Anglo-American global financial system, especially the BRICS + Saudi Arabia which are around half of the earth's population and a quarter of its GDP.
We are witnessing a bipolar world being formed (Western World vs Russia & the Global South).
The only option the Anglo-American empire will be left with is to start WWIII against a Sino-Russian alliance (and possibly Iran, India, etc) to maintain their hegemony, which hopefully does not come to pass as it would mean a nuclear holocaust.
I agree with this. Wildcards are India and Brazil. There are other unknowns but those two matter. FWIW Trump figured this out and prioritized and succeeded at building relations with them.
Main reason: Milkshake theory is why. Second reason: The Yuan couldn't replace petrodollar - not enough peripheral demand and Yuan is too weak. US could just sell a bunch of Yuan debt and buy Dollar debt causing a Yuan crash.
Yuan fluctuates like bitcoin, why not buy oil in whatever your country’s funny money is to whichever currency is weakest?
I proposed this a few days ago and caught flack. Basically the solution to our current fiat fiasco is a return to sound money using petroleum (and other commodities)
Majority of the world's nations have lost all faith in the US dollar as they have seen it's weaponization against Russia in action.
Nations are now actively developing alternatives to the Anglo-American global financial system, especially the BRICS + Saudi Arabia which are around half of the earth's population and a quarter of its GDP.
We are witnessing a bipolar world being formed (Western World vs Russia & the Global South).
The only option the Anglo-American empire will be left with is to start WWIII against a Sino-Russian alliance (and possibly Iran, India, etc) to maintain their hegemony, which hopefully does not come to pass as it would mean a nuclear holocaust.
https://www.wsj.com/articles/saudi-arabia-considers-accepting-yuan-instead-of-dollars-for-chinese-oil-sales-11647351541
https://www.ft.com/content/a5ee2d6b-693f-475d-80c6-0036c2657ef1
I agree with this. Wildcards are India and Brazil. There are other unknowns but those two matter. FWIW Trump figured this out and prioritized and succeeded at building relations with them.
If the US begins sanctioning India then they will have made their decision for them.
I think their plan is to use inflation to wipe out their debt but to use inflation to cause our debt. It's a wealth transfer mechanism.
I wanted to add that china definitely wants to dedollarize but it will take time and capitulation from America for this to happen