The US dollar’s hegemony is looking fragile

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    • #414517
      Mr. Mickeys Mom
      Moderator
      • Total Posts: 6,204

      As you peruse this article, it would be interesting to see how many of you are beginning to think,  or actually have already started setting aside part of your budget to safely purchase Bitcoin… 🧐

      Business, Project Syndicate Economists
      Read more at Source: The Guardian

      The modernisation of China’s exchange-rate system could deal the currency a painful blow
      New $5 bills straight from the print works in Washington DC.

      The mighty US dollar continues to reign supreme in global markets. But the greenback’s dominance may well be more fragile than it appears, because expected future changes in China’s exchange-rate regime are likely to trigger a significant shift in the international monetary order.

      For many reasons, the Chinese authorities will probably someday stop pegging the renminbi to a basket of currencies, and shift to a modern inflation-targeting regime under which they allow the exchange rate to fluctuate much more freely, especially against the dollar. When that happens, expect most of Asia to follow China. In due time, the dollar, currently the anchor currency for roughly two-thirds of world GDP, could lose nearly half its weight.

      Considering how much the United States relies on the dollar’s special status – or what then-French Finance Minister Valéry Giscard d’Estaing famously called America’s “exorbitant privilege” – to fund massive public and private borrowing, the impact of such a shift could be significant. Given that the US has been aggressively using deficit financing to combat the economic ravages of COVID-19, the sustainability of its debt might be called into question.

      The long-standing argument for a more flexible Chinese currency is that China is simply too big to let its economy dance to the US Federal Reserve’s tune, even if Chinese capital controls provide some measure of insulation. China’s GDP (measured at international prices) surpassed that of the US back in 2014 and is still growing far faster than the US and Europe, making the case for greater exchange-rate flexibility increasingly compelling.

      Hell, no... I'm not giving up...

    • #414529
      salemcourt
      Participant
      • Total Posts: 2,965

      the bubble may have burst.  Best time maybe today.  I heard predictions that it was going to reach half a million dollars per bitcoin in one year.  Used to be 40 dollars last year.

    • #414600
      lownslow
      Participant
      • Total Posts: 833

      It may be smart to invest in bitcoin, but it is super bad for environment so i will explore other investment avenues. Surely there has to be a better way. I must admit i almost bought a couple coins around 4 years ago when each was going for around $650, that would have made me over $100,000! Wow! I wonder how much I can get selling my false sense of moral superiority? Im all for ending the dollars hegemonic grip on the world even though my lifestyle may suffer, but cant they make a cleaner crypto? I still dont understand the mining, blockchain, etc.

    • #414735
      lownslow
      Participant
      • Total Posts: 833

      Thanks, @Mr. Mickeys Mom I will check out what Max has to say on bitcoin. I just love his show! Not your typical business broadcast

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