Re: Dedollarisation fails before starting, Russia and India halt rupee trade
The problem is that dollar has roots deep inside, so deep that some people and countries can't even imagine. The whole world economy depends on the USD, we measure everything in USD because the internet and modern world connects us worldwide and America with English language is a global leader in economy, military and so on. This is something that no one can stop.
While it's true that dollar has an symbiotic relationship with countries and America enormously benefits via it by importing its own inflation and exporting one's economic growth, the problem is that you can't get rid of it.
As I see lately, countries like Russia and China are increasing their gold reserves but I don't get one thing, America, Germany and western countries have the highest gold reserves, so, what's the point? Still no one can escape from these claws.
While it's true that dollar has an symbiotic relationship with countries and America enormously benefits via it by importing its own inflation and exporting one's economic growth, the problem is that you can't get rid of it.
As I see lately, countries like Russia and China are increasing their gold reserves but I don't get one thing, America, Germany and western countries have the highest gold reserves, so, what's the point? Still no one can escape from these claws.
The U.S. economy has roots all over the world which gives USD its competitive advantage, but it's not worth holding onto a currency that's inflating so quickly even if holding onto USD gives access to the U.S. economy. Recent USD inflation reports suggest there's a downward trend so things seem to be normalizing but IMO the damage is already done. Russia and China increased their gold reserves but, more importantly, they dumped USD from their reserves. It doesn't matter what other countries have in their currency reserves, only that Russia and China can hold onto something more stable.
Here you say "throw away the dollars", and at the same time "use something else"... Don't you think this is a perfect example of the word "dissonance"?
The yuan is stable ? Rupees ? Or maybe, oh sorry, the ruble ?
You'll laugh, but the reality shows that both India and China, manipulating the market, throwing away their "banknotes", but categorically refuse to convert them, the holders of these banknotes, into "no one needs dollars"
I can recall again the story of 2022 when Russia exchanged dollars for yuan, and then literally 3 months later, lost more than 10 billion dollars on this transaction!
But got trillions of yuan with which nothing can be done !
Is China really struggling with the dollar ?