China will divest its dollar holdings

[MisterVeritis]

I heard a passing comment on a TV show this morning. The Chinese Communist Party notified its banks to prepare to divest itself of dollars in the coming week or weeks.

Our biggest export is our dollars. And countries are beginning to divest of their dollar holdings.

I think we are watching the beginning of the end.

[carolina73]

Wow. What are they going to do with all those dollars?

And with this trade imbalance, what are they going to do with all their new dollars?

I smell another investor scam.

The only thing they can do is spend it and send the economy of the US to new highs. They are not going to have massive buyers of dollars unless they destroy the value of their own economy in the process.

[CaveDog]

China and Russia have been working up to this for years. At least since 2014. They've outright said they intend to "liberate" the world from the dollar back around 2017. They've been hoarding gold to at least partially back a competing system, set up a BRICS bank and alternative system to SWIFT. They've been making arrangements for the BRICS countries and others to trade in a new currency. Back in July they officially announced a new global reserve currency. *whoosh*, right over America's heads. Hardly a peep from the media. Sooner or later, it was going to happen. With the Yuan tanking along with lots of currencies, it would be the time for them to do it. If all those dollars start coming home to roost in earnest, today's inflation will look like a fond memory.

[RMNIXON]

It may also be part of a larger move that expects a future hostile relationship between the US and China and we know what that is.............

[MisterVeritis]

It may also be part of a larger move that expects a future hostile relationship between the US and China and we know what that is.............

Right. The Taiwan blockade is coming before we know it.

[Crepitus]

I heard a passing comment on a TV show this morning. The Chinese Communist Party notified its banks to prepare to divest itself of dollars in the coming week or weeks.

Our biggest export is our dollars. And countries are beginning to divest of their dollar holdings.

I think we are watching the beginning of the end.

Highly unlikely. But go ahead and spread the fake news.

[MisterVeritis]

Highly unlikely. But go ahead and spread the fake news.

What is it that you think is unlikely?

[carolina73]

China and Russia have been working up to this for years. At least since 2014. They've outright said they intend to "liberate" the world from the dollar back around 2017. They've been hoarding gold to at least partially back a competing system, set up a BRICS bank and alternative system to SWIFT. They've been making arrangements for the BRICS countries and others to trade in a new currency. Back in July they officially announced a new global reserve currency. *whoosh*, right over America's heads. Hardly a peep from the media. Sooner or later, it was going to happen. With the Yuan tanking along with lots of currencies, it would be the time for them to do it. If all those dollars start coming home to roost in earnest, today's inflation will look like a fond memory.

How do you figure? Our currency is not backed. There is only a little over 2 trillion in USA currency spread around the world. Everything else is in IOUs/Credits or basically crypto.
They won't be wiping out USA wealth. It will damage China exports to the USA and the west and therefore their own economy. So China would have to link the Yuan to the dollar, just like they are now.

This is not a end of the US crisis.
Russia has a 1.8 trillion dollar GDP. It is lower than Brazil's. They are not even a factor in this.

Plus Biden's removal of the USA as a Oil Importer/Exporter takes the USA out of the world's biggest commodities market and that alone has the same effect for other countries.
Swift is not based on dollars. The US does not own Swift. We just have a great deal of leverage. Basically our control is to threaten the other banks in the system.

[CaveDog]

Highly unlikely. But go ahead and spread the fake news.

It’s actually quite likely. They’ve done it before in more limited fashion. The dollar is crushing other currencies these days. The Yuan is no exception. By dumping U.S. Treasuries in mass while buying up Yuans they can bolster their own currency while devaluing the dollar. Even setting aside their desire to challenge dollar dominance, they would do it just to save their own bacon.

[carolina73]

Highly unlikely. But go ahead and spread the fake news.

Sorry, that is just ignorance. The question is only win and IMO the effect is overblown.

You don't seem to care that one of the biggest strengths of the US dollar was in the Oil markets and Biden is destroying that as you watch and do the normal liberal trick of saying "you people are crazy".