having a current account deficit isn’t inherently bad. with the way trade works some countries must have surplus and others deficit (it must all add up to zero), but U.S. having control over the dollar gives it special powers to basically not have to worry about trade balance since it can create dollars as needed and as U.S. is the ‘home’ of capitalism, investors consider it a ‘safe haven’.
And that’s precisely what’s under threat with the whole dedollarization business that’s accelerating.
What dedollarization business?
The IMF has accepted the first debt payment in Yuan. There have been plenty of currency swaps between BRICS countries and others to help them trade without the US Dollar. The Dollar is losing its seat as the currency of international trade. Thus the US can no longer be the imperialist hegemon.
BRICS, and possible shake ups in the petrodollar system.
Dedollarization refers to countries reducing reliance on the U.S. dollar as a reserve currency, medium of exchange or as a unit of account
- Wikipedia
So what you’re saying is that, if the world sanctions the USA, it’s gonna be a sad day for the Yankees? Sounds like an interesting proposition, maybe we could find out about some genocide happening in Turtle Island and use it as the basis.
Western Europe, Australia and Canada are just Yankee sluts. if u get those to leave the dollar then u have successfully beheaded the capitalistic cyclops
Honestly, I think it’s more likely for every non-NATO country to sanction the USA than any of those countries to drop support for them (at least without a proper revolution in them). Western Europe in particular would be really hurt by not having the USA’s army funding numbers to scare away independence movements in their colonies, and afaik the entire Australian geopolitical stance seems to be the word “Sinophobia” in big bold letters.
The Chinese economy would suffer immensely and immediately enter a horrific depression. It probably wouldn’t collapse, but the financial markets would all but implode. All those net Chinese exports are going to the US, and the countries economies are intertwined.
Plus China has a lot of capital placed into buying American debt. If they were to lose that it would be a devastating and almost irrecoverable blow to the Chinese economy.
Its a dangerous game of chicken, that’s why neither China or the US have gotten aggressive with each other. They depend on the other.
This must change if the US is to be isolated.
Hopefully divestment from the US is part of the plan for socialism by 2050.
I hope so, it’s the only path forward. But keeping and even increasing the investments are to profitable, so I’m not very confident that China will change course if things continue as they are.
We will have to see.
Lol if the world stops using dollars, they gone. Fucking parasites.
Now that the process started, I really don’t see how it can be reversed. US doesn’t actually produce anything people need.
Only through war.
A war with Russia or China means a nuclear holocaust with no winners, so that’s not really an option either. War was the solution when US was bullying small countries, but now it’s taking on peer competitors.
When you’re a debtor nation that can get away with not paying back debt.
that’s a graphic representation of china subaltern role and american imperialism. any other interpretation is wrong. ofc, Hegel’s Master-Slave Dialectic might happen, but it’s not clear it will happen.
Hmm yes I will decouple my economy from China
What it’s just an ordinary bar cha- OH MY GOODNESS! AMERICA!
