U.S. Dollar decline: Beginning of the end of the world reserve currency and weapon of mass starvation?

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    Recent history shows how the dollar is protected:
    Dominique Strauss Kahn was proposing an IMF currency that is a bundle on international currencies (Yuan, Eur, Yen, CAD... + of course the USD) and was leading french polls for president
    Qaddafi was proposing gold standard for any trade with Africa and started getting traction
    Saddam Petrol for food

    I think this is not taken lightly and i would not bet against the USA to be honest. All the trade war and uyghurs and spying is getting front pages now suddenly...

    very conspiracy theory sounding...i noticed but who knows :lol:
    You forgot to mention Charles De Gaulle R.I.P.

    He was the first one to notice and resent the Dollar hegemony.

    CIA used the Socialist Student 7irak to overthrow him.

    Ironically, those same useful-idiot students became the first ones to complain as soon as they went to work about paying too much income tax after De Gaulle was gone and they got what they wanted...

    God rest his soul General De Gaulle…
     
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    US-German relations are beyond repair as result of decades-long clash of views & ideas. Troop pullout is only a symptom
    Scott Ritter
    Scott Ritter
    is a former US Marine Corps intelligence officer. He served in the Soviet Union as an inspector implementing the INF Treaty, in General Schwarzkopf’s staff during the Gulf War, and from 1991-1998 as a UN weapons inspector. Follow him on Twitter @RealScottRitter
    31 Jul, 2020
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    FILE PHOTO US military personnel at the Port of Bremerhaven, Germany on February 21, 2020 © AFP / Patrik Stollarz

    While the Trump administration sells the decision to withdraw US troops from Germany as a strengthening of NATO force alignment, the reality is it’s merely the latest manifestation of a relationship on the decline for decades.
    The announcement by Secretary of Defense Mike Esper that the US has finalized plans for the withdrawal of some 12,000 troops from Germany came as a surprise to no one. This decision, minus the details concerning implementation, was originally announced back on June 30. At that time, President Donald Trump linked it to the failure of Germany to meet its obligation regarding meeting NATO goals of defense spending matching 2% GDP (German levels for 2019 were around 1.4%). However, in announcing that, of the 36,000 forces permanently stationed in Germany, 24,000 would remain while 11,900 will deploy elsewhere or return home, Esper did not mention Germany’s budgetary arrears, instead linking the decision to new US defense priorities driven by the need for better deterrence of Russia and China.
    National security experts on both sides of the Atlantic will be debating the genesis of the US troop withdrawal for some time to come, trying to assign weight to the competing justifications offered by Trump and Esper. The reality, however, is that this decision was a long time in coming, with its roots not so founded in any personal animus on the part of President Trump or strategic force re-posturing by the US. The current crisis is derived from a larger US-German dysfunction that has been in place for decades, driven by inherently incompatible world visions and value systems, and the inevitable clash between American exceptionalism and German ideals based on the principle of European sovereignty.
    The notion that US-German relations during the pre-Trump era were exclusively cordial and free of controversy or recrimination is belied by the facts. The Cold War was largely defined by the division of Germany into East and West, and the resulting debate about German reunification between the US and the Soviet Union. As a battleground state, West Germany struggled with the danger of US ambivalence, as witnessed during the Berlin crises of the late 1950s and early 1960s, plus US overreaction in the form of war plans involving the use of nuclear weapons on German soil. While West Germany was a staunch NATO ally during this time, its insistence on an effective forward defense of its territory created friction amongst its cohorts, who believed that a defense in depth, which traded German territory for time needed to reinforce, represented the best way of defeating a Soviet-led invasion of the West.
    The Ostpolitik policies of Chancellor Willy Brandt likewise frustrated US and NATO leaders, who saw West Germany’s efforts at détente with the Soviet Union, East Germany and other East Bloc European nations as a symptom of greater German independence from the dictates of NATO and the West. West Germany was ground zero for the anti-nuclear movement that swept Europe in the early 1980s following the US’ effort to deploy intermediate-range nuclear missiles onto European soil. This came in response to the Soviet deployment of SS-20 missiles, which triggered the collapse of the government of Chancellor Helmut Schmidt due to a vote of no confidence.
    While the signing of the Intermediate Nuclear Forces (INF) treaty in 1987, and the fall of the Berlin Wall and subsequent German reunification in 1989, helped repair US-West German relations, the US involvement in the Gulf War in 1990-91 did not receive German support. While Germany rallied behind the US in the aftermath of the 9/11 terrorist attacks, this support did not extend to the US’ decision to invade Iraq in 2003; German recalcitrance prompted then-Secretary of State Donald Rumsfeld to belittle Germany as part of “Old Europe.” Gerhard Schroeder, who served as German chancellor from 1998-2005, worked towards closer relations with Russia, especially in the field of energy – an action that raised the hackles of the US government.
    When President Barack Obama took office in 2009, many Germans believed that he would usher in an era of improved relations that coalesced around common ideals and values, only to be disappointed by the reality that the problems souring US-German relations were larger than one man. Successive spy scandals in 2013 and 2014 involving eavesdropping by the US on Chancellor Angela Merkel’s cellphone, and the recruitment by the CIA of senior German officials, only confirmed to many Germans the reality that the US did not view their nation as a friend, but rather a potential adversary. The US’ use of military bases in Germany to conduct armed drone attacks against targets in the Middle East likewise drew the ire of many Germans, who believed their sovereignty was violated by such actions.
    Seen in this light, the deterioration of US-German relations under President Trump is not a new phenomenon, but rather a continuation of a decades-long slide which finds the two nations at odds over critical policy issues involving international peace and security, European independence, and relations with Russia. While Germany continues to believe that its membership in the NATO alliance is essential for European security, this stance is strained by what it views as US unilateralism and exceptionalism at the expense of European values and interests. Given the current trajectory of relations, one has to wonder how long NATO can survive under such conditions.
    The decision by Secretary Esper to begin the process of withdrawing US forces from Germany is not the last word on the subject. The task of moving major command elements, combat units, and combat service support units – along with their respective civilian and dependent infrastructure – is a daunting one that will take weeks, if not months, to implement. The reality is that if Trump fails to secure reelection in November 2020, a Biden administration would be able to reverse much, if not all, of the planned withdrawal. In doing so, however, the new leadership would be confronted with the reality that the damage to US-German relations is beyond repair. They would also realise any actions they might take to appease Germany would run afoul not only of Congress, which opposes the German-Russian Nord Stream 2 pipeline project, but also the former eastern-bloc nations of NATO, such as Poland, the Baltics, Romania and Bulgaria, which view the force restructuring ordered by Secretary Esper as essential to their individual national security interests – the rest of the NATO alliance be damned.
    Trump’s actions in ordering the withdrawal of US troops from Germany are more the byproduct of a dysfunctional US-German relationship that has been devolving for decades than they are of any grand NATO realignment against Russia or personal animosity between Trump and Angela Merkel. The worsening relationship between the two countries is tied to a clash between American exceptionalism and German notions of European sovereignty, which no US or German leader can paper over with gestures and speeches. It is a manifestation of the geopolitical disharmony that has existed in Europe and the world in the aftermath of the dissolution of the Soviet Union in 1991, and the US’ decision to fill the resulting vacuum as the unilateral global superpower.
    The gradual degradation of American military, diplomatic and economic power in the three decades that followed this event is the principal driving force behind the US-German split, and with it the decline in the relevance and authority of the NATO trans-Atlantic alliance. No amount of reshuffling of American military assets can undo this reality.
     
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    ‘The world is going back to a GOLD STANDARD as the US dollar is about to collapse’ – Peter Schiff
    22 Jul, 2020
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    As the world grapples with Covid-19, precious metals’ prices are pushing higher. Massive moves in gold and silver are coming, according to veteran stockbroker Peter Schiff.
    He says silver may hit $50 per ounce. The rally will be short-lived, however, with Schiff describing the metal as “the new bitcoin.”
    The rise in gold and silver price is “about to explode” and this is just the beginning of a much bigger move, according to Schiff.
    “We’re barely getting started,” the CEO of Euro Pacific said in his podcast. He explained that is also coinciding with what’s happening to the US dollar, because gold is the greenback’s “principle competitor” when it comes to reserve assets.

    “The US dollar is about to collapse and when it does, gold is going to take its place. The bottom can drop out of the dollar any day, and gold could go through the roof any day. So, this is a real race and you have to get out of the dollar before it’s too late,” Schiff said.
    The yellow metal “will resume its role at the center of the monetary system,” and “the world is going back to a gold standard whether the Federal Reserve wants it or not.”
    And that could happen as soon as this year or the next, according to Schiff.
     
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    Dollar crash will topple the entire US ‘house of cards’ economy by year end – Peter Schiff
    31 Jul, 2020
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    © Getty Images /

    No one seems to be worried about the falling dollar, veteran stockbroker Peter Schiff writes on Twitter, as the US currency continues to slide versus major rivals amid gold and silver record growth.
    According to Schiff the ignorance is “likely to remain the case until the fall becomes a crash, which I don't think will begin until the Dollar Index breaks 80. At its current rate of decline that level could be breached before year end, perhaps by election day.”

    The decline of the US dollar accelerated in recent weeks on a rise in coronavirus cases in the United States and indications of a pickup in global economic activity. The ICE US Dollar Index, which tracks the greenback against a basket of six major rivals, fell 0.4 percent on Friday to 92.635 and traded at its lowest since July 2018. Meanwhile, gold continued its rally to hit fresh all-time highs.
    “Coronavirus just accelerated the process of the dollar’s fall and there’s nothing that the Federal Reserve could do right now to preserve the dollar from falling,” Schiff said on his podcast.
    He explained that the negative interest rates are actually far more negative because the US government is using the CPI (Consumer Price Index) “which barely scratches the surface on how high inflation is.”
    According to Schiff, gold will supplant the dollar because the euro and other currencies are not ready to take its place. “No other currency will take the dollar’s place, real money will take its place, particularly gold, because gold was there before the dollar,” he said, noting that the greenback “did a lousy job, and now gold is taking its spot back.”
    Schiff said: “The entire house of cards economy that has been erected over the years, and the Federal Reserve has been the architect of this house of cards economy, is rested on the foundation of the dollar’s reserve currency status. If the dollar loses that status then the foundation crumbles and the whole house of cards topples.”
     
    proIsrael-nonIsraeli

    proIsrael-nonIsraeli

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    ‘The world is going back to a GOLD STANDARD as the US dollar is about to collapse’ – Peter Schiff
    22 Jul, 2020
    View attachment 20221

    As the world grapples with Covid-19, precious metals’ prices are pushing higher. Massive moves in gold and silver are coming, according to veteran stockbroker Peter Schiff.
    He says silver may hit $50 per ounce. The rally will be short-lived, however, with Schiff describing the metal as “the new bitcoin.”
    The rise in gold and silver price is “about to explode” and this is just the beginning of a much bigger move, according to Schiff.
    “We’re barely getting started,” the CEO of Euro Pacific said in his podcast. He explained that is also coinciding with what’s happening to the US dollar, because gold is the greenback’s “principle competitor” when it comes to reserve assets.

    “The US dollar is about to collapse and when it does, gold is going to take its place. The bottom can drop out of the dollar any day, and gold could go through the roof any day. So, this is a real race and you have to get out of the dollar before it’s too late,” Schiff said.
    The yellow metal “will resume its role at the center of the monetary system,” and “the world is going back to a gold standard whether the Federal Reserve wants it or not.”
    And that could happen as soon as this year or the next, according to Schiff.
    "US dollar is about to collapse" - when?
     
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    https://www.bloomberg.com/news/articles/2020-07-31/world-currencies-revel-in-cruelest-month-for-dollar-since-2010

    Markets
    U.S. Dollar Suffers Its Worst Month in a Decade
    By Olivia Konotey-Ahulu
    ‎July‎ ‎31‎, ‎2020‎ ‎

    The euro rose the most in a decade this month, the British pound is headed for its best July since 1990, and for the first time this year, every major currency in the world rose against the greenback.
    A gauge of the dollar against its biggest peers is down 4.4% this month, the worst rout in a decade.
    The world’s reserve currency of choice was already on the back foot when U.S. President Donald Trump raised the idea of delaying elections this year. He added fuel to a rout that was driven by falling U.S. Treasury rates, real yields near all-time lows and disappointment over America’s response to the coronavirus compared to Europe.
    Data Thursday showed the world’s biggest economy shrank at a record 32.9% annualized pace in the second quarter, even amid unprecedented levels of monetary and fiscal stimulus from the Federal Reserve and the U.S. government. While that’s a 9.5% contraction on a non-annualized basis -- significantly less dire than economic data out of Europe this week -- the likes of Germany and France were quicker to implement lockdowns.
    Also, the U.S.’s jobless claims figures, which showed an almost 900,000 increase in the number of people claiming continued benefits, warns of the impact a resurgence of the virus across the nation will have on the economy.

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    Euro:
    • The common currency advanced more than 5% this month to the highest since May 2018. Bolstered by the European Union’s 750-billion-euro ($888 billion) rescue plan, appetite to bet on euro gains over the next month is the highest since March, according to risk-reversal options
    • The euro moved against the dollar “faster than anticipated,” said Manuel Oliveri at Credit Agricole, “EUR/USD has been driven higher by diverging expected growth differentials with asset allocation a strong driver,” he said
    Pound:
    • Sterling has recovered losses since the lockdown began in March, trading as high as $1.3170 on Friday. It’s 5.8% gain this month is the biggest since 2009
    • The British pound’s “fundamental backdrop is still soured by a lack of progress in EU-U.K. trade talks and by concerns over negative rates,” said Jane Foley, head of foreign-exchange strategy at Rabobank
    Japan’s Yen:
    • The Japanese yen strengthened more than 2% against the dollar in July. Its appeal as a haven is growing as the dollar drops

    Swedish Krona:
    • At 6.3%, the krona’s advance this month beat its nearest contender by almost a percentage point. The world’s best-performing major currency climbed to 8.6413 per dollar, the strongest in two years
     
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    US becoming more like Greece as national debt explodes, market analyst tells Boom Bust
    31 Jul, 2020 13:37

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    The US Federal Reserve left interest rates near zero and vowed to use all the tools to support the recovery from an economic downturn that Chairman Jerome Powell called the most severe “in our lifetime.”
    RT’s Boom Bust is joined by Michael Pento, the founder and president of Pento Portfolio Strategies, to discuss the US central bank’s monetary policy and its impact on the economy.
    “The Fed is now forced to permanently monetize our debt,” he says, adding “Our national debt is now 130 percent of GDP. We are looking more and more like Greece as time goes by. We are adding to that debt $4 trillion in fiscal 2020.”
    Pento continues: “By the way, that debt is now 1,000 percent of our revenue… The Fed is not going to be able to extricate itself from this problem, just like it wasn’t able to extricate itself out of the Great Recession.”
    He reminds that “In 2019, before anyone ever heard about the Wuhan virus, the Fed was cutting rates three times. So, we’re trapped in this endless cycle of yield repression and debt monetization for a very long time, unfortunately.”


     
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    Financial Times

    US Dollar
    Dollar blues: why the pandemic is testing confidence in the US currency
    After the greenback suffers its worst month in a decade on economic concerns, debate about its global role is stirring

    July 31, 2020 5:16 pm by Colby Smith in New York and Eva Szalay and Katie Martin in London

    When coronavirus kicked off a historic economic crash and sent stock markets into freefall in March, investors and companies all over the world rushed in to the one currency they trusted above all others: the dollar.
    Desperate for safety and in need of cash to keep businesses functioning through an economic crisis on an unprecedented scale, they snapped up the US currency wherever they could, sending it racing higher.
    The scale of the rally — 9 per cent in as many days — was extreme, matching the scale of the crisis. But the move itself was predictable. When the going gets tough, the dollar jumps — a pattern familiar from the 2008-09 financial crisis and in every geopolitical flare-up of recent decades.

    “If there is turmoil, you want safety,” says Eswar Prasad, a professor at Cornell University and a former senior IMF official. “And where do you go? The dollar.”
    Just a few months later, however, the US currency has suffered its poorest monthly performance in 10 years, hitting its lowest point against a basket of peers since 2018. The 5 per cent drop in the value of the dollar in July might sound modest, but in the relatively stable foreign exchange market that counts as dramatic.
    Such a sharp move in the dollar inevitably raises a series of questions that go to the heart of the global financial system and the unique role that the US currency plays.
    In the short term, the decline in the dollar is reflecting the potential weakness of the US economy as the pandemic spreads in southern states.
    While much of the world is slowly crawling out of lockdowns, the US has been an outlier among developed economies for its patchy management of the crisis and increasingly fractious political debate over how to suppress the virus. Fund managers are betting that its central bank will need to lavish yet more stimulus on the economy, weakening the dollar further along the way.
    But there are also more fundamental worries playing out. Gold is soaring to record nominal highs as investors seek an alternative to the US currency. Some are openly asking, once again, whether US institutions are now too weak for the world to rely on the dollar. American politics is becoming even more polarised and potentially dysfunctional just at the moment when the EU is showing new signs of unity and purpose.

    Fed chair Jay Powell warned that the trajectory of the US economy would ‘depend significantly on the course of the virus’ © Kevin Lamarque/Reuters
    Brad Setser, a former US Treasury official now at the Council on Foreign Relations, says it is “far-fetched” to believe the euro will suddenly supplant the dollar. Instead, he says, “US mismanagement” is more likely to slowly chip away at the dollar’s standing. Given his controversial suggestion to delay November's presidential poll, Donald Trump’s willingness to accept the outcome of the election will be closely watched.
    For the time being, however, academics broadly agree that the moment when the world decisively shifts away from the US currency has not yet arrived. “The events in March have, if anything, strengthened the international role of the dollar,” says Hyun Song Shin, head of research at the Bank for International Settlements.
    Mark Sobel, a former senior US Treasury official and US chairman of Omfif, a financial think-tank, agrees: “It reminded the world about the indispensable role of the Federal Reserve in the global financial system.”


    Stimulus weakens the greenback
    These are confusing times in markets. A decline in the dollar’s value is typically a sign of global economic optimism. It generally shows that other countries have good growth prospects and that dollar-based investors are happy to put their money to work in riskier locations.
    The outlook is different this time. The dollar’s decline has accelerated in the past week, while government bond prices have remained close to record highs, a reflection of expectations of low growth and a desire for safe assets. That suggests investors have identified a specific American problem.
    “The US government bond market is reflecting the fact that the US outlook is weakening,” says David Riley, chief investment strategist at BlueBay Asset Management in London. “There’s going to have to be more stimulus. This is where the gold bug view comes in, where sooner or later this is a debasement of the global reserve currency. So you go into gold.”
    Gold hit a record high of $1,983 a troy ounce this week. Even sterling, held down against other major currencies by the prospect of dropping out of EU trade structures without a safety net at the end of this year, has gained against the dollar, reaching over $1.30, a 7 per cent climb in July.

    German chancellor Angela Merkel elbow bumps European Council president Charles Michel. Much of the dollar’s decline has been against the euro, which has appreciated 10 per cent since May © Thierry Monasse/Getty
    The dollar has been dragged down by the sharp rise in coronavirus infections in the US, which have prompted fears of another round of economically damaging lockdowns.
    “We’ve totally blown it in terms of controlling Covid,” says Stephen Roach, a professor at Yale University and a former chair of Morgan Stanley Asia.
    At the most recent meeting on monetary policy this week, Fed chair Jay Powell warned that the trajectory of the US economy would “depend significantly on the course of the virus”. Taken together with his commitment to supporting the economy, investors anticipate additional stimulus in the coming months.
    “The Fed is likely to be easier than most other central banks,” says Michael Swell, head of global fixed income portfolio management at Goldman Sachs Asset Management. Benchmark interest rates are likely to remain at or near zero for years, he says, “even in the event that you see significant improvements in growth and employment”.


    Rising euro
    Much of the dollar’s decline has been against the euro, which has appreciated 10 per cent higher since May. In July, EU leaders agreed on a coronavirus rescue package for the bloc that hinges on pooling debt across member states for the first time with a large series of new collective bonds. This solidarity stands in sharp contrast to the political paralysis in the US and opens up the possibility that, eight years after the peak of the eurozone debt crisis, the EU and euro area may be able to start offering a more institutionally robust and liquid currency to conservative long-term investors such as central banks.
    But that will not happen overnight. “The euro has been missing a deep low-risk bond market and now there is a possibility that this will change. But even so, it will take a long time to develop and become as mature and liquid as US Treasuries,” says Jeffrey Frankel, a former economic adviser to the White House and a professor at Harvard University.
    “There really are not sufficiently large alternatives to allow [reserve managers] to shift en masse out of dollars,” says Barry Eichengreen, economics professor at the University of California, Berkeley.

    Donald Trump at a coronavirus briefing. The US has been an outlier among developed economies for its patchy management of the crisis © Yuri Gripas/Pool/EPA
    Reserve currency status confers significant benefits to the host country. For the US government, it has not only meant additional income in the form of seigniorage — the profits made when issuing a currency — but also the capacity to borrow significant sums of capital very cheaply.
    Further bolstering the dollar’s supremacy is the fact that it plays an outsized role in global trade and finance, with nearly a fifth of all trade deals outside the US invoiced in the currency.
    The dollar is even more entrenched in global currency trading, with some 88 per cent of the deals in the $6.6tn daily market traded against the greenback, according to the Bank for International Settlements. This further limits the ability of central banks to diversify away from the dollar, according to Francesca Fornasari, head of currency solutions at Insight Investment.
    As most currencies are, by default, traded against the dollar, euros would be of little use when, for example, an emerging market central bank needs to stop its currency from plummeting. “Central banks hold reserves as a security blanket for when markets become dysfunctional. If you’re the central bank of Indonesia and your currency is measured against the dollar, you really need to have dollars to be able to intervene,” says Ms Fornasari.

    Mark Sobel, a former senior US Treasury official and US chairman of Omfif: '[March] reminded the world about the dollar’s dominance as a reserve and financing currency' © OMFIF
    But this is not the first time in recent years that the dollar’s dominance has been questioned.
    In 2008, an academic study by Mr Frankel and Menzie Chinn, a professor at University of Wisconsin — Madison, predicted that by 2022 the euro would surpass the dollar as the world’s leading reserve currency. At the time, the euro was powering towards its all-time high, peaking close to $1.60 in April of that year to round off an 82 per cent rise against the dollar. In the same period, the dollar index shed 40 per cent of its value, hitting a record low in March that year.
    The onslaught of the global financial crisis just a few months later, which unleashed demand for safe dollar assets, ended that bout of speculation about the euro supplanting the US currency.
    The latest available data from central bank reserve managers shows that the US currency’s share of their stockpiles increased in the first quarter of the year, with nearly 62 per cent of the roughly $11tn of global foreign exchange holdings allocated to the dollar. This is just two percentage points lower than in 2008, according to data from the IMF. The euro’s share of reserves peaked in 2009 at 28 per cent; in the first quarter of the year it stood at 20 per cent.

    Harvard professor Jeffrey Frankel: 'It will take a long time [for the euro] to develop and become as mature and liquid as US Treasuries' © Andrew Harrer/Bloomberg
    Currency watchers once looked to China as the biggest threat to the dollar’s dominance. But, so long as its financial system remains subject to capital flow restrictions, the renminbi cannot play the part of a global reserve currency, analysts say. Its share of global central bank holdings has increased but still stands at only 2 per cent.
    But regimes do change, posing a long-term rather than immediate danger to the dollar. “People assume that nothing the US does could turn into a situation where the dollar loses credibility. But that’s wrong and you only have to look at Britain as a cautionary tale,” says Mr Frankel. “Sterling used to be the world’s reserve currency but it lost its status, which shows that you can lose that exorbitant privilege.”
     
    dyyyy

    dyyyy

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    Frankly it is impossible to bypass US regardless of how many SWIFT alternatives one will create.

    That is unless "Belgium, Denmark, Finland, the Netherlands, Norway, and Sweden " think that having access to Iranian Market is much more beneficial to them than having access to US Market.
    It's not one or the other, they want to have a margin of independence, the fact that the US dictated on them the sanctions on Iran opened some eyes, and it's not like they're going to war with the US, they just want to have an alternative ready if things go wrong.

    It's not 0 or 1 : the dollar dominates completely or is collapsing.

    There are just changes happening that might make a difference in the long run.
     
    Manifesto

    Manifesto

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    Can't believe the Bosnian, Romanian, and Emirati passports are now ranked higher than the US one. :oops:

     
    proIsrael-nonIsraeli

    proIsrael-nonIsraeli

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    It's not one or the other, they want to have a margin of independence, the fact that the US dictated on them the sanctions on Iran opened some eyes, and it's not like they're going to war with the US, they just want to have an alternative ready if things go wrong.

    It's not 0 or 1 : the dollar dominates completely or is collapsing.

    There are just changes happening that might make a difference in the long run.
    "It's not one or the other" - actually it is exactly "one or the other".
     
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    Can't believe the Bosnian, Romanian, and Emirati passports are now ranked higher than the US one. :oops:

    US passport is not what it used to be. Many with dual citizenships who don’t live in the US are trying to give up their US passport to avoid paying unnecessary income taxes to the US if they have no reason to live or retire in the US. An EU passport is more valuable especially for those who are about to retire and want to live the rest of their life with dignity. In average, US retirees are among the most miserable in the world because they cannot keep up with inflation and the medical system for them is degrading.

    Incidentally, giving up a US citizenship has become harder and costlier. They want you to stay inside the taxation system as part of bring more money into it. Also, a well kept secret, if a US citizen chooses to retire abroad, his social security benefits get taxed 80%. In other words, they don’t want you to take your own earn money outside the country. Yet the US deficits are still skyrocketing at 150% GDP… This is not sustainable. Lebanon economic fate is a good example. Lebanon is a tiny country that can be bailed out overnight but who’s going or willing to bail out the US? Too big to fail? Remember the USSR… Or even the British Empire…
     
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    It has become fashionable for the news media to attack Trump mostly on non sense Hollywoodish superficial stories serving for entertainment and for the masses to parrot what they hear incoherently since they have nothing of substance to discuss.

    Sadly enough, areas where Trump is really messing up and will hurt the US long term, the other side is oblivious to it. The most hurtful to the USD is Trump weaponizing it. Imagine taking a civilian airplane full of passengers and turning it into a military airplane loaded with missiles... The world has been doing the US a great favor in trusting and using its currency that was supposed to be coved with gold. It’s not the other way around as the uneducated think. Foreign countries that use dollar transactions among themselves for goods and services exchanged that the US has nothing to do with are in fact boosting the value of the dollar therefore helping Americans enjoy imports purchase power they didn’t earn. Now that Trump is betraying and excessively abusing the World trust that was given to the US for political and hegemonial reasons not just against Iran and Venezuela but Russia and China as well, the consequences are becoming obvious. Last year Putin said: We like the Dollar but the dollar doesn’t like us so we are moving away from it. That says it all… Not to mention bitcoin by itself is another problem for the USD…
     
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    Elon Musk says ‘China rocks’, warns that the US may start losing due to ‘complacency’ & ‘entitlement’
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    While tensions between the US and China are spiraling, Tesla and SpaceX CEO Elon Musk has warned that America has become too “complacent” with its dominant position and this could lead to its demise.
    In a recent interview with Automotive News publisher Jason Stein, the tech billionaire lauded the “smart, hardworking” people of China, where Tesla opened one of its plants.
    “China rocks in my opinion. The energy in China is great,” he said in a podcast when asked about the country and its electric vehicles strategy. He added that the Chinese are “not entitled, they’re not complacent, whereas I see in the United States increasingly much more complacency and entitlement especially in places like the Bay Area, and LA and New York.”
     
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    Russia proposes $20 billion in new investment projects with China
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    Shanghai, China © Global look Press


    Six new projects, worth $20 billion in total, may soon be added to an already long list of Russia-China joint investment initiatives, Russia’s Ministry of Economic Development has revealed.
    The proposal has been reviewed by a special working group, the Intergovernmental Russian-Chinese Commission for Investment Cooperation, which held its first meeting of the year on Thursday. The body considered proposals from companies responsible for the implementation of investment initiatives. One of the proposals included plans to build a gas and chemical facility in Russia’s Leningrad region.

    The commission, set up in 2014 at the initiative of the two countries’ presidents, is currently supporting around 70 investment projects, with a total value of $112 billion. It focuses on coordinating and strengthening investment flows between the two trading partners.

    China is Russia's largest trading partner, with the cross-border trade volume having grown for several consecutive years and reaching a record $110.75 billion at the end of 2019. Moscow and Beijing want to double their trade; however, the coronavirus pandemic may hamper the ambitious plan. In the first half of 2020 the year-on-year turnover between Russia and China fell by over six percent to $49.15 billion.
     
    V

    Viral

    Member

    German & French arms producers want to reduce use of US technologies in military production – report

    1596415686411.png


    France and Germany want to cut their technological dependence on the US – a NATO ally – and rely more on their own products when it comes to manufacturing military equipment, according to German newspaper Welt am Sonntag.
    Military producers in Germany and France are reportedly attempting to phase out US technologies in helicopter construction, making a new assault rifle for the German Armed Forces (Bundeswehr), as well as a new fighter jet developed under the Future Combat Air System (FCAS) program, led by the two nations’ planemakers.

    The protection of sensitive data is one of the reasons behind the push to gain more independence from the US in military production, the German outlet reported. Moreover, the companies are concerned that Washington maintains control over any equipment using its technology under the International Traffic in Arms Regulations (ITAR), and can therefore block arms exports.

    “Without ITAR and other US regulatory systems, Europe gets more freedom in who to supply with military products,” said Florent Chauvancy, sales director of the Helicopter Engines Department of French manufacturer Safran, as cited by the publication.

    One of the advantages of 100 percent European-made products is that these enterprises’ data remains in Europe and does not fall into the hands of non-European countries.
    According to the report, Safran wants to partner with German manufacturer ZF Friedrichshafen to develop a new drive which could be installed in a large military drone. However, it is currently unclear whether the European military’s bid to completely avoid US technology is a realistic one.

    The news comes shortly after the US announced the withdrawal of roughly 12,000 US troops from Germany, as US President Donald Trump repeatedly accused Europe – and Berlin in particular – of failing to pay its share of NATO's defense costs. At the same time, the president said he doesn’t want to “protect” Germany, as it pays “billions of dollars” for imports of energy from Russia.


    The US has been vocally opposing closer cooperation between Russia and Germany on energy, including the construction of the Nord Stream 2 pipeline along the Baltic Sea, while trying to boost its liquefied natural gas (LNG) shipments to Europe. While last year Washington only managed to halt the project, it has recently stepped up pressure on investors and all European firms involved in it.

    “It’s a clear warning to companies that aiding and abetting Russian malign influence projects will not be tolerated. Get out now or risk the consequences,” US Secretary of State Mike Pompeo said earlier this month, in a clear warning to the parties involved with the project.
     
    Mrsrx

    Mrsrx

    Somehow a Member
    Staff member

    German & French arms producers want to reduce use of US technologies in military production – report

    View attachment 20247


    France and Germany want to cut their technological dependence on the US – a NATO ally – and rely more on their own products when it comes to manufacturing military equipment, according to German newspaper Welt am Sonntag.
    Military producers in Germany and France are reportedly attempting to phase out US technologies in helicopter construction, making a new assault rifle for the German Armed Forces (Bundeswehr), as well as a new fighter jet developed under the Future Combat Air System (FCAS) program, led by the two nations’ planemakers.

    The protection of sensitive data is one of the reasons behind the push to gain more independence from the US in military production, the German outlet reported. Moreover, the companies are concerned that Washington maintains control over any equipment using its technology under the International Traffic in Arms Regulations (ITAR), and can therefore block arms exports.

    “Without ITAR and other US regulatory systems, Europe gets more freedom in who to supply with military products,” said Florent Chauvancy, sales director of the Helicopter Engines Department of French manufacturer Safran, as cited by the publication.


    According to the report, Safran wants to partner with German manufacturer ZF Friedrichshafen to develop a new drive which could be installed in a large military drone. However, it is currently unclear whether the European military’s bid to completely avoid US technology is a realistic one.

    The news comes shortly after the US announced the withdrawal of roughly 12,000 US troops from Germany, as US President Donald Trump repeatedly accused Europe – and Berlin in particular – of failing to pay its share of NATO's defense costs. At the same time, the president said he doesn’t want to “protect” Germany, as it pays “billions of dollars” for imports of energy from Russia.


    The US has been vocally opposing closer cooperation between Russia and Germany on energy, including the construction of the Nord Stream 2 pipeline along the Baltic Sea, while trying to boost its liquefied natural gas (LNG) shipments to Europe. While last year Washington only managed to halt the project, it has recently stepped up pressure on investors and all European firms involved in it.

    “It’s a clear warning to companies that aiding and abetting Russian malign influence projects will not be tolerated. Get out now or risk the consequences,” US Secretary of State Mike Pompeo said earlier this month, in a clear warning to the parties involved with the project.
    5 links from RT.com ...always makes me wonder if i am in a bubble if all my news comes from the same source ...any 1 source alone is a bad one read other opinions. The truth is almost always somewhere in between.
     
    L'arbalette

    L'arbalette

    Well-Known Member
    5 links from RT.com ...always makes me wonder if i am in a bubble if all my news comes from the same source ...any 1 source alone is a bad one read other opinions. The truth is almost always somewhere in between.
    RT is very trustworthy. As trustworthy as the Chinese Communist Party newsletters that another forum member was using to explain Covid did not originate in China.
    Don't believe these leftist cry babies that tell you RT is a propaganda machine at the service of the Kremlin and just focused on enabling populists and sowing division in western democracies.
     
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