Vietnam, the Philippines and Brunei will join other major Southeast Asian economies in an interconnected QR code payment system that aims to promote use of local currencies and reduce dependence on the U.S. dollar.Nikkei Asia
Indonesia, Thailand, Malaysia and Singapore are already progressing with the implementation of bilateral transactions using QR codes among one another -- which was initiated last year, said Perry Warjiyo, governor of Indonesia's central bank, on Friday.…
Vietnam, Philippines and Brunei to join cross-border QR payment scheme
Erwida Maulia And Ismi Damayanti, Nikkei Staff Writers
19 comments:
American “experts” claim that there is no chance of the USA losing power over other nations, since there is no chance of the dollar being replaced as a global reserve currency.
This delusion runs so deep that few Americans can break free of it.
In reality, de-dollarization does not mean switching to a different reserve currency. It simply means agreeing to use various currencies other than dollars.
Indeed, BRICS opposes the use of any nation’s currency as a global reserve currency. The BRICS nations see, for example, how the CFA franc lets France enslave fourteen African nations. France talks about “phasing out” the CFA franc, but this means replacing it with the “eco” system, which will be the same thing with a different name. However Africa no longer believes the lies. The “eco” system won’t fly.
Or consider the euro fiasco. Twenty nations gave up their monetary sovereignty, which is the cornerstone of any nation’s sovereignty. They surrendered their monetary policy (i.e. authority over interest rates) to the European Central Bank in Frankfurt, and their fiscal policy (i.e. their ability to create money) to the European Commission in Brussels.
This is a great deal for participating nations that have trade surpluses like Germany, who suck euros from all participating euro-nations that have trade deficits. The latter must borrow all their euros from banks, since they cannot obtain (net) euros by selling to other euro-nations.
And now, even though Germany had a great deal, Germany committed suicide by cutting itself off from cheap Russian energy and materials. Austria also had a great deal, as did the Netherlands, Ireland, Italy, and Spain. They too threw everything away and committed suicide for Washington. IDIOTS! The euro-idiocy continues today. Last year Croatia gave up its monetary sovereignty and started using the euro.
Meanwhile the rest of the world moves on.
India recently signed an agreement with the UAE to trade in Indian rupees and Emirati dirhams instead of US dollars.
China and Brazil now trade in their own currencies, ditching the US dollar as an intermediary.
In 2013, Australia agreed with China to trade in national currencies.
In March 2022 India and Russia entered for a Rupee–Ruble Trade Arrangement.
In July 2022 Russia and Iran agreed to trade in their own respective currencies.
The more this happens, the more the USA will lose power. And it’s happening faster and faster.
Businesses conduct trade in various currencies all the time. Because they have to. Their trading agreements aren't newsworthy for some reason.
Mike has explained what literal de-dollarization would entail.
On 31 Aug 2023 Rep. Marjorie Taylor Greene (R-GA) told her supporters
“As BRICS gains momentum, the US economy becomes weaker because the members of the grouping can circumvent American sanctions and trade in their own currencies. BRICS countries are making trade agreements where they are saying: we’ll buy from you, and you’ll buy from us. We don’t care about US sanctions and we’ll sell to one another in our own currency, not the US dollar. What is going to happen to our children when the US dollar means nothing anymore, because Russia, China, and India, with their huge population of billions of people, have more buying power in their own currencies than we do?”
Greene attacked Biden’s handlers, who are “Turning a blind eye to the rise of BRICS. While Washington is doing nonsense – including providing all kinds of support to Ukraine– other countries are organizing together because they are tired of the United States. This is one of the most devastating things that can happen to us.”
(This is according to RT. I have not been able to find a secondary corroboration that Greene said this.)
https://www.rt.com/news/582193-brics-devastating-us-taylor-greene/
In other news Brazil will resume trade and political ties with Cuba.
The American clown empire gets weaker every day.
https://au.news.yahoo.com/brazil-restore-trade-political-ties-001237572.html?guccounter=1&guce_referrer=aHR0cHM6Ly9uZXdzLmdvb2dsZS5jb20v&guce_referrer_sig=AQAAAKHfr9S3wJseHLSJ_Bsiq9EBJHtbuC283LZUdPPQT1UCxoyPnTJa7f4ILF_yNkUg5EdglU-fyn6rjT4SfWAbsXidiTa35DnPzNGSAnXAkdDn9l9UTjvjkvkZr5XivRQ_wQTElxUvDWgRPql1QsTKAQJsID0OWq9k31556q7eyB70
A visitor of this blog seems to think that de-dollarization is no big deal, since, “Businesses conduct trade in various currencies all the time.”
However we are talking about the USA as a whole. In 1975 the USA changed from being a net exporter to a net importer. Since then the U.S. net trade deficit has become larger every year. It is the world’s largest trade deficit by far. In 2022 the USA imported $971.7 billion more in goods than the USA exported.
The USA has gotten away with this because many foreigners still accept dollars for their goods. However, as de-dollarization accelerates, foreigners will demand more and more dollars for their goods, causing extreme inflation in the USA. Eventually foreigners will no longer accept any dollars at all, at which point the USA will be finished in its current form.
The shelves in stores like Wal Mart will become totally empty. The only way the USA will possibly survive is by bringing back manufacturing, and becoming self-sufficient. However this cannot happen, since the USA is too geared to serving its financial markets (i.e. making money from money). Rich parasites, having sucked their America host dry, will flee abroad. The USA will break up into several smaller nations. Areas that achieve some measure of self-sufficiency will survive (more or less). Areas that do not will become “Road Warrior” wastelands whose starving hoards will invade healthier areas, causing continual wars and skirmishes.
The tragedy is that we saw this happening clearly at every step. Anyone who warned about it was attacked as a “conspiracy theorist.”
The first step was the 9-11 false flag, followed by the U.S. destruction of the Middle East. The final nail in the coffin was the U.S. economic war on Russia, beginning with the US-sponsored coup in Ukraine (Dec 2004) and expanding into the present war in Ukraine.
The USA is now on a deathwatch. When America is reduced to a “Road Warrior” wasteland, no one will care about “white supremacy” or “climate change” or LGBTQ(P) filth, or what sex they are.
Countries with weak currencies tend to run trade surpluses. Their exports are competitive, and they willingly sell them for fiat currency. They don't have much of a choice, yet they believe selling tangible goods for fiat is more virtuous than what the US is doing.
They also realize that fluctuations their trade balance would disrupt domestic employment.
“ In 1975 the USA changed from being a net exporter to a net importer. ”
Yo, that was a CIA cold war soft power initiative…. Yeah Won the Cold War but post war Didn’t work…
US now making adjustment in response to that post Cold War policy failure.., May go hot war we’ll see….
You say: “ In 1975 the USA changed from being a net exporter to a net importer. ”
Ok… What did that evolve from the apes by random chance? 😂😂😂😂😂😂
Your Darwin is showing you atheist pos…
Yo… dumb fuck.., EVERYTHING IS DONE BY PEOPLE..,
Get over it.,,
Arbitrage is what happened. Factory jobs that provided a middle class income for workers with only a high school education, moved overseas. America became a nation of consumers, at the expense of the working class.
How convenient that a soft power initiative is compatible with the search for the lowest labour costs.
“Your Darwin is showing you atheist pos…
Yo… dumb fuck.., EVERYTHING IS DONE BY PEOPLE..,
Get over it.,,”
Franko and Face Diaper Nebris seem angry at Mike Norman for some reason. Evidently they want to reduce this blog to a sewer.
As Brian Romanchuk says,
'My intellectual filter is that anyone discussing “reserve currency status” in relations to countries after the demise of Bretton Woods does not know what they are talking about.'
As Lavrov said recently, it's not about replacing the dollar as the global reserve currency but providing a workaround to the dollar in trade owing to the politicization of the dollar to promote US policy.
@ Tom Hickey
Yes, and the workarounds are not only to dollars, but to what dollars represent, which is a global network of political and economic relationships.
A dollar bill in your hand, for instance, represents the IMF system, the World Bank system, endless U.S. sanctions, the WTO, WHO, rule via corrupt puppet dictators, rule by Wall Street and the financial markets, and so on.
A dollar represents a global network of lies, greed, suffering, stupidity, and debt bondage. That network is now unraveling.
@Konrad
Yes. After I hit the publsh button, I thought to myself that I should have said "the dollar-based financial system" instead of just the dollar.
Lavrov was complaining about the weaponization of the Western financial system that is under US control.
Most of the rest of the world was sort of satisfied with the post-WWII system when it was more neutral. But it was never completely neutral in that neoliberalism involves neo-imperialism and neocolonialism. (There are other factors operative also but Lavrov was objecting specifically to the weaponization of the financial system that underlies commerce.)
What the ROW wants now is a re-alignment of the world order away from this social, political, and economic paradigm to one that is based on respecting the equality of sovereigns under international law, which was the supposed basis of the UN Charter. In addition, civilizational states are demanding recognition of civilizational differences as basic to the world system, instead of trying to impose Western civilization on everyone regardless of their preferences.
The Western-controlled financial system is now being used to impose Western dominance, which has been operative for the last half millennium, on the ROW. It is not just the dollar as the dominant reserve currency. The ROW know this and are acting accordingly in concert to address it peacefully among themselves without forming a bloc to challenge the West.
Instead, they view the West as challenging them in order to maintain the Western hegemony that is necessary for the current world system as it is configured to funnel wealth to the West, both real and financial.
The US controlled financial system. To get around that control, an alternative payment system is required, and countries have to co-operate to thwart Washington inspired sanctions. That would be an improvement over the black market method of sanctions-busting.
Talk about "reserve currencies" is an indication of economic illiteracy. Regulars to this blog should know this.
The Merrymen - Big Bamboo 1969
https://youtu.be/-5UlDU8-GAA
Money in the hand is the Yankee dollar bill
Money in the hand is the Yankee dollar bill
Money in the hand is the Yankee dollar bill
Money in the hand is the Yankee dollar bill
Oh, with the big, big bamboo, bamboo
O la la la la la la la la la
Working for the Yankee dollar
Well I asked my lady, "What should I do to make her happy and make love true?"
She said, "The only thing that I want from you is a little, little piece of a big bamboo"
With the big, big bamboo, bamboo
O la la la la la la la la la
. . .
“Most of the rest of the world was sort of satisfied with the post-WWII system when it was more neutral.”
Yes the world was complacent. There were exceptions such as the US destruction of Vietnam, Libya, Syria, Somalia, Afghanistan, etc., but most other nations meekly watched all and gave thanks that they were not being attacked. Russia’s leaders hoped that Russia would be accepted by the West as an equal if Russia groveled enough. Meanwhile China just wanted to make money.
In Feb 2002 the USA wanted Russia to invade Ukraine so the USA would have an excuse to divide Russia from Europe. Therefore the USA ordered Ukraine to radically increase its bombardment of ethnic Russians, forcing Russia to invade to stop it. Meanwhile the USA stole hundreds of billions in Russian assets, and destroyed Nord Stream II (26 Sep 2022). This woke up the world. No more complacency. No more watching all this and giving thanks that you were not the one being attacked. Everyone collectively realized that no one was safe from attacks by the West, led by the USA.
“But it was never completely neutral in that neoliberalism involves neo-imperialism and neocolonialism.”
Yes. Neocolonialism is simply colonialism with financial swindles rather than with bombs and armies. Financial colonialism is the most brutal of all. Consider what causes the highest death tolls of all (statistically). It is not disease, or natural disasters, or even wars, but famine, which can be easily engineered by financial sanctions.
Regarding the term “neoliberal,” the classical economists (Adam Smith, David Ricardo, John Stuart Mill, etc) favored liberalism, meaning freedom from feudalism, creditor oligarchs, and entrenched aristocracies. These economists wanted genuinely free markets that operated according to pure supply and demand. They wanted government to only become involved when there were problems such as credit bubbles, or monopolies, or environmental destruction.
Then came neoliberalism. which sought to re-establish the absolute supremacy of feudalism, creditor oligarchs, and entrenched aristocracies. The 1% must rule all, including governments. The 99% must remain serfs and debt slaves.
With neoliberalism there can be no win-win. There can only be the 1% enslaving the 99%. With neoliberalism the 1% only feel “wealthy” to the extent that they can make the 99% suffer. What counts is not the size of one’s wealth, but the size of the gap between the rich and the rest. This is the Western ideal. Hence we say that the West is neoliberal.
(Continued below)
(Continued from above)
“What the ROW wants now is a re-alignment of the world order away from this social, political, and economic paradigm to one that is based on respecting the equality of sovereigns under international law, which was the supposed basis of the UN Charter. “
Yes. The world would like Western rhetoric to be sincere, and not mere propaganda. The United Nations should be about uniting nations, not enslaving them beneath the West.
Tomorrow the W.H.O. (which is controlled by the USA and is part of the U.N.) will begin meetings with international health bureaucrats in Geneva. The goal is to establish a global treaty that will use vaccine passports, mandatory vaccination, “climate change” laws, and so on to enslave the planet.. With a new global treaty the WHO will declare a new “pandemic” whenever and wherever they like. All nations' laws and sovereignties will be subordinate. Instead of making “recommendations,” the W.H.O. will issue dictates, and everyone must obey by law. The WHO will dictate what drugs can and cannot be used for each pandemic hoax. Each new toxic vaccine for each new pandemic hoax will be created and distributed in 100 days or less. Pharma companies will have total and perpetual freedom from liability.
Naturally the World Economic Forum is tied up in this, as is Bill Gates and all the usual characters.
Will these psychopaths get away with all this? I doubt it. This is more of the same neocolonialism that the world is tired of, and is now moving beyond.
“In addition, civilizational states are demanding recognition of civilizational differences as basic to the world system, instead of trying to impose Western civilization on everyone regardless of their preferences.”
Yes, neocolonialism has cultural aspects, such as the Western demand that everyone submit to LGBTQ(P) supremacy, and the demand that Muslim nations dump all their traditions (e.g. the head scarf for women in Iran). The world now recognizes all of this as neocolonialism, fraught with hypocrisy. In the West, whites must be subordinate to blacks. In Africa, blacks must remain subordinate to the West.
As I see it, the entire West has late-stage dementia, and is desperately flailing about as it dies.
De-dollarization is not only about currency.
It’s about fair trade and mutual respect.
Here is a small but typical example…
Many U.S. and European airlines fly to Nigeria, which has Africa’s largest population and GDP. However the USA and Europe do not allow Nigerian airlines to fly to the USA or Europe. Western carriers don’t want any competition.
Nigeria has 15 airlines of various sizes. The largest is Air Peace, which flies to China, India, the UAE, and many other places. (And soon Russia.) Those same nations likewise fly their own airlines to Nigeria. However the USA, Canada and Europe allow only their own airlines to provide service to and from Nigeria.
The West pretends to support the “free market” while shutting out competition.
And Nigeria is only one example.
This is an example of how China, India, Russia, and so on respect Africa, while the West does not. That’s why the West is being increasingly expelled from Africa.
Q. What do you care if the West gets over on foreigners? What does it matter to you?
A. To quote Mark Twain, you cannot have an empire abroad and a republic at home. If rich people in your nation are screwing foreigners, then rich people in your nation are likewise screwing you. This is an ironclad rule.
Konrad,
The US-sponsored coup in Ukraine was 2014, not 2004.
"Indeed, BRICS opposes the use of any nation’s currency as a global reserve currency."
They can't. They're all export oriented. None of them is willing or able to be a net supplier of their currency.
https://en.wikipedia.org/wiki/List_of_sovereign_states_by_current_account_balance
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