Why the us dollar might crash significantly

[Barikui1]

As joe Biden administration is planning to sieze the Russian central bank asset worth 300B us dollar to fund the war in Ukraine, it may sound logical but it is a move that will not only distabilize the world financial system, but it will also make almost all none western countries around the world to shift away from the dollar, euros currencies as foreign reserves, because no body will see such an event taking place and not taking actions to preserve it asset.
This to me is a very wrong move that will kill the trust that existed between the west and global south.
Major countries around the world will definitely interpret it this way, today it's Russia, tomorrow it will be us, and that action will crash the value of dollar and euros around the world.
https://www.businessinsider.com/us-eyes-using-300-russia-frozen-assets-help-ukraine-backfire-2023-12

[Winterfrost]

Permit to ask. Is there a thing for the dollar and euro? Both currencies are having a significant increase in value and so many countries local currencies are being affected. The world financial system is not confined to the dollar or euro. We should look at the benefit of the action Joe Biden has taken to resolve the war between the Russians and Ukrainians and not focus on the effect it has on the financial system. The lives matter more, the moneary system can come later. Let there be peace!

[Alpha Marine]

So let me get something straight, the funds have been seized since 2022 and most of the funds are in European banks, so what do they want to do with those seized funds? Return it to Russia? I don't understand how seizing the funds did not make other countries realize that " today is Russia, tomorrow it will be us" but using the seized funds how they see fit is what would cause an uprising against the West.

One way or the other those funds will be used for something else, it's not going back to Russia. Even if it won't be used to help Ukraine in the war against Russia, it would be used for something else.

[coupable]

This does not make any sense at all, and I doubt that Biden would actually dare to do this. This is an event that will ignite the entire world.
The assets confiscated in American banks are not owned by those banks and will remain the property of their owners until a decision is issued to unfreeze them.
The Biden administration cannot do this solely under the pretext of financing the conflict in Ukraine (which it is supposed to have no direct income from and is content to support Ukraine with its own money), and freezing deposits is the most that can be done due to clear reasons: First, Russia can confiscate the assets for the United States and its allies. Secondly, Russia can use these assets for the same purpose, which is to finance its war in Ukraine. Third is the repercussions of this on all depositors in American banks, who will immediately demand the withdrawal of their assets, which could lead to a comprehensive collapse of the financial system.

[goaldigger]

They seized the money since last year, and so far Russia is not backing down despite of those pressure and in fact they become aggressive. If the US is doing this to protect the interest of the public and the Ukraine people, then this can be good but if its for their personal interest as well, this might bring us into a more deadly conflict that we can’t ever afford to happen. Russia is a very powerful country and they can stand for years with War, let’s just hope for a more peaceful resolution and hope that no more war will ever happen to any country.

[yhiaali3]

If Trump were the current president of the United States, I would expect him to do this madness and more, but I do not expect that Biden would take this crazy, ill-considered step.

“Seizing $300 billion worth of Russian Central Bank assets to finance the war in Ukraine” is the fatal mistake a Biden administration could make because it would destabilize the world even more horribly than it already does.

No one can guarantee what reactions Russia will take in response to this crazy step and what the political, economic, and even military repercussions of this decision will be.

[Darker45]

The world financial system has never really been stable. But there are a hundred other factors involved in terms of foreign currency rates. The US has done countless of blunders in the past. It even remains good in committing the same at present, but the US dollar remains the strong and coveted currency.

It won't stay like this forever, of course, but this seizure issue right now isn't a reason for a crash. The issue of currency performance isn't just about trust. It's more of factors that drive a country's economy.

[hugeblack]

It will lead to collapse, but all countries will develop a contingency plan so that if their assets are banned, they will have enough cash to control their people. Unfortunately, it will return the world to economic and financial blocs that prevent international trade and lead to a rise in the prices of goods, services and products. It is also not difficult for the United States to Printing $300 billion, given that its debts exceed $30 trillion.

[DrBeer]

As joe Biden administration is planning to sieze the Russian central bank asset worth 300B us dollar to fund the war in Ukraine, it may sound logical but it is a move that will not only distabilize the world financial system, but it will also make almost all none western countries around the world to shift away from the dollar, euros currencies as foreign reserves, because no body will see such an event taking place and not taking actions to preserve it asset.
This to me is a very wrong move that will kill the trust that existed between the west and global south.
Major countries around the world will definitely interpret it this way, today it's Russia, tomorrow it will be us, and that action will crash the value of dollar and euros around the world.
https://www.businessinsider.com/us-eyes-using-300-russia-frozen-assets-help-ukraine-backfire-2023-12

1. the assets of the central bank of the terrorist country are being seized not FOR WAR, but to help Ukraine suffering from terrorist aggression from Russia.
2. This will have no effect on the dollar or the euro. And I really hope that these funds, until the end of the war will be managed by an international organization, so that Ukraine will receive a regular % of these funds, which will go to pay the suppliers of weapons.
The main funds can work for the economy of the countries assisting Ukraine.

What is the point of such a scheme?
- it will allow lending to western companies
- Ukraine will receive a good amount of money on a regular basis, which will go directly to the needs of the AFU, bypassing the pockets of our corrupt officials.
- after defeating the country of terrorists, the main amount of money will be credited to reparations, for the reconstruction of Ukraine, which again will be beneficial for the economy of the countries involved in this process.

Accordingly, there are no risks for the dollar or the euro - they will work exclusively for the economy.

The pro-Russian media and "experts" are now trying to promote the narrative that if assets are seized, no other country will keep its funds in the US and EU. All normal countries WILL keep their assets in the US and EU because it is stability and guarantees. Only criminal regimes that realize that they will be held accountable for their crimes will not keep their funds in the US and EU

[Manny@11111]

US currency is one of the most stable currency around and will be difficult to crash like anticipated since bulk of international trades depends on it.
Removing 300b from Russian will not have any negative  impact on it as is just not that significant enough to crash it. This has been ongoing for 2 years now that they have been clapping down on Russian assets and yet US dollar keep appreciating.

[summonerrk]

As joe Biden administration is planning to sieze the Russian central bank asset worth 300B us dollar to fund the war in Ukraine, it may sound logical but it is a move that will not only distabilize the world financial system, but it will also make almost all none western countries around the world to shift away from the dollar, euros currencies as foreign reserves, because no body will see such an event taking place and not taking actions to preserve it asset.
This to me is a very wrong move that will kill the trust that existed between the west and global south.
Major countries around the world will definitely interpret it this way, today it's Russia, tomorrow it will be us, and that action will crash the value of dollar and euros around the world.
https://www.businessinsider.com/us-eyes-using-300-russia-frozen-assets-help-ukraine-backfire-2023-12

But at the same time, Russia also has some funds (money) belonging to the United States. And he said that if Biden decides to stop spending frozen money on the war in Ukraine, he will also start spending the money that he has at his disposal. I also wouldn’t want this to happen, I would like there to be an exchange of equivalent amounts, since money belonging to the state should and is located in it.
I would not like an escalation of the conflict, because this would greatly undermine trust, and I think that if such a step were taken, many countries would withdraw their assets from the United States.

[Kakmakr]

This action will just increase the tension between Russia and the West, because that money are mostly owned by rich Oligarchs. These people acquired that money, through their political connections.

The other side of the coin is this ==> That money could help Russia to buy more weapons and ammunition to fund the war against the Ukraine. (I would rather froze those accounts and seize the assets and then use that money to rebuild the Ukraine after the war)    

[kryptqnick]

Firstly, it's not just the US, but an international tea that includes people from the EU, the US and Ukraine. Secondly, it was just a recent discussion about the prospects of such a decision, but the implementation is still considered challenging, and the decision hasn't been made yet. More importantly, I don't think it will impact the USD's value and/or stability because that money won't be released into the overall supply but will instead go directly to the Ukrainian fight against Russia (and only if the decision is actually made).
The USD has been very stable lately, and it's the world's global reserve currency, with a very strong dominance on that market (no other currencies are close to challenging it).

[pooya87]

I think it is too soon to speculate about a "significant crash" of US dollar but it is a possibility.

What is certain and we can analyze these days is the dedollarisation. Basically as US regime acts like a dictator on the global scene, more and more countries start thinking about distancing themselves from United States and the dollar. We've already seen this speed up over the past 2 years.

Each time US regime makes more stupid decisions, it pushes more countries into doing "dedollarisation". For example when US sanctioned Russia and seized a lot of their assets, forced businesses to leave the country, etc. many countries started thinking about alternative payment systems.
Another major decision that significantly increased the speed of dedollarisation was the US regime's support of genocide that is still ongoing in Palestine.

This is a process that started many years ago, maybe we could place the start in 2008 which we also have Bitcoin creation that is another form of dedollarisation. It has been slow up until early 2020-2021 and so far in the past 2-3 years it has been speeding up.

Keep in mind that the US national debt is also increasing at an unprecedented rate. They are literally printing trillions in a matter of 2-3 months!
US dollar will continue weakening in the future but a significant crash still requires some additional factors that aren't there yet.

[stompix]

This does not make any sense at all, and I doubt that Biden would actually dare to do this. This is an event that will ignite the entire world.

Which world?
North Korea , Iran and Syria?
Oh, the US is trembling in fear!

You know how much money has already been confiscated and used for Ukraine help by countries who are barely the size of a US state and Russia didnothign but babbling like madman knowing they can't do a thing?

Think for a moment, you have a bully beating up a smaller kid, taking his backpack and when another bigger bully comes and takes the bully phone that guy starts screaming for the world police!! Laughable, right?

First, Russia can confiscate the assets for the United States and its allies.

Yeah, they already did nationalize what they can, the only difference is that
- no sane people store assets in Russia's bank
- even russian allies store they financial assets in Eu and US banks as they know their current banking system sucks!

What is certain and we can analyze these days is the dedollarisation.

Still chewing khat all day to feed your delusions? How's that inflation in Iran doing?

[Fuso.hp]

Russia is a very big and powerful country so economic ban on their country does not have any bad effect on their country. In the war between Ukraine and Russia, America directly supported Ukraine and directly supplied them with weapons, but they could not make Russia retreat from the war. Russian football has been banned from FIFA and many other economic sanctions have been imposed on the country, but the country's economy is fine because everything is available in their country and some countries are directly dependent on Russia. All the nuclear power plants that have nuclear power plants are directly supplied by Russia, so no country would want their nuclear power plants to shut down, and if they didn't, they would have to maintain their relationship with Russia. Russia is nuclear strong and they are very strong in agriculture so no sanctions can affect them badly.

[Fiatless]

As joe Biden administration is planning to sieze the Russian central bank asset worth 300B us dollar to fund the war in Ukraine, it may sound logical but it is a move that will not only distabilize the world financial system, but it will also make almost all none western countries around the world to shift away from the dollar, euros currencies as foreign reserves, because no body will see such an event taking place and not taking actions to preserve it asset.
This to me is a very wrong move that will kill the trust that existed between the west and global south.
Major countries around the world will definitely interpret it this way, today it's Russia, tomorrow it will be us, and that action will crash the value of dollar and euros around the world.
https://www.businessinsider.com/us-eyes-using-300-russia-frozen-assets-help-ukraine-backfire-2023-12

The global economy is highly dollarized, hence it will be difficult if not impossible to avoid the dollars in global financial transactions. For now, the dollar has no competition in the global economic space so nations will still be forced to keep their reserves in the US dollar. There have been different efforts to create a currency that will compete with the dollar but none of them have lived up to expectations. Until there is a viable alternative, nations will still have to fall to the dollar, even if they risk losing it because of sanctions.    

So let me get something straight, the funds have been seized since 2022 and most of the funds are in European banks, so what do they want to do with those seized funds? Return it to Russia? I don't understand how seizing the funds did not make other countries realize that " today is Russia, tomorrow it will be us" but using the seized funds how they see fit is what would cause an uprising against the West.

Let me explain what the OP was trying to explain. Most countries use the US dollars as foreign reserves and most of them are kept in foreign banks. Russia has huge funds that have been frozen in European banks due to the invasion of Ukraine. OP feels that many countries might be forced to dump the US dollar or the Euro as a reserve currency and also withdraw their assets from foreign banks because these funds could be seized if they ever have disagreements with the West. He is assuming that the fear of confiscation of funds, many nations might start seeking alternatives to the dollars to avoid sanctions.  

[aylabadia05]

<snip>

How concerned are people around the world about the fall of the dollar because they have their own currency? Even in several official forums, state officials have dared to say that they will no longer be dependent on the dollar.
Here I want to emphasize personally that the financial system will never be stable so that those who understand the working system of fiat currency will never care about what happens to that currency.

[DrBeer]

If Trump were the current president of the United States, I would expect him to do this madness and more, but I do not expect that Biden would take this crazy, ill-considered step.

“Seizing $300 billion worth of Russian Central Bank assets to finance the war in Ukraine” is the fatal mistake a Biden administration could make because it would destabilize the world even more horribly than it already does.

No one can guarantee what reactions Russia will take in response to this crazy step and what the political, economic, and even military repercussions of this decision will be.

What can Russia do? Nothing but empty sound! Remember their “heroic” squeals, what will happen if the West supplies weapons to Ukraine? What's the result? NOTHING. Remember their screams: “If you give missiles to Ukraine, we will answer you, you will suffer terrible punishment.” What's the result? NOTHING ! I remember the screams from the Kremlin with threats to stop the supply of gas, oil, frozen Europe and a bankrupt dollar! What's in the toga? NOTHING !
Remember - Russia is a fake country, a country of cheap shit...

The only thing that Russia has done is to show that it is a country that does not keep its word, does not comply with its obligations, its word is an empty phrase. Do you think that you can do business honestly with such people!? As Russia acts, so is how it is treated, and its squeals about compliance with the law in relation to its reserves look comical....

You cannot understand one thing - Russia is a terrorist country. And if she is not stopped in Ukraine, helping Ukraine, she is GUARANTEED to continue her terror, first in Europe and then further. What they are already OPENLY declaring! And as practice in Ukraine has shown, Russia is afraid of only one thing - a strong and painful response. This means you can’t play softly and “gentlemanly” with her - if Russia fired 1 shell at you, fire 10 at her, and then 20 more! And just then she will tuck her tail between her legs and run away screaming. Russia is a vile and cowardly country that can only wage war against a obviously weaker one, or vilely - by committing terrorist attacks. She is not capable of more - study history

Economically, Russia is an empty place in the world economy. What can it influence? Gas? So the EU is already living well without it. Oil ? This way the market will stabilize, and all attempts at economic terror in Russia have failed. And what else in the global economy can Russia influence? No matter what!

[Churchillvv]

If this could be done to Russia another high profile country then smaller economy countries will be afraid hence surely find away to move there reserves else where because the effect of the action of Joe Biden can turn to other countries.

Since the world power can seize such an amount (assets) from Russia in the name of helping Ukraine it will surely get to other countries too so they will just have to move away the US dollar and Euros that might end up crashing the currencies as you said earlier.

I don't even see Joe Biden's action to be a way of disrupting the war rather I think is just for a selfish reason that has to do with the US itself.

Though Russia has been doing more harms than God to other smaller force countries from history but I don't see this to be a punishment to Russia. There are other ways to handle such cases.