Moneyflow towards the Dollar

[Albarq]

Money flows towards trust and stability. Decade after decade America has proven that they, regardless of the sometimes zany politics that goes on, have the ability to generate new sources of wealth. It has just the right balance of education, legal system, taxation, policing and infrastructure to support continued innovation. People are not subject to random persecution on a large scale and generally left to get on with their lives as any normal country should do. The rich can definitely probe and poke at loopholes in the laws, because they can afford vast teams of lawyers, but are generally susceptible to the same laws because the juries or judges are less corruptible than other jurisdictions. This is why the dollar continues to thrive.

Currently, confidence and stability are pointing in that direction because investors choose to buy safe assets whose attractiveness is increasingly influencing the system, such as the US dollar, with current global uncertainty with inflation and high interest rates which can trigger quite significant changes.

[tabas]

Let us see how the effect will come since Saudi Arabia has dropped their grip on the US dollar. They're about to join BRICS or did they already? The effect of it won't be in an instant but a change is probably coming within a few years from now. But I think that the USA won't just allow this BRICS to emerge as you've said OP, they're the engine of this world and they're believing that there's no way that another alliance or country should kick them out from their post. I'm in no side of them, it's just interesting to see how these world powers are reacting to each other's move.

[WillyAp]

Let us see how the effect will come since Saudi Arabia has dropped their grip on the US dollar.

I bet the Saudis pay in $ when in need for weapons.
9% of the US Oil comes from Saudi Arabia.

[junmisakiro]

To an extend, the COVID happened to be stipulated program to crumble the economy in a global factorization while the US as the world power had already made an hedge abscond the disasterous economy outbreak.
So obviously the US government intentionally launched that program after covering its economy systems up while other countries economy suffers COVID outcome with the crumbling of the economy.
[/quote]

I also suspect that COVID-19 is allegedly a deliberate program to generate profitable insecurity globally and that the United States has a big role to play in dealing with its effects. and also America's fear of the growth of other countries' profits which could implicitly shift its position, giving rise to a global profit conflict that would be detrimental to other countries. In these conditions, it appears that the US and other countries face complex dynamics of global advantage, as the saying goes "Where there is strength, there is resistance." This shows that profitable global competition often involves fundamentals of power and conflict. In my country, Indonesia, even though it is not directly involved in the global debate as has been discussed, Indonesia is also feeling the beneficial impact of global events, including the COVID-19 epidemic. Indonesia as a developing country has its own challenges in maintaining profitable stability and competing in global demands without ignoring concern for the welfare of its people. In dealing with the flow of money towards the dollar, Indonesia needs to strengthen the domestic economy, increase competitiveness and maintain national economic balance without being too affected by external dynamics that might affect the country's currency exchange rate.

[WillyAp]

A lot of anti US feeling here.
It's so strong that people see conspiracy around every corner.
To create a virus who then is declared Pandemic by an ineffective acting World organism is not so easily predictable, but for conspiracy artists making the US an all powerful extraterrestrial body that is no issue.

[pooya87]

I bet the Saudis pay in $ when in need for weapons.

Considering how almost all the weapons Saudi family buys is from US, it is not much of a bet to say they pay in dollar
Besides this family has been ordered to invest all the money they had in United States all these years, which means all their money that is in dollar is also tied up in the US.

That still doesn't mean they aren't joining the global dedollarisation movement though...

[WillyAp]

That still doesn't mean they aren't joining the global dedollarisation movement though...

I didn't say that either.
The world won't dedollarize in the next 50 Years.
Maybe a ww3 makes a global dedollarisation happen, but most likely the Dollar Enemigos would not like that. 

I think more country will use the dollar as a national currency, now there are 11.
Only 2 use Bitcoin, and bitcoin is pretty unsuitable as it is.

Litecoin is much better for fast and inexpensive transfers. But that is a different matter. 

[stompix]

Something about the USA and the US dollar you must know.
~
The US dollar loses its purchasing power a lot since many years.

Good, now please do the graph for the BRICS countries, the yuan, the ruble, the rupee, the rand and the real.
To save you some pain, the ruble went through redenominations in the last decades so  we need to add some extra 3 zeros to that.

So let's see the last 10 years:
BRL to USD Chart -59.55% (10Y)
https://www.xe.com/currencycharts/?from=BRL&to=USD&view=10Y
INR to USD Chart -27.99% (10Y)
RUB to USD Chart -62.17% (10Y)
CNY to USD Chart -14.29% (10Y)
ZAR to USD Chart -40.74% (10Y)

Much Brics currency, much devaluation, such garbage currency, wow!

A lot of anti US feeling here.
It's so strong that people see conspiracy around every corner.

17 million green cards rejected in 2023 alone might be one of the reasons!

[tabas]

Let us see how the effect will come since Saudi Arabia has dropped their grip on the US dollar.

I bet the Saudis pay in $ when in need for weapons.

They might or they will source it out from other manufacturers that will allow them to pay in whatever currency they want to. But I guess since their alliance with BRICS is at hand and has been vulgar, are they going to purchase it from any of those participating countries that are also into arms manufacturing?

9% of the US Oil comes from Saudi Arabia.

Aside from that, they're also known as suppliers and have one of the biggest shares globally. If my research is right, it's about 16% or so as per the global share that they're doing for the entire world. That's a lot of share coming from them.

[Darker45]

BRICS is indeed a political instrument. No question about that. That's the design. However, it might not matter much whether it is supported by capital investors or not. If you take a look at the member countries of BRICS, you can easily notice how there's a strong presence of authoritarianism in their states. If you talk of investments, the organization could bring in much money not coming from private companies or investors but from the states themselves. China could entice a country to join BRICS not necessarily because it brings with it a big body of private investors but because it can itself shower the country with grants and projects.

But, yeah, countries are trapped not because they are forced to be in that situation but because they willingly and selfishly sell their nations. Mine included.

[WillyAp]

17 million green cards rejected in 2023 alone might be one of the reasons!

You got a point. I wasn't even aware.

They might or they will source it out from other manufacturers that will allow them to pay in whatever currency they want to. But I guess since their alliance with BRICS is at hand and has been vulgar, are they going to purchase it from any of those participating countries that are also into arms manufacturing?

Weapon system is not that you ditch your Chrysler and buy a Toyota. There is tooling, replacement parts, ammunition sizes, stocked and needed.
I think Saudi Arabia and much of the east had their experience with Russian weaponry. Going Chinese?
So far only a few countries were allowed to buy. One is Venezuela. (No money for medicines, but weaponry?)  

https://chinapower.csis.org/china-global-arms-trade/  

[tabas]

They might or they will source it out from other manufacturers that will allow them to pay in whatever currency they want to. But I guess since their alliance with BRICS is at hand and has been vulgar, are they going to purchase it from any of those participating countries that are also into arms manufacturing?

Weapon system is not that you ditch your Chrysler and buy a Toyota. There is tooling, replacement parts, ammunition sizes, stocked and needed.
I think Saudi Arabia and much of the east had their experience with Russian weaponry. Going Chinese?
So far only a few countries were allowed to buy. One is Venezuela. (No money for medicines, but weaponry?)  

https://chinapower.csis.org/china-global-arms-trade/  

I see, if they've got more experience doing that with Russia then they might just wait until they won't need to produce for themselves anymore but for the sales that they might do. Other than that, there might be some other manufacturers that they're going to ask for it or they will be offered to. Knowing that it is going to be Saudi Arabia, they'll surely want to do business with them. They prolly don't need to find one but the manufacturers are the ones that are going to get close to them and do business whatever they are in need of and lack of. Anyway, there's so much things that are happening globally, only the rich are the ones that are looking to expand and do a lot on their country because they've got a lot of funds.

[WillyAp]

Anyway, there's so much things that are happening globally, only the rich are the ones that are looking to expand and do a lot on their country because they've got a lot of funds.

In terms of investment Venezuela is flooded with the adventurous investor type.
Even so its not easy made legal they buy entire apartment blocks, houses, urbanizations and much more. All over middlemen

[tabas]

Anyway, there's so much things that are happening globally, only the rich are the ones that are looking to expand and do a lot on their country because they've got a lot of funds.

In terms of investment Venezuela is flooded with the adventurous investor type.
Even so its not easy made legal they buy entire apartment blocks, houses, urbanizations and much more. All over middlemen

But the entire economy status of Venezuela is what investors pushing them away aside from legal constraints. While you can live like a king there if your money is in dollars and you won't be spending bolivares or you want to convert it there, you'll be holding piles of cash for every coffee you will buy outside. I think that they're trying to rebuild their economy and have slashed a lot of zeroes to their money and the impact of it, I don't know. Maybe with better policies, government regime, they might be able to lessen that impact of hyperinflation in their country.

[WillyAp]

While you can live like a king there if your money is in dollars and you won't be spending bolivares or you want to convert it there, you'll be holding piles of cash for every coffee you will buy outside

Not any more, 2 $ pay for a coffee in a coffee shop. On street level its $0.5.
The way the legal investment is done only makes people turn towards the illegal investment.
Who wishes to appear in front of "law" Enforcement and declare that you are an investor?

Even the legal investment is full with inconsistencies.  

Other than that, there might be some other manufacturers that they're going to ask for it or they will be offered to. Knowing that it is going to be Saudi Arabia, they'll surely want to do business with them. They prolly don't need to find one but the manufacturers are the ones that are going to get close to them and do business whatever they are in need of and lack of.

Also a fabric you can't just build a canon. You need weapon-graded metals, The tooling to form weapon grade metals is not easy to come by. 

[pooya87]

The world won't dedollarize in the next 50 Years.

Dedollarisation is not something that happens over night. It is a long process and that process has already started.

Maybe a ww3 makes a global dedollarisation happen, but most likely the Dollar Enemigos would not like that. 

Only psychopaths and arms dealers like a war!

[WillyAp]

Only psychopaths and arms dealers like a war!

if you read the main press not only those.
Many people believe war is an adventure. Like a video game, remember the volunteers in Ukraine?

[alani123]

America's grip on the world could surely last a couple more decades for sure. We could see it remaining the same op economy and the dollar as the top currency however it's also imported to consider that there is something interesting about this dynamic.

The us population growth has been slowing and likely within a few years will be below replacement rate. At the same time wage purchasing power is dropping and the poor in America are becoming poorer. Unless there is a significant change in how things work then I think other world powers are going to surpass the empire America has been trying to build. my prediction is that inequality will be it's downfall.

[Maus0728]

America's grip on the world could surely last a couple more decades for sure. We could see it remaining the same op economy and the dollar as the top currency however it's also imported to consider that there is something interesting about this dynamic.

The us population growth has been slowing and likely within a few years will be below replacement rate. At the same time wage purchasing power is dropping and the poor in America are becoming poorer. Unless there is a significant change in how things work then I think other world powers are going to surpass the empire America has been trying to build. my prediction is that inequality will be it's downfall.

I think that grip you're talking about is probably going to last much longer, pretty sure that an economic collapse wouldn't mean that US would suddenly lose it's capability to influence using it's fiat and I don't believe that's ever going to be the case and it would be really difficult for a country that has their currency being used as a global currency to be going down and then suddenly losing their influence, that collapse isn't going to be happening in a decade, it's a really slow process that's going to get slower because the US are taking measures in slowing that collapse even just a little.

Do you have a data that supports the population growth of US is slowing because with all the stories of illegal immigration and asylum seekers due to wars, I think that population of US isn't going down anytime soon not to mention that they're not really the kind of country like China that controls their population and are now facing the consequences of their action.

[CryptopreneurBrainboss]

Even if you hate the US, the US is the engine of the world. There is no alternative.
One Alternative failed which was the dream of Simon Bolivar, a counterweight to the US
Money-flow is interesting, It shows where the capital feels safe. Remember the US is the world economic engine.

It won't last long, US being the engine of the world would not last long, the US dollar is already losing its relevance. Other country are beginning to abandon it as their currency of exchange. Without the US mingling in the affair of other countries and having a leverage, they would not have being the world power by now. Money doesn't flow towards the dollars technically but it flow towards the dominant currency which currently it's the US dollars but as I said it wouldn't last long. The US dollars is becoming a joke and so is their economy, the dollar isn't the strongest currency anymore as other currency are having more strength than the dollars but because the US is still the dominating country that's what is giving the dollar relevance.

China is on the path of overtaking the US as world power and by then the money flow will be towards the Chinese Yuan. China's economy is predicted to be the largest economy in world by 2050 because of the rate at which the economy is growing. When that happens, the dollars won't stand a chance to compete against the Chinese Yuan.