Canada joins the dollar dumping team, signs a deal with China to bypass it

[Robert Paulson]

http://www.cbc.ca/news/politics/canada-china-sign-currency-deal-aimed-at-boosting-trade-1.2828707

after the EU, UK and Russia Canada joins the club and does a currency swap with China to trade directly CAD - Yuan without using USD.

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[worle1bm]

More propaganda. This is a tiny little fraction of Canada's total exports/imports, no real consequence.

[dontCAREhair]

There is no real effect to the dollar. If someone were to sell Canadian dollars for us dollars then buys RMB, then the other person were to sell the RMB for us dollars then sell these for Canadian dollars then the net effect on the US dollar is zero

[Swordsoffreedom]

There is more effect to it than that since it skips the step of using the US dollar as a reserve currency
Since China accepts Canadian directly their is no fees for sending money back to the USA eventually.

Authorized by China's central bank, the deal will allow direct business between the Canadian dollar and the Chinese yuan, cutting out the middle man — in most cases, the U.S. dollar.

[Lethn]

More propaganda. This is a tiny little fraction of Canada's total exports/imports, no real consequence.

Nothing more funny than Americans in denial about the state of their economy.

[devphp]

That's so undemocratic on the part of Canada, it should be punished.

[worle1bm]

More propaganda. This is a tiny little fraction of Canada's total exports/imports, no real consequence.

Nothing more funny than Americans in denial about the state of their economy.

Alternately, this swap represents a tiny fraction of business transactions and has no impact on the U.S. or the dollar.

[Miracal]

I think it is not about dumping dollar, just bypass the dollar and exchange between Canadian dollar and Renminbi directly. It shows the China is becoming one of Canada's biggest business partners and eliminating the trading obstacle.

[Robert Paulson]

at this pace dollar reserves will become useless real soon and will be dumped.
thats when America gets to import its inflation back.

[Lethn]

More propaganda. This is a tiny little fraction of Canada's total exports/imports, no real consequence.

Nothing more funny than Americans in denial about the state of their economy.

Alternately, this swap represents a tiny fraction of business transactions and has no impact on the U.S. or the dollar.

I'm sure that's what you'll say when all the other European countries abandon you as well

[painlord2k]

More propaganda. This is a tiny little fraction of Canada's total exports/imports, no real consequence.

Nothing more funny than Americans in denial about the state of their economy.

Alternately, this swap represents a tiny fraction of business transactions and has no impact on the U.S. or the dollar.

Surely it is just a scratch for the USD.
But the number of scratches is starting piling up.
At some point, if you have enough scratches, it is no so different from being skinned.
It is just slower and less painful.

[worle1bm]

at this pace dollar reserves will become useless real soon and will be dumped.
thats when America gets to import its inflation back.

Can you explain why the dollar will become useless?

[xmasdobo]

at this pace dollar reserves will become useless real soon and will be dumped.
thats when America gets to import its inflation back.

Can you explain why the dollar will become useless?

He's deluded. The dollar is not becoming useless SOON. How can it go from #1 currency in the planet by a large margin to "useless" soon? That would mean an insanely big crash that would turn into WW3 minimum, and that is not going to happen. If the dollar crashes, it will be a gradual crash.

[kutaka]

at this pace dollar reserves will become useless real soon and will be dumped.
thats when America gets to import its inflation back.

Can you explain why the dollar will become useless?

He's deluded. The dollar is not becoming useless SOON. How can it go from #1 currency in the planet by a large margin to "useless" soon? That would mean an insanely big crash that would turn into WW3 minimum, and that is not going to happen. If the dollar crashes, it will be a gradual crash.

15 years I bet. Just look at USA enormous debt. Good luck with that. And it is still growing!

[Robert Paulson]

at this pace dollar reserves will become useless real soon and will be dumped.
thats when America gets to import its inflation back.

Can you explain why the dollar will become useless?

because once no one holds it in their reserves because they can just trade directly using their own national currencies people will dump it on the open markets creating massive inflation in America.

[worle1bm]

at this pace dollar reserves will become useless real soon and will be dumped.
thats when America gets to import its inflation back.

Can you explain why the dollar will become useless?

because once no one holds it in their reserves because they can just trade directly using their own national currencies people will dump it on the open markets creating massive inflation in America.

Ok, so how much is this currency swap between Canada and China worth total, and as a percentage of dollars held as reserves in Canada?

[Lethn]

at this pace dollar reserves will become useless real soon and will be dumped.
thats when America gets to import its inflation back.

Can you explain why the dollar will become useless?

because once no one holds it in their reserves because they can just trade directly using their own national currencies people will dump it on the open markets creating massive inflation in America.

Ok, so how much is this currency swap between Canada and China worth total, and as a percentage of dollars held as reserves in Canada?

It's not the currency swap that's the problem for America, it's the fact that they're planning to dump the dollar, China has been planning it for awhile now and Russia is openly talking about it, who else is left to hold it? You also have various countries trying to get their gold back, the "Fuck yeah America!" types just simply don't understand how money is created and works or for that matter how little America actually produces and exports.

[picolo]

at this pace dollar reserves will become useless real soon and will be dumped.
thats when America gets to import its inflation back.

Can you explain why the dollar will become useless?

He's deluded. The dollar is not becoming useless SOON. How can it go from #1 currency in the planet by a large margin to "useless" soon? That would mean an insanely big crash that would turn into WW3 minimum, and that is not going to happen. If the dollar crashes, it will be a gradual crash.

There are many examples of first world currency that went from #1 to not being used much in a very short time without having a WW.
The American Dollar is massively overvalued and can loose quickly its reserve currency status, especially if more and more Dollars are printed out by the FED and the Forex players shift to not using that many Dollar in reserve or to exchange.
It could be a slow change, a change in a few years or a violent change but it will happen soon enough; the USA are not even the biggest economy, they are only second to China in terms in PPP and their huge debts and massive State to feed are going to kill the Dollar and shattered the Economy.

[painlord2k]

Ok, so how much is this currency swap between Canada and China worth total, and as a percentage of dollars held as reserves in Canada?

Dieing from a thousand cuts is not intended to be fast.

But there is an inverted network effect there:
everyone leaving the $ take away more and more appeal to stay there from the others.

It is not the initial worth of the deal that matter, it is how fast the worth go up in time.
USD 2.5 billions is a drop in the ocean, but a storm is made off of drops
Now direct commerce is more efficient between China and Canada, so it can increase at the expenses of the US.
Now a country willing to commerce with China can use US or CANADA $ or € or Yen.
So a country selling stuff to Canada can acquire canadian $ and use them to buy stuff in China.
This also reduce the need of USD for others.

Obviously, Bitcoin will eat the lunch of all of them, just give it time.


 

[worle1bm]

It's not the currency swap that's the problem for America, it's the fact that they're planning to dump the dollar, China has been planning it for awhile now and Russia is openly talking about it, who else is left to hold it? You also have various countries trying to get their gold back, the "Fuck yeah America!" types just simply don't understand how money is created and works or for that matter how little America actually produces and exports.

So, this is basically just FUD.

Let's go one at a time.

It's not the currency swap that's the problem for America, it's the fact that they're planning to dump the dollar,

Canada isn't dumping the dollar, that's not what is happening. The title is misleading, intentionally.

China has been planning it for awhile now and Russia is openly talking about it

Sure, both countries have an interest in the U.S. dollar losing reserve status. Russia doesn't really matter for a myriad of reasons; isolation, sanctions, lack of access to capital markets, stalling economy, etc. China has a strong interest in weakening the dollar, definitely.

who else is left to hold it?

Literally the rest of the world. You named two countries dude. Seriously, who else?

You also have various countries trying to get their gold back

Who?

"Fuck yeah America!" types just simply don't understand how money is created and works or for that matter how little America actually produces and exports.

Consequently, you have folks online who read enough crappy "news" stories and think the sky is falling. What are the stats on America's imports and exports by the way? Especially in relation to others? I'd like to see how little it is.