CNN's Fareed Zakaria discusses the potential impact on the US dollar after Russian President Vladimir Putin announced that he favors using the Chinese yuan for financial settlements with other countries. #CNN #News
Zakaria identifies key part of Putin-Xi meeting you may have missed
I always gird myself for the bad news when I watch Fareed. Always dire, often ominous.
Often followed by Rushbots
Don’t confuse style with substance.
@marions: Fareed is sharing bad news before it’s too late. Have you heard of BRICS currency? It’s Brazil, Russia, India, China and South Africa. They are bringing Argentina Iran, Indonesia, Saudi Arabia and many other countries launch alternate currency to replace dollar. It’s a sinister plot indeed. Sad to see that India is double crossing the US.
It’s looking challenging out there. We really need to focus on performance and return on investment. Meritocracy must return.
Wealth to Power: The Unusual Origins of America’s World Role
The US does not care how its financial policy affects other countries, and this imposes risks to all countries who use dollars. That is the main reason that more and more countries start using other currencies.
What does US Dollar composed from or represent for?. China, Japan, and many other countries buys US debt. It actually not only represent the US economic power, but also represent each of those countries confident to US Dollar as an instrument to store value and exchange.
It would be positive if Yuan is able to internationalized its existence and become competitor to US Dollar, but as Fareed said, it would be opposite to China domestic goal. They want to compete the US Dollar but peg their currency to US Dollar in non market acceptable manner.
Or, perhaps countries can do exchange using pre-modern method such as barter or using gold as an instrument of exchange?. yes, certainly they could. To some extent they could and some has done it that way. However, to value those exchange is still using US Dollar, and even gold is valued in US Dollar for fair measurement.
After all, it is not about US Dollar, Yuan, gold, or any other medium. It is about trust that the exchange is done in fair manner, and those medium is a representation to that trust.
I can only hope that someone in office is listening.
I’ve heard this story before. The dominance of the dollar derives from always paying our debts, from doing so for centuries, from managing our country’s currency competently, and the strength of our military – all really because the dollar is a known, predictable quantity. Russia is not currently stable and there are reasons to say the same about China. I expect little from this move by Putin and Xi.
Nice to hear a sober take on the matter. So many people have been misled by conspiracy theorists.
@giga noob Ok well we can go back to gold and silver, ha ha good luck with that, we’ll all be living like it’s the 19th century.
@William Bretton woods was 20th century
Most people are blind to what’s truly going on in this world.
Teach us !
If he mentioned it I missed it, but russia is requiring all payments for oil and gas to be made in ruples. Maybe India wants to pay in ruples, but either way they are not being given a choice.
I’m an ex-pat in Central America and have lost 20% of my social security income just to the exchange rates in the last nine months, and that is not including the staggering inflation Latin America is suffering. This is real, not getting any better, and it hurts.
The reserve should’ve been a basket of currency rather than just the dollar. This makes all participants invested in the system rather than trying to build an alternative system that excludes the dollar. ❤ GOD Bless Everyone
This is very thoughtful- an unusual find on the internet / YouTube comment threads! We are probably heading for such a system as you describe with Crypto / Bitcoin as the medium of trade. Love & P*E*A*C*E* 🙏💟✝☮
Revenues are the problem, not spending. Since Reagan, investors have been preferentially permitted to divert investment into wealth accumulation instead of investing in public infrastructure and capitalizing human development (education, health, etc.). Multinational corporations have avoided paying for the security of open markets that American foreign policy and defense have made possible.
The US is a net importer country which means other countries have dollars. China is a net exporter country which means its very difficult for other countries to get yuans. On top of that the yuan is sometimes a fixed currency and sometimes floating. Mostly depending on the mood of the chinese governement. Good luck having trade with a currency that almost no other country has and doesn’t get its value through free markets.
China has largest trade surplus or highest negative net imports on its gdp in world. it only needs payment to be made in yuan. to maintain this surplus, its in its interest to have a stable yuan. it wont replace usd but coexist, last ten years growth trend however favors the yuan
The dollar won’t go anywhere very soon. The key point is that these other “rival” options are currencies that can be, or I should say are, manipulated by the central governments. They will never become global trading currencies unless that aspect changes (but it won’t)
Fareed’s reports are always top rate for valuable analysis; and this in particular is poignant, powerful, and prescient.
0:37 – 0:59
THANKS FAREED FOR POINTING OUT WHY THE WORLD NEEDS ALTERNATIVES TO THE US DOLLAR!
Kitconews did a great piece explaining how exactly Yuan can replace USD in part of international trading. That’s not to say USD will be replaced completely but it’s enough for the US economic hegemony power to fall!
Good to see that we are driving both of our adversaries closer to each-other.
Yup what could go wrong?
@Fingar Yoriaz I guess that’s what happens when you put grandpa Simpson in power.
I can only hope that someone in office is listening. ❤ GOD Bless Everyone
Most people are blind to what’s truly going on in this world. ❤ GOD Bless Everyone