Author Topic: In China, Brazil’s President Calls for Alternative to US Dollar in International Trade  (Read 1141 times)

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Offline libertybele

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Not a good sign of things to come.

In China, Brazil’s President Calls for Alternative to US Dollar in International Trade

Brazil’s leftist president began a visit to China on Thursday by taking a swipe at the U.S. dollar and asking why the group of leading emerging economies known as BRICS could not use a currency other than the greenback to trade with each other.

President Luiz Inácio Lula da Silva’s made the comments in a speech at a bank in Shanghai established by the BRICS partners – Brazil, Russia, India, China, and South Africa.

“Every night I ask myself why all countries are forced to do their trade backed by the dollar,” da Silva said, to applause. “We can’t we do our trade backed by our currency? Why are we not committed to innovating?”...............

https://www.cnsnews.com/article/international/patrick-goodenough/china-brazils-president-calls-alternative-us-dollar
I Believe in the United States of America as a Government of the people, by the people, for the people; whose just powers are derived from the consent of the governed; a democracy in a republic; a sovereign nation of many sovereign states; a perfect union one and inseparable; established upon those principles of freedom, equality, justice and humanity for which American patriots sacrificed their lives and fortunes.  I therefore believe it is my duty to my country to love it; to support its Constitution; to obey its laws to respect its flag; and to defend it against all enemies.

Online Weird Tolkienish Figure

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Not a good sign of things to come.

In China, Brazil’s President Calls for Alternative to US Dollar in International Trade

Brazil’s leftist president began a visit to China on Thursday by taking a swipe at the U.S. dollar and asking why the group of leading emerging economies known as BRICS could not use a currency other than the greenback to trade with each other.

President Luiz Inácio Lula da Silva’s made the comments in a speech at a bank in Shanghai established by the BRICS partners – Brazil, Russia, India, China, and South Africa.

“Every night I ask myself why all countries are forced to do their trade backed by the dollar,” da Silva said, to applause. “We can’t we do our trade backed by our currency? Why are we not committed to innovating?”...............

https://www.cnsnews.com/article/international/patrick-goodenough/china-brazils-president-calls-alternative-us-dollar

Anyone know the debt to income ratio of all those nations? I doubt it's much better than our's.

Nobody is holding a gun and forcing you to trade in dollars, the currency just holds up better over time.

Offline Kamaji

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Another perennial issue that never seems to go anywhere, most likely for the principal reason that, however bad the U.S. currency may be, it is usually in better shape than the currencies of most of the rest of the world.

Now, of course, the use of the USD as the currency of account is largely voluntary; however, in order to do an international deal, multiple parties are involved, including various middlemen, like shippers, and they typically want to be paid in a strong currency that isn't subject to the political or economic vagaries of the two countries involved (other than the U.S.), and may refuse to participate in an international transaction that isn't cleared in USD.