The American allies are turning their backs on them?
The global economy is changing, now it is becoming much clearer that the dollar is going to lose its hegemony as reserve currency, and this year is being crucial for that. We are living through difficult times, without a doubt, and I think it will be even more difficult, because we are living through a paradigm shift and we are seeing that countries definitely do not have friends but interests.
I know that this seems very easy to say, but the truth is that there are many things that are happening on a geopolitical level that are changing many things in the way the world moves.
It is no secret that this country has grown impressively in recent years in economic terms, and it is doing everything possible to make its currency, in a certain way, displace the dollar in world exchanges, and it is already succeeding, as far as I can see. For example, oil has recently begun to be traded between China and Saudi Arabia in a currency other than the dollar, in this case the Chinese Yuan. more information here
Another important news is that recently the President of the European Commission, Ursula von der Leyen and Macron, President of France, and other important personalities of the European economy are going to have a closer deal with China, so they have traveled to meet with the Chinese President. more information here
All this shows many things, and to a large extent, as far as I can see and understand, is that the US is losing strength, because in general they handle the dollar (which is only backed by international trade) as a weapon, and not only as a currency. But as some countries start, by mutual agreement with China, to do trade and pay for it not with US dollars but with yuan, no doubt it is a total blow against the dollar.
Considering that China has a good relationship with Venezuela, and is one of the main countries in terms of oil reserves, that one of the main oil producers in the world is Saudi Arabia, as well as Russia and that these countries handle a large percentage of the world's oil production, therefore, there is a large amount of Dollars that are going to return to the US... with the pertinent consequences.
Of course, this may be just speculation on my part, but I only speak based on the news that are happening and that I am studying, I think things are not looking good for the Biden government, but especially for the general population, who is the one who ends up suffering the most from these situations.
I bid you farewell, I hope you enjoy this type of reading. GREETINGS.
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আপনার পোস্টটি অনেক তথ্যবহুল।বিশেষ করে বর্তমান বিশ্বের অর্থনৈতিক পরাশক্তি গুলোর মধ্যে বেশ অস্থিরতা বিদ্যমান। চিন,ভারত সৌদি আরব সহ অন্যান্য কয়েকটি দেশ ডলারের চেয়েও শক্তিশালী মুদ্রার মাধ্যমে ডলারের বিপরীতে যে অর্থনৈতিক ব্যবস্থা চালু করতে চাচ্ছে তাতে আমি ব্যাক্তিগত ভাবে দুঃশ্চিন্তা গ্রস্থ আছি । আপনার সুন্দর বিবরন ও অর্থনৈতিক সম্পর্কে গভীরজ্ঞান সম্পন্ন লেখাটি পড়ে আনন্দিত ও উপকৃত হয়েছি।ধন্যবাদ।
There is a very strong economic struggle, I think this is going to continue for the next decades, the dollar as a currency has a long time in the leadership, losing its hegemony is not going to be so easy or so fast. We just have to educate ourselves and see how we can get out of this global situation.
Thank you for your comment
I have a minute knowledge of the global economy but what I do believe is that the shift away from the dollar is a gradual process and is unlikely to happen overnight. The dollar still remains the most widely used currency for international trade and financial transactions, and the US economy remains the largest in the world.
It is a reality, no economic change happens overnight, much less when we talk about macroeconomics.
But what is certain is that the dollar is no longer as strong as before, to a great extent it lost a good part of the transactions made in China, because this same country is doing what is necessary for its currency to be the one used for international trade and not the dollar, we are talking about the country with the second largest population in the world, as well as the second most powerful economy.
If we see that some of the Latin American countries are also accepting to trade with Yuan and not with dollar, it is another hard blow, and yesterday, the president of Fra cia gave hard statements regarding this issue. After a meeting with the Chinese president. So, indeed, for now the US is still the most powerful country, but even the Roman empire, after hundreds of years of power, fell.
Thanks for commenting.