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sonicruiser
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Should the global currency switch from the USD to the GBP?

Wed Feb 05, 2020 7:06 pm

There is a lot of talk in Forex circles about the fused geopolitical cocktail of currency and foreign policy. The USD is the default forex currency used by traders across global markets and infused deep into every corner and the financial roots at the heart of the banking world. Whoever controls currency controls the world. The key to America's power is not its military but the ubiquitous USD. You cannot stop an enemy when you need their currency. This allows America to dictate its worldview to every other country. If you risk stepping out of line, you will be cut off from the world. There is no possibility of peace in the world as long as the USD continues to dominate forex. The USD backed by corporate and political lobbyists from countries like Saudi Arabia and Israel view the military industrial complex as a way to prop up the USD in an effort to further their own special interests harmful and destructive to peace and stability in the world. To defang America, you must look at what enables its ability to act unilaterally and without consequence: the USD. America without its powerful USD is no stronger than Russia. An increasingly unilateral America previews the risks of concentrating instruments of financial power in the hands of a single country with impunity. The weaponization of the USD against any country America wishes to force compliance has been viewed by many as a form of economic terrorism hardly different than actual terrorism. Some in Europe's milquetoast political and economic circles quietly fear that they have given the American financial empire too much power and have now unleashed a monster that could come back to punish them with sanctions and tariffs on valuable European industries. The message is clear: Comply with American demands, or be cut off from the world. Against this ominous backdrop, should the world select a new single default currency, such as the GBP?
Last edited by sonicruiser on Wed Feb 05, 2020 7:13 pm, edited 1 time in total.
شما می توانید مردم را تحریم کنید ، اما نمی توانید سبک تحریم را اعمال کنید

You can sanction people, but you can't sanction style
 
johns624
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Re: Should the global currency switch from the USD to the GBP?

Wed Feb 05, 2020 7:13 pm

Not hardly. It was the GBP before the dollar and look where that got us. The Chinese want it to be the yuan. Would you prefer that over the USD? With Brexit, the GBP is even more irrelevant. To say that we would only be the equal of Russia without the USD is laughable.
 
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Dutchy
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Re: Should the global currency switch from the USD to the GBP?

Wed Feb 05, 2020 7:25 pm

Indeed Russia is weak, much weaker than the US even with the USD being the backup currency of the world. That said, part of the reason that the US can have such a trade deficit (e.g. the rest of the world send stuff to America for free), is because the USD is the back-up currency of the world. So much of US wealth is actually derived from it.
For the British Pound, no, Great Brittain isn't as great anymore as it used to. Euro would be a good candidate for now and the Yuan will probably be it in 20 year's time.
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Arion640
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Re: Should the global currency switch from the USD to the GBP?

Wed Feb 05, 2020 7:33 pm

No, won’t happen. It will likely be the yuan in the future.
 
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CitizenJustin
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Re: Should the global currency switch from the USD to the GBP?

Wed Feb 05, 2020 7:35 pm

Dutchy wrote:
Indeed Russia is weak, much weaker than the US even with the USD being the backup currency of the world. That said, part of the reason that the US can have such a trade deficit (e.g. the rest of the world send stuff to America for free), is because the USD is the back-up currency of the world. So much of US wealth is actually derived from it.
For the British Pound, no, Great Brittain isn't as great anymore as it used to. Euro would be a good candidate for now and the Yuan will probably be it in 20 year's time.


What are your predictions for Putin’s Russia.
 
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Dutchy
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Re: Should the global currency switch from the USD to the GBP?

Wed Feb 05, 2020 7:40 pm

CitizenJustin wrote:
Dutchy wrote:
Indeed Russia is weak, much weaker than the US even with the USD being the backup currency of the world. That said, part of the reason that the US can have such a trade deficit (e.g. the rest of the world send stuff to America for free), is because the USD is the back-up currency of the world. So much of US wealth is actually derived from it.
For the British Pound, no, Great Brittain isn't as great anymore as it used to. Euro would be a good candidate for now and the Yuan will probably be it in 20 year's time.


What are your predictions for Putin’s Russia.


That's off-topic. In general, the world will move to more democracy and freedom and autocrats will loose in the end, if Putin will make it to the end of his natural life is up for grasps, he is 65plus. But you are welcome to open another topic about it, I will sure to react, Justin
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sonicruiser
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Re: Should the global currency switch from the USD to the GBP?

Wed Feb 05, 2020 7:50 pm

Dutchy wrote:
Indeed Russia is weak, much weaker than the US even with the USD being the backup currency of the world. That said, part of the reason that the US can have such a trade deficit (e.g. the rest of the world send stuff to America for free), is because the USD is the back-up currency of the world. So much of US wealth is actually derived from it.
For the British Pound, no, Great Brittain isn't as great anymore as it used to. Euro would be a good candidate for now and the Yuan will probably be it in 20 year's time.


There is an excellent documentary from Frontline on the subject.

https://www.pbs.org/wgbh/frontline/film ... ll-street/

US sanctions only work because everyone trades the dollar by default. The country with the most powerful currency has leverage over who can access it; the USD can be weaponized politically to threaten countries to act in line with America or be cut off from the global economy. It is the same reason sanctions from Japan aren't effective, since the yen is not as ubiquitous as the USD. America wouldn't be as powerful as it is and would not be able to act unilaterally if the USD was not the global forex trading default. America's power is not derived from its military, its power is derived from the USD. To defang America, one must address this first.

Ideally the global default forex currency should belong to a country that acts peacefully and won't weaponize its currency causing instability across the world. UK or Europe would be a good option.
شما می توانید مردم را تحریم کنید ، اما نمی توانید سبک تحریم را اعمال کنید

You can sanction people, but you can't sanction style
 
alfa164
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Re: Should the global currency switch from the USD to the GBP?

Wed Feb 05, 2020 7:57 pm

johns624 wrote:
Not hardly. It was the GBP before the dollar and look where that got us. The Chinese want it to be the yuan. Would you prefer that over the USD? With Brexit, the GBP is even more irrelevant. To say that we would only be the equal of Russia without the USD is laughable.


:checkmark: That someone believes the USA derives its global clout because the dollar is the world's default currency is ludicrous - but imagine what loony Boris could do if that were the case and the pound were the option!

;)
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johns624
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Re: Should the global currency switch from the USD to the GBP?

Wed Feb 05, 2020 8:01 pm

sonicruiser wrote:
Ideally the global default forex currency should belong to a country that acts peacefully and won't weaponize its currency causing instability across the world. UK or Europe would be a good option.
Yeah, give the EU some real clout and see who really starts telling others what to do...
PS--Europe isn't a country.
PPS-If enough countries decided to use another currency for global matters, they could make it happen. Since that isn't happening, I guess that they like the status quo.
 
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einsteinboricua
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Re: Should the global currency switch from the USD to the GBP?

Wed Feb 05, 2020 8:56 pm

johns624 wrote:
PS--Europe isn't a country.

He's clearly talking about the EU which is a supranational government that essentially is integrating 27 states into a single block. The only reason it's not its own country is because every member is still a sovereign nation in her own right. But given that the EU participates (as a member or observer) in many other organizations, it's almost essentially a country.
"You haven't seen a tree until you've seen its shadow from the sky."
 
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Aesma
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Re: Should the global currency switch from the USD to the GBP?

Wed Feb 05, 2020 9:01 pm

Actually the EU is working on ways to bypass the dollar (and VISA and Mastercard).

The currency you're looking for already exists, it's called Bitcoin.
New Technology is the name we give to stuff that doesn't work yet. Douglas Adams
 
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EstherLouise
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Re: Should the global currency switch from the USD to the GBP?

Wed Feb 05, 2020 9:04 pm

I remember when a pound bought over $3. Now, a pound will buy you $1.30. Hmmm....
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Zaf
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Re: Should the global currency switch from the USD to the GBP?

Thu Feb 06, 2020 12:37 am

EstherLouise wrote:
I remember when a pound bought over $3. Now, a pound will buy you $1.30. Hmmm....

I remember a dollar was 3 Deutsche Mark, now its 1.7 only.
With 90% of consumer goods coming from China. we should use the Yuan globally.
 
zakuivcustom
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Re: Should the global currency switch from the USD to the GBP?

Thu Feb 06, 2020 1:33 am

Zaf wrote:
With 90% of consumer goods coming from China. we should use the Yuan globally.


You're still talking about the Yuan?

The Chinese Cryptocurrency is the future!

Aesma wrote:
The currency you're looking for already exists, it's called Bitcoin.


Meh...Libra FTW :duck:
 
GalaxyFlyer
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Re: Should the global currency switch from the USD to the GBP?

Thu Feb 06, 2020 3:50 am

Kwacha, the Zambian currency, let’s try that on.
 
dtw2hyd
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Re: Should the global currency switch from the USD to the GBP?

Thu Feb 06, 2020 4:51 am

Why the intermediary step, England should switch to Yuan.
All posts are just opinions.
 
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DeltaMD90
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Re: Should the global currency switch from the USD to the GBP?

Thu Feb 06, 2020 5:07 am

Probably the predictable American response, but I don't see the USD going anywhere soon.

Not to say it'll last forever. And I'm not sure if it'll be a complete swap overnight. I think there will maybe be another competing currency that may gain traction and eventually overtake the USD, sometime down the line.

I'd say it'll probably be the Euro, if anything. Yeah, maybe Yuan. I think the latter would be more regional, but I honestly have no idea what I'm talking about (hey, at least I'm honest)
 
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Francoflier
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Re: Should the global currency switch from the USD to the GBP?

Thu Feb 06, 2020 5:38 am

DeltaMD90 wrote:
Probably the predictable American response, but I don't see the USD going anywhere soon.

Not to say it'll last forever. And I'm not sure if it'll be a complete swap overnight. I think there will maybe be another competing currency that may gain traction and eventually overtake the USD, sometime down the line.

I'd say it'll probably be the Euro, if anything. Yeah, maybe Yuan. I think the latter would be more regional, but I honestly have no idea what I'm talking about (hey, at least I'm honest)


I rather agree.

There are few other currencies out there that provides the same level of stability and none that are backed by a larger economy.

The Euro is still subject to uncertainties about the future of the EU, the Yuan is essentially tightly controlled by a autocratic government in which there is little trust outside of China. Digital currencies are still way too volatile.
In the end, it all comes down to trust. Most people trust that the US economy will remain strong in the foreseeable future. The only issue seems to be the rate at which the US is amassing debt. It was bad before and made much worse under Trump. There might be a point where that debt spirals out of control and will start affecting the value and stability of the greenback, push people to seek refuge in other currencies and affect its overall preponderance.

For now though. nothing will change, and certainly not to the GBP, which has become one of the most volatile currencies of the developed Nations recently, for obvious reasons...
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blueflyer
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Re: Should the global currency switch from the USD to the GBP?

Thu Feb 06, 2020 6:32 am

China has realized that it has a long way for the yuan to gain enough respectability to challenge the dollar, especially after implementing capital controls in 2015. Instead, it is working on a new digital currency.
https://www.economist.com/briefing/2020 ... lars-reign

johns624 wrote:
If enough countries decided to use another currency for global matters, they could make it happen. Since that isn't happening, I guess that they like the status quo.

It is happening, but not overnight. Just as the dollar didn't reach its dominant position overnight.
Dollar-denominated foreign currency reserves, cross-border lending, and international debt have been in a decreasing trend as a percentage of the total for 20 years now. There are multiple reasons why the decline is so slow. First and foremost, the existing multiyear dollar denominated contracts have to expire before new contracts can be negotiated. It may take a long time to convince all parties (borrower, lender, banker, insurer, etc.) to use alternate currencies, a delay that is not helped by the virtuous circle supporting the dollar. The widespread use of the dollar helps in making the US economy more stable and less volatile compared to other economies, and this very stability encourages the use of the dollar. Finally, efforts to replace the dollar were driven so far by countries like China, India, or Russia, with much less intervention from the EU, Brazil, or Japan.

Still, of the three types of transactions above, foreign reserves are the only ones where the majority of transactions are in dollars by value.

The dollar is losing ground to a basket of currencies, the most prominent of which is the yuan, though in itself is still a very small player. The euro's share has been relatively steady over the years, however this may be about to change. The EU has been working on a plan since 2019 to reduce the use of the dollar in transactions that do not involve US firms.

Dollar payments in SWIFT are increasing as a share of the total volume on the other hand. Reportedly it is driven by countries wanting to avoid (the threat of) US sanctions and turning to SWIFT competitors where the US has little to no influence These competitors are few and often very limited in resources, so the net effect is small. China and India are supposedly leading efforts to build a better-organized competitor to SWIFT.
 
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Re: Should the global currency switch from the USD to the GBP?

Thu Feb 06, 2020 7:29 am

Francoflier wrote:
In the end, it all comes down to trust. Most people trust that the US economy will remain strong in the foreseeable future.


US dollar is buffered by the world economy. Anything done with dollars ( beyond handing back and forth banknotes )
is brokered through the US economic space. The US is owning the "money grid" for dollar transfers. Getting rich from handling charges.
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T18
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Re: Should the global currency switch from the USD to the GBP?

Thu Feb 06, 2020 11:51 am

We should just swap over to monopoly money, its back just about as well as anything else after all... ;)
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johns624
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Re: Should the global currency switch from the USD to the GBP?

Thu Feb 06, 2020 1:59 pm

This thread proves one thing. All those non-Americans who are constantly complaining about the US being the world power and how terrible it is, are hoping that they can be the power that replaces it. Just so you know, with power comes obligations, both good and bad...
 
blueflyer
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Re: Should the global currency switch from the USD to the GBP?

Thu Feb 06, 2020 2:10 pm

johns624 wrote:
This thread proves one thing. All those non-Americans who are constantly complaining about the US being the world power and how terrible it is, are hoping that they can be the power that replaces it. Just so you know, with power comes obligations, both good and bad...

I'm sure you're right when it comes to countries like Russia or China. For others like the EU, the UK, Brazil, etc, I think they'd settle either for not having to use the dollar in transactions where US firms are not involved, or for the US government to stop claiming jurisdiction over transactions with no tie to the US other than the use of the dollar. If the latter didn't happen,
 
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Re: Should the global currency switch from the USD to the GBP?

Thu Feb 06, 2020 2:33 pm

sonicruiser wrote:
Dutchy wrote:
Indeed Russia is weak, much weaker than the US even with the USD being the backup currency of the world. That said, part of the reason that the US can have such a trade deficit (e.g. the rest of the world send stuff to America for free), is because the USD is the back-up currency of the world. So much of US wealth is actually derived from it.
For the British Pound, no, Great Brittain isn't as great anymore as it used to. Euro would be a good candidate for now and the Yuan will probably be it in 20 year's time.


There is an excellent documentary from Frontline on the subject.

https://www.pbs.org/wgbh/frontline/film ... ll-street/

US sanctions only work because everyone trades the dollar by default. The country with the most powerful currency has leverage over who can access it; the USD can be weaponized politically to threaten countries to act in line with America or be cut off from the global economy. It is the same reason sanctions from Japan aren't effective, since the yen is not as ubiquitous as the USD. America wouldn't be as powerful as it is and would not be able to act unilaterally if the USD was not the global forex trading default. America's power is not derived from its military, its power is derived from the USD. To defang America, one must address this first.

Ideally the global default forex currency should belong to a country that acts peacefully and won't weaponize its currency causing instability across the world. UK or Europe would be a good option.


That is changing, my former employer was receiving far more payments in EUR than USD, accepting payment's in USD is a pain in the arse, especially when you have to report them. Most of the companies foreign customers have transitioned to EUR or will pay in NOK. This is the same in most Norwegian companies I've worked with.

The Koreans, Chinese, Japanese and Indians have almost entirely ignored the US sanctions against Russia, they aren't trading with the Russians in USD it's either in local currency or EUR.
 
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aeromoe
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Re: Should the global currency switch from the USD to the GBP?

Thu Feb 06, 2020 10:42 pm

EstherLouise wrote:
I remember when a pound bought over $3. Now, a pound will buy you $1.30. Hmmm....


In January 1985 right after I got stationed in England as my second USAF duty station, the exchange rate was moving down to very close to even money. I seem to remember $1.05. When I bought my Concorde Fan Club ride ticket in February 1985 it was $1.13. 300 pound sterling for a ride on Concorde. $339. It was a no-brainer for me to sign up for that trip. By the end of 1987 when my 3-year tour was over, the exchange was approaching $2 to the pound.

England was a great experience for me by the way.
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olle
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Re: Should the global currency switch from the USD to the GBP?

Fri Feb 07, 2020 9:49 am

We can probably soon see a mixof yuan, usd and euro.

EU as mentioned working on replacement of swift and other institutions like visa mastercard or make them use EU infrastructure for transactions.

The problem now is that euro and yuan usage is increasing wich is nice. Usd is decreasing wich creates problem, while noone want themback in USA.

If this happens in an increasing economy, USA will not get to affected. Theywill not be able to use the creditcard,but theydo notneed to pay the bill eather.

If like in case of collaps of oil in short period of time USA will see the problem. Then they will need to accept the usd as payments for products and services and pay back the creditcard by work.
 
Airstud
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Re: Should the global currency switch from the USD to the GBP?

Fri Feb 07, 2020 10:08 am

GalaxyFlyer wrote:
Kwacha, the Zambian currency, let’s try that on.


Malawi's, too! :smile:
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lightsaber
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Re: Should the global currency switch from the USD to the GBP?

Sat Feb 08, 2020 3:45 pm

For a currency to replace the USD, it must have a huge scale. Only the Yuan, Euro, and Bitcoin can be considered. Sorry, but the economy behind most currencies, including the GDP, is too small for trillions of dollars per day in transactions.

It must be freely tradable among the majority of the world, free floating, and tradable on multiple markets. This knocks out the Yuan.

The new currency must be desirable as a safe haven. That makes Bitcoin tough with its huge fluctuations.

The currency must be readily convertible in milliseconds. I saw anti-Visa, MasterCard above. Ok, but they process what fraction of global commerce?

Trade occurs in other currencies. If the US imposses too many restrictions, the world will switch.

If no currency is good enough, we revert back to gold.

Just as the GBP never went away, nor will the USD. It might fade (as it is).

But the next currency must be widely tradable and have equal or lesser volatility than the dollar.

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johns624
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Re: Should the global currency switch from the USD to the GBP?

Sat Feb 08, 2020 4:26 pm

Here's a down-to-earth answer--if you were in a high risk situation in a 3rd world country, which currency would you want to have to get yourself out of there? I'd take the USD first, then the GBP and I really don't have a third choice.
 
anrec80
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Re: Should the global currency switch from the USD to the GBP?

Sat Feb 08, 2020 8:24 pm

Dutchy wrote:
Indeed Russia is weak, much weaker than the US even with the USD being the backup currency of the world. That said, part of the reason that the US can have such a trade deficit (e.g. the rest of the world send stuff to America for free), is because the USD is the back-up currency of the world. So much of US wealth is actually derived from it.
For the British Pound, no, Great Brittain isn't as great anymore as it used to. Euro would be a good candidate for now and the Yuan will probably be it in 20 year's time.


Today EUR isn’t a good candidate since Eurozone doesn’t have a developed financial services industry, similar to that in London and New York. You need capital markets with ample of liquidity, insurance services, investment banking, stock exchanges and many other things EU lacks. EU, despite all its desire, can’t even establish meaningful trade with Iran, and hence failed its first test for ability of EUR to be a global currency. RUB is, frankly, ahead in this game since they have a sovereign financial system, albeit limited.
 
anrec80
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Re: Should the global currency switch from the USD to the GBP?

Sat Feb 08, 2020 8:28 pm

DeltaMD90 wrote:
Probably the predictable American response, but I don't see the USD going anywhere soon.

Not to say it'll last forever. And I'm not sure if it'll be a complete swap overnight. I think there will maybe be another competing currency that may gain traction and eventually overtake the USD, sometime down the line.

I'd say it'll probably be the Euro, if anything. Yeah, maybe Yuan. I think the latter would be more regional, but I honestly have no idea what I'm talking about (hey, at least I'm honest)


The most recent trend is to do international trade in national currencies directly. Hence, even if there will be a global currency in place, its weight and meaning will be less than those of USD now.
 
olle
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Re: Should the global currency switch from the USD to the GBP?

Mon Feb 10, 2020 6:53 am

anrec80 wrote:
Dutchy wrote:
Indeed Russia is weak, much weaker than the US even with the USD being the backup currency of the world. That said, part of the reason that the US can have such a trade deficit (e.g. the rest of the world send stuff to America for free), is because the USD is the back-up currency of the world. So much of US wealth is actually derived from it.
For the British Pound, no, Great Brittain isn't as great anymore as it used to. Euro would be a good candidate for now and the Yuan will probably be it in 20 year's time.


Today EUR isn’t a good candidate since Eurozone doesn’t have a developed financial services industry, similar to that in London and New York. You need capital markets with ample of liquidity, insurance services, investment banking, stock exchanges and many other things EU lacks. EU, despite all its desire, can’t even establish meaningful trade with Iran, and hence failed its first test for ability of EUR to be a global currency. RUB is, frankly, ahead in this game since they have a sovereign financial system, albeit limited.



But still it is fast growing and with Trump created political risk I can see this speed up a bit.


EU is not stupid. They will let London survive as long as equal functionality and services does not exist in Paris or Frankfurt. It took Tatcher 10 years to create London as alternative to New york and can see Macron plan to do something similar right now.
 
anrec80
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Re: Should the global currency switch from the USD to the GBP?

Mon Feb 10, 2020 5:46 pm

olle wrote:

But still it is fast growing and with Trump created political risk I can see this speed up a bit.

EU is not stupid. They will let London survive as long as equal functionality and services does not exist in Paris or Frankfurt. It took Tatcher 10 years to create London as alternative to New york and can see Macron plan to do something similar right now.


You know my general problem with the EU - even if something does happen there, it will require immense amount and many years of beautiful and tough talks, resolutions, countries joining, etc. So far, even on the simplest and most basic things of economic sovereignty - INSTEX with Iran - it’s been 1.5 years, and not even a single transaction. In comparison, Russia designed and launched their internal payment mechanisms (Mir) in about a year, if not less. So I’d like to see EU delivering more results in shorter time.
 
Dieuwer
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Re: Should the global currency switch from the USD to the GBP?

Mon Feb 10, 2020 6:23 pm

For the Euro to be a real global reserve currency, a viable Eurobond market needs to be created. And the idiotic negative interest rate policy of the ECB terminated.
In order to do this, I suggest that the Eurozone operating budget be funded with a flat 5% income tax rate on all EU citizens. EU infrastructure projects should be funded by emitting EU bonds which the ECB will place in the global market.
 
Sokes
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Re: Should the global currency switch from the USD to the GBP?

Mon Feb 10, 2020 6:54 pm

If the OP wasn't so serious, I would assume it to be a joke. How can the British Pound take the role of the Dollar?
I would rally like to see Keynes's "bancor" tried. But then if the $ isn't reserve currency any more the US would not be willing to provide security to it's allies any longer. Somehow the military has to be financed. US gov debt is ridiculous. But then the US has the reserve currency. I therefore prefer everything stays as it is.
Unless you live in Iran, why would you like it to change?
Why can't the world be a little bit more autistic?
 
anrec80
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Re: Should the global currency switch from the USD to the GBP?

Mon Feb 10, 2020 8:59 pm

Sokes wrote:
But then if the $ isn't reserve currency any more the US would not be willing to provide security to it's allies any longer. Somehow the military has to be financed. US gov debt is ridiculous. But then the US has the reserve currency. I therefore prefer everything stays as it is.
Unless you live in Iran, why would you like it to change?


Because this is simply not sustainable, and has to change at some point. And US allies are mostly wealthy nations and can afford their own defense. They just need to want to. Why the US taxpayers should fund that?

And for the US and American taxpayers - it’s time to pay attention at the fiscal side of their own house.
 
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Dutchy
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Re: Should the global currency switch from the USD to the GBP?

Mon Feb 10, 2020 9:35 pm

anrec80 wrote:
olle wrote:

But still it is fast growing and with Trump created political risk I can see this speed up a bit.

EU is not stupid. They will let London survive as long as equal functionality and services does not exist in Paris or Frankfurt. It took Tatcher 10 years to create London as alternative to New york and can see Macron plan to do something similar right now.


You know my general problem with the EU - even if something does happen there, it will require immense amount and many years of beautiful and tough talks, resolutions, countries joining, etc. So far, even on the simplest and most basic things of economic sovereignty - INSTEX with Iran - it’s been 1.5 years, and not even a single transaction. In comparison, Russia designed and launched their internal payment mechanisms (Mir) in about a year, if not less. So I’d like to see EU delivering more results in shorter time.



yeah yeah, the Putin regime is perfect, right?

You know what my general problem is with the Putin regime, they are in it for themselves and don't care about the Russian population or the damage, they cause in other countries. The troll army is still out there, right.
Russia is of no importance in the world. None. Fine, they have their own financial thingy, who cares, nobody uses it.
Many happy landings, greetings from The Netherlands!
 
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Dutchy
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Re: Should the global currency switch from the USD to the GBP?

Mon Feb 10, 2020 9:38 pm

anrec80 wrote:
Sokes wrote:
But then if the $ isn't reserve currency any more the US would not be willing to provide security to it's allies any longer. Somehow the military has to be financed. US gov debt is ridiculous. But then the US has the reserve currency. I therefore prefer everything stays as it is.
Unless you live in Iran, why would you like it to change?


Because this is simply not sustainable, and has to change at some point. And US allies are mostly wealthy nations and can afford their own defense. They just need to want to. Why the US taxpayers should fund that?

And for the US and American taxpayers - it’s time to pay attention at the fiscal side of their own house.


We do not need advice from a Russian. You can play all the sentiments you want, it doesn't hold any truth to it.

The US has a defence budget which is larger than the next x countries, most of them are in NATO. Same for those European countries, there is no real threat, or it should come from the Putin troll army.
Many happy landings, greetings from The Netherlands!
 
anrec80
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Re: Should the global currency switch from the USD to the GBP?

Tue Feb 11, 2020 12:14 am

Dutchy wrote:


yeah yeah, the Putin regime is perfect, right?

You know what my general problem is with the Putin regime, they are in it for themselves and don't care about the Russian population or the damage, they cause in other countries. The troll army is still out there, right.
Russia is of no importance in the world. None. Fine, they have their own financial thingy, who cares, nobody uses it.


Russia is having its financial infrastructure due to the need to maintain its sovereignty, plain and simple. It’s secondary for them whether or not there will be foreign users.

You should worry about EU and Netherlands. Today, all it takes is a few entries into an unrelated to US law, or even some official in Washington in a junky mood, and the next day you have no economy and learn how military communism and card system for distributing bread and milk work. Russia will be fine in such scenario. You will not be.
 
anrec80
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Re: Should the global currency switch from the USD to the GBP?

Tue Feb 11, 2020 12:20 am

Dutchy wrote:

We do not need advice from a Russian. You can play all the sentiments you want, it doesn't hold any truth to it.


Who are “we” in this context?

Dutchy wrote:
The US has a defence budget which is larger than the next x countries, most of them are in NATO. Same for those European countries, there is no real threat, or it should come from the Putin troll army.


True - but it’s also true that the US has a trillion dollar deficit (which cannot last), and also many more issues with education access, healthcare, poverty to tackle. Hence NATO allies should think about their own defense more, and spend less time counting American defense budget.
 
Sokes
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Re: Should the global currency switch from the USD to the GBP?

Tue Feb 11, 2020 4:53 am

anrec80 wrote:
... And US allies are mostly wealthy nations and can afford their own defense. They just need to want to. Why the US taxpayers should fund that?

And for the US and American taxpayers - it’s time to pay attention at the fiscal side of their own house.


How much foreign debt does the US government have?
I meant to say the world accepts the $ as reserve currency as it enjoys protection.
I didn't mean to mock Iran, Irak, Libya and Syria. I refer to the rest.
Up till recently China focused on development. Were they 20 years back at risk of getting attacked by Japan?
China just like Germany did well to rely on the safety the US hegemony provides for the world. Why change something?

A country can afford it's own defense?
Well, mathematically speaking it's 50% chance of defense and 50% chance of attack. The world is better off with a hegemon.
But I would agree that countries who enjoy America's protection contribute 1 or 2% of GDP to the cost of maintaining the military. Similar to the subsidiary alliance Indian Princes had with the (British) Indian government.
What would Trump say if Xi Jinping offers 1,5% of GDP to the US in exchange for protection? Or maybe they already do by saving in $?
Why can't the world be a little bit more autistic?
 
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Re: Should the global currency switch from the USD to the GBP?

Tue Feb 11, 2020 10:28 am

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