Dollar dominance: What's next for the greenback? | Counting the Cost
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- Опубліковано 29 вер 2024
- The United States dollar is stronger now than it has been for 20 years.
That is because of the Federal Reserve.
When the Central Bank raises interest rates, it makes the greenback more appealing to investors around the globe.
But the global economy is teetering on a cliff edge. And as fears mount of a worldwide recession, dollars are seen as a safe place to hold your money.
On Counting the Cost, we ask: How have rising rates and a strong dollar negatively affected gold’s performance? Can crypto still be considered a hedge against inflation? And can it bring back investors after the FTX Collapse?
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It's better use the Chinese Yuan or the Russian Rubles to invest, trade, and do business because if we use the US dollars or Euros to do business, we will very well be sanctioned in the future if we don't follow the west, mainly america's instructions in foreign affairs..... That's why other countries are moving away from the dollar/euro......
This is the fact......
What will happen when you dont follow the CCP then or just say one of their leaders looks kinda like Winnie the Pooh?
Who exactly is moving away??
@@jkardez4794
The world...... But don't worry, this is what bullies get..... You know why the world thinks the US and EURO is a bully? Cause when ever the west instruct another country to do something, and that country chooses not to do for their own countries benefits, the west usually will come up with a sanction package..... This is what the west had been doing... So it's best for other countries move from dollar, course the west only can sanction if other countries are using dollars for global affairs/trade and so on.... Sanction are created for something else but are used as a tool to bully others...
@@ssudareson Better to be sanctioned rather than be invaded and subject to genocide and border problems like Ukraine, Vietnam, India, Japan, Taiwan, Philippines, Mongolia, Belarus etc. What makes you think these Commies are any better. China has bankrupted any number of African countries in the name of progress.
The old-fashioned greenback or the greenbuck? It will become worthless or second to RMB.
I've just one question about us currency how its possible to buy various tangible products by the fake currency. It has power to buy different physical products by the dollar. USA don't need to exange rate because they have dollar. It is totally unfair that they buy anythings from anywhere by the fake doller and very cheap cost.
You have it a little backwards. The dollar has value ONLY because it is backed by the GDP of the US. The US produces more goods, products, and services than any other country (even China) by a pretty wide margin. If you combine the EU and the collective "West" you have 15% of the worlds population that produce nearly 70% of the worlds goods.
That is why the "US printing money" works, but it always has to be grounded against GDP. That is why the dollar became the de facto currency- you can buy anything with it and the US pursues policies to reliably defend the dollar.
Contrast that to dictators in Africa and South America who literally tried to just "print money" with no GDP backing it. Those currencies rapidly had inflation rates over 10000% because you can't buy anything inside their own countries with them. For stability, people in those countries turned to using the dollar.
*Anything* could be used as the standard. You could use gold. You could use Apples. Every currency would be gauged against that. So if we made Apples the standard, and I could get 10 Apples for 1 lira or 10 Apples for 100 rubles or 10 Apples for 1000 dollars. In that example Apples would be the unit of trade and the exchange rates would be 1000 dollars is worth 100 rubles which is worth 1 lira. (Not a very realistic example with the lira and ruble worth so much, but didn't want to offend).
The world could choose to use the ruble as the world reserve currency, but does not because it is not backed by meaningful GDP. If you held a ton of rubles in reserve you could not be guaranteed to buy much with them outside of oil. Russia simply doesn't produce any goods the outside world buys. So you would then have to convert rubles to dollars first (or a currency that has the goods you want) so the dollar just becomes universally the easiest to use.
The Chinese Yuan could also be a good contender since they produce quite a bit. The challenge is China doesn't really want that, they traditionally artificially manipulate their currencies value to get favorable trade conditions. They could no longer do that if they became the reserve standard and as a country that insists on massive trade deficits with every country they do business with, it would be a disaster for them (if your country does trade with China, it is almost guaranteed you buy more from them than they buy from you).
So everyone barking about what currencies people should use are kind of barking up the wrong tree, the only thing that upholds a currencies value is GDP divided by the number of shares outstanding.
@@froodtube check GDP adjusted for PPP ...
@@froodtube I'm so glad to know about exact fact. Really appreciate brother.
@@froodtube but in Bangladesh we have to pay 100 taka for two kg rice. But by the dollar it just 1 doller.? Why its happening.?
@@shaharearhossain4280 Very basic example but suppose rice was the only good produced in the world and Bangladesh produced 1 million kg of rice per year and the US also produced 1 million kg or rice per year. Their economies are the exact same size.
If Bangladesh printed 100,000 taka and the US only printed 1,000 dollars and everyone wanted to buy rice then you could buy the same amount of rice for 100 taka as you could for 1 dollar. Since they have the same amount of GDP but the US prints less currency, each dollar has more goods backing it.
The real thing that matters is GDP. Nobody actually wants the colored pieces of paper themselves, they want what they can get with them.
Now if they started trading with each other things get interesting. Suppose Bangladesh rulers want to buy more US rice and say "hey, this is easy, we can just print more taka and buy the US rice with that" As they print more taka, without increasing their economy size, the taka starts losing its value and it starts requiring more taka to buy the same amount of rice as before. If the dollar kept being printed at its prior rate the dollar would now become stronger vs the taka. One effect of this would be people see that now each dollar buys even more rice, and now people in the US would start buying more rice from Bangladesh because they are getting a good deal.
If the Bangladesh government then printed more money to try and buy more rice things could get out of hand.
This is what happened in Africa and South America where leaders just printed currency to buy things for themselves without improving their countries GDP. It got so bad even people in those countries realized their currency is worthless and started using the dollar instead of their own currency.
China does this to a limited extent because they want their currency to have lower value so people buy lots of goods from China. The key to China is they do it in moderation and have a lot of GDP backing their currency.
All the people worrying about whose currency is going to be used where have it all wrong. It is all about GDP so focus on growing that and your country is doing alright 👍
Why are you telling a lie about the Dollar?
it's the truth.
I think that the dollar will be fine
@@ds-kj8fq it's not a lie the dollar just had it's best year in decades.
If China is the 2nd Biggest Economy , Why isn't the Yuan 2nd in Valuation ?
Something is not adding Up.
You also have to consider the shares outstanding (ie the net sum of how many bills they've printed). China overprints to keep its currency values artificially low so other countries perceive they are getting better trade value with China.
In order to pull that off they need almost constant growth (which lowering its value further helps) but it almost like a ponzi scheme. Eventually their growth slows and then they get a hangover of epic proportions.
Strong dollar clear and sure sign of another financial crisis
Woah - savers can actually finally get interest on their hard earned savings? What a difference from rich layabouts stealing money for nothing since 2009.
So you guys even know dollar is dominating too much and needs to be be stop
It's your own fault that your own country is corrupt.
USA sold gold reserve and invested in stock market in 1970's. Since US economy became strong so the dollar. Countries around the world started holding dollar as reserve currency. US control value of dollar by controlling inflation which is 2 percent historically. CCP don't allow Chinese currency RMB to go down more than 2 percent according to exchange rate and artificially holding value high. Britain China Japan etc all invested trillions in US Treasury bonds despite having their own reserve currency because of security and stability. CCP monetary policy and political system is not transparent like USA.
Whoever is betting on RMB is living in oblivion! China has a serious trust issue, I think more like a cryptocurrency situation. You don't know what China will do tomorrow. On the other side, USD is in the market for last century through thick and thin.
The USD$ will have same fate as the British Pound £; when it backs by nothing and delusion game ends. Everything has the beginning and the end; period.
Wow wow good brother and sister TNX GOOD Family First good business ok thanks good
japan will retaek the kurils sakhalin and vladivsotok south korea will take noeth korea.
So this interview is supposed to restore our faith in the dollar? Lol
It looks more like a segment of advertisement than an analysis. I'm also not convinced
The dollar will still remain a dominant international currency but will gradually diminish with time. This is because the dollar continues to be weaponised and rational risk behaviour will force countries to avoid putting all their eggs in the dollar basket as it can get confiscated.
Also they forgot to mention the increasing trend of bilateral trade in local currencies. The US sees trade in local as a threat to the dollar and even warned Turkey against doing that with Russia.
Also though the western financial system remains dorminant countries are aggressively pursuing alternative financial systems to bypass the western controlled system.
Advances in technology means countries have choices apart from US products, and this can affect the demand for the dollor.
So the dollar's dominance will diminish over time as has already started, but it would very gradual.
What would finally happen is that the US would threaten countries with sanctions if they use any other currency aside the dollar, Euro and Pound Sterlings.
The only thing holding the dollar in it's place is the US's ability to bully other nations. When the war expands in Europe the dollar will fall rapidly. Use it while it still has value, it's days are numbered.
This gentleman is speaking of the dollar as though it was created by God Almighty. What currency did the world trade with prior to 1492? Or did world trade just start 5 centuries ago? There was a time when the British pound was the world reserve currency, but that currency is no longer the case.
The gold market is easily manipulated through the selling or buying "Non - physical" gold.
You mean futures contracts. Yes, but that’s also how everything that is “financialized” is also manipulated. Gold is no different from everything else. Financialized assets can also sometimes get away to the upside as well due to short squeezes, too, just look at what happened to nickel in London.
The US dollar is losing dominance in the global trading ,it is because of the wrong policy being pursued by the US .
Because they use it as a weapon
the dollar is stronger than ever tho?
@@ds-kj8fq what countries? lol
Not going happen Abu, do you want to know why? Because you, the Indians, Persians, the Chinese, the Russians you all believe that you destined to "Rule the World". And none of you are willing to help others you are to selfish. That why it not going happen. Even now China will sabotaging anyone trying use their currency as a trade currency.
@@daxtynminn3415 Just because the US raised the interst rate. High interest rate can have devastating effect on the US economy as well as the US government has to pay higher interest rate on their Debt.
When the EU imposes sanctions on French cosmetics, the Russians use locally produced cosmetics that cost 1% of the price of equivalent French products. So, on paper, GNP will fall 2-3 percent this year. But it makes for a healthier economy.
Russia can't even make air conditioning for their cars and tanks. Yea, Russia is not an industrial power.
Wait Eu impose sanction on french cosmétic ?!
@@aghileshemdani3144 French cosmetik clost to 100 Euro, same Russian Cosmetik 1 Euro, so when EU blokkes sale of EU produkts, and the are replaced with cheeper Local Russian produkts. As GNP is messured on price, GNP will fal 2-3% in russia, bout Rusia eksport 130 bilion more than the import, so no colaps in russia.
@@aghileshemdani3144 -Jess, Russians forced to Use Russian Cosmetiks.
This is misleading us.the dollar is going down
no the dollar is still king.
The guy from Brussels is living in some form of coco land, wonder he was the DG of ECB. He is not up to date with the current and fast growing world situation. But anyway euro is other side of the mirror that's why he is defending both. Now tell me about the what liquidity are they offering against thier value?
In order to hedge against Dollar Dominance, the trade agreement between China & Russia decided to use EURO Dollar as the denominator. It seems to me that EU does not know how to take advantage of that, don't they?
You think they are independent? They are just the lapdog of the US
@John Matter of time.
The symptom of a collapsing reserved currencies, base on historical record are always the same. Its started slowly, gradually, almost unnoticed and then, suddenly over night, it just collapse very, very drastically. . . This is exactly what is happening to USD now ...
Let's hope.
what ever you try to drum up about dollars is not going to work, other leading economies are dumping the dollar, end result if you don't use something the value drops
This guy is a joke. Euro loss against the dollar by 22% fir past 10 years. YOU SAVE 1 MILLION FOR A RETIRMENT IS NOW WORTH $780,000.
What nonsense are they talking about, USD is strong because of the their central bank? USD is strong because of petrodollars system, without it USD will fall sharply, but they continue to mention everything else except the most important factor for their dominance? I'd like to see how strong the dollar is if oil isn't sold only using USD.
How does one trade currency with no commodities to trade?
This interview is just for restoring faith on the dollar
Countries have lost faith on the dollar and are looking for alternatives.The US is massing with the global economy,they just print the dollar (because they enjoy that monopoly of dollar printing and privilege of global reserve currency)and export inflation to other countries in exchange of imports
Its ok. When USD eventually get too strong and US economy eventually suffer in coming years, just start accusing Asian countries of manipulating currencies by artificially keeping their currency low to gain trade advantage.
Will have to share global finance with the yuan for certainty.
the Yuan is a joke.
@@daxtynminn3415 yuan backed by gold and the massive Chinese economy
So the dollar backed by nothing but trust and is Good?
Do you know the amount of dollars floating outside the US?
Just a hint of distrust will see the flood of no return
Oil will be sold in yuan too now and countries now do not have to stock dollars and if China only accept yuan as payments with every country like Russia accepts rouble,then you see the total collapse of the dollar by head mentality
So it's best to diversify
Dollar is dependent on China now and China is still supporting the dollar backed by nothing and can disappear if it got sanctioned like Russia
Biden is killing the collar himself
Some one called the Currency of the only country now can go toes to toes competing against the current uni-super power country in almost all areas of endeavours and winning quite regularly, the Currency, RMB just a joke?
I wish those on the highest us governing echelons would have 10% of your telant and tenacity - they wouldn't have been so desperate to find the effective schemes for suppressing and stopping China's progresses or at least slowing down their paces of chasing up too fast to avoid being bitten off the tails !
But the worst yet to come is in reality this biggest human beings multi-generational endeavours expanded over hundreds of years long terms racing games for glories by all have been all for the wrong reasons !
I'd love very much this time will be completely different as China and the Chinese are insights into the racing scenes. Our government and the citizens' envisioned the Shared common Prosperity of the human society as a whole will be possible soon!
This all around race for the uttermost prowesses champions should be for propelling the faster advancements of most urgent tasks of our time - getting all the earthlings' free from hungers; kids all sitting in well-setup classrooms; peoples are living in safe & peacefully in healthy atmospheres and everyone is very conscious of being self disciplined to behave responsibly within the clearly set boundaries in order for protecting and preserving the integrity of our environments and keeping the marble blue earth as beautiful as ever for the numerous generations of future earthlings to come !
Sorry for the daydreaming above !
In This game the scenarios of roll reversal is very possible to occur! The chased has turned out to become the Chaser ! The bullies' arrogant and being brainwashed to look down on the Chinese. There were nothing about China worth of their attention and thus they believe that they are the righteous ones and the whole world would have followed their lead to defeat any countries whenever they think needed.
When the Chinese going forward bypassed the Mighty Imperialist Empires, the y could be left behind chasing The Chinese tail for the rest hundreds of years !
Who will be the JOKE, you talked about?
@@daxtynminn3415 us is joke 😁
@@mike4393 the dollar is still king.
DOLLAR IS COVERED BY NOTHING....maybe us military
Russian Ruble has doubled in value while all other currencies have gone down
Change is coming. Dollar dominance is done for. It took 40 years to depose the pound as main currency. Commodities is king
Your delusional the dollar just had it's best year in decades. Crypto has blown up and all other assets like gold have fallen compared to the dollar.
@@daxtynminn3415 yeah .. that happens when USA aggressively increase bp rates ... don't worry ..that you are commenting on others comments ...to prove dollar is great.. but actually dollar will start falling from 3 rd quarter of 2023 ..by 2024 it will loose even more .. if Russia asks gold for purchasing oil in place of dollar ...and if suadi arabia does the same... then its all over
@@gopichalapathi1223 You are living in dream world. Russia can't do anything because it's a loser. Even the Chinese know this. Saudi Arabia can talk all they want but they won't do anything. They are a US colony and they know it.
@@daxtynminn3415 Shhhhh. All Putin supporters, spend your life savings in gold and Crypto. The dollar is doomed!!!! 😂😂🤣🤣
@@gopichalapathi1223 the poor English in this sentence hurts my brain and the unsubstantiated idiocy of ideas presented here also just seems like wishful thinking.
No mention of the state of 'petro-dollars'?
The guy in Brussels thinks in box. 🙂
They are idiots
The Chinese economy/finicial sector is largely dollarised as they are benefitting from the eurodollar boom and don't see any need to de dollarise.( even the loans they give out is dominated in dollars not RMB )..this applies to most middle income countries......BUT the Russian/ Ukraine war amongst other geo political and economic factors appears to have changed everything.....if true 2022 in future may be marked as a turning point
Yes. Russia Ukraine war divided the world into the West vs the Rest. The US sanctions led to the de-dollarisation.
@@texassecession6422 it didn't load to it, it excelerated it
These past few days of ECONOMIC INSTABILITY, INFLATION and RECESSION watching my portfolio decline is very disheartening. Holding doesn't really profit much. Any idea on how to earn better in the market?
Crypto trading is quite profitable I'll always pick Short term trading over Holding cause I have made a lot of profit from trading different profitable coin.. it is also surprising as I also trade with Ms Selena Mason on a short term basis.....I advice you seek the help of an expert to avoid the trauma of too much losses
Sell the dollar or dollar denominated stocks. You will thank me down the road.
👎she's on tel gram
Traderselena22
👆 That's her user-name to search for
Hello 👋
Gold is true money 💰
USD currency 💵 excellent currency exchange hold
We should invest in the world 🌍, specially 3rd world 🌍
Real estate properties
Gold Bars
USD currency 💲 Stacking
Agricultural lands
John 1:9-13 (KJV 1900): That was the true Light, which lighteth every man that cometh into the world. 10 He was in the world, and the world was made by him, and the world knew him not. 11 He came unto his own, and his own received him not. 12 But as many as received him, to them gave he power to become the sons of God, even to them that believe on his name: 13 Which were born, not of blood, nor of the will of the flesh, nor of the will of man, but of God.
The US dollar won't go anywhere anytime soon. But in Chinese, there is a saying: "Die with a thousand cuts."
Analysts like this one often ignore the simplest explanation for the dollar’s continuing dominance: inertia. People are used to the idea that it’s a safe place to store savings and the prophecy is self-fulfilling. Until it isn’t anymore. If not managed carefully the loss of value could happen very quickly.
The Dollar or any other currency doesn't really have any value, it's just a piece of paper called IOU it is supposed to be backed by something of value that everyone agrees to accept or need, but it's not the case here, the US is abusing their privilege buy printing so much and getting real good in exchange with this piece of paper.
The Financial Market strength is based on Financial Instruments which are complex in nature but practically not worth
People from the religion of peace, Africans, Chinese and Indians can keep praying for extermination of thr dollars but sadly the dollar will keep dominating. Very sad for you all
That would be very good if the green box stay strong
Don't touch the USD with a 40 foot pole !
Well my friend I understand what you're saying, but it seems as if they already touch it. How did we get to this stage.
A very real future comes
Bring back the gold money
When was this interview held 2019 ?
I made my first million this year and still doubled it this same year with the help of a caring and understanding woman, down to earth and ready to help anyone to the next level of life, I'm grateful to meet a woman with a heart like hers.
This is good news and good energy, I love it.
Please how was she able to double your money and also share how I can reach her ? I could use her help
@@carendemoya5429 Through stock investment. She is known as "Annette Michelle Walters" , look her up on the internet.
@@aarushisanah5811 Thanks I can see her profile here on web, sent her a well articulated mail I hope she can find space in her schedule to help me.
@@aarushisanah5811 I love Annette, I was in a conference in Connecticut where she spoke to the people, very sound human being, there is always this charm with smart, calm and ambitions women.
The recent debacles in crypto (Celcius, ftx) will be beneficial to the decentralized eco systems. Once investors have access to the audited p.o.reserves and liabilities, it will no doubt bring confidence back to the space. The industry lacks the auditing prowess and companies to get this info onchain. Once this has been achieved the space can remain "trustless" without any counter party risk and smart contracts can be done through the governance of decentralized autonomous organizations (dao's).
In terms of security, proof of work remains the fortknox hence why Bitcoin has never been hacked (too dispersed globally by the miners). Kadena (kda) might be the answer as its code is self auditing. It is in the early stages of building an eco system to (potentially) an infinite scale.
The strength of the dollar is related to the eurodollar which is mostly denominated in dollars......since the last finicial crises in 07 the eurodollar machine has mostly slowed and hence less euro dollar is created compared to say 30 - 40yrs ago.....resulting in shortage and DXY elevation
Petrorouble
It is difficult, but not impossible.
it's not even likely. There is nothing ready to replace the dollar.
Going digital will stabilize the dollar even more making it even more powerful
is it really the US dominating? or the world getting weaker?
Buy gold to get ready for the Collapse of the fiat currencies
It is not accurate to lump Bitcoin (BTC) with other cryptocurrencies. Eventually, more people will understand.
You failed to mention the various use cases for cryptos leaving people with no better understanding of any underlying value. Not very informative sad to say.
Great financial show guys
If Ever there was a Time to Weaponize the Dollar, Now is the Time.
Funny, many banks are buying gold.
funny because the dollar just had it's best year in decades. lmao
@@daxtynminn3415 what goes up will come down. 🥳
@@ronaldphoong Sure, keep dreaming.
@@daxtynminn3415 on 22Dec22, Saudi Arabia agreed to trade crude oil in other currency,I.e in yuan. I think the uptrend momentum of USD will lose steam gradually. Gold exchange will be dominantly used by more countries. I foresee trade deficit to continue in US due to higher USD and stagflation to run for 2023. Many companies will carry out retrenchment if products are sold at higher USD. Feds hike of opr is killing the USD. As for US inflation, it's no secret that over printing of USD is the underlying cause. With 31.4 trillion, US debt clock continues to increase and the Biden administration is asking for another 1.8 trillion, I sense the turning point is taking place for the USD.
@@ronaldphoong completely true... they can't increase the ceiling for debt that USA already has.. but they have no choice ..so they will.. I think 2023 gold and silver will skyrocket ...but we can see that they are already on their way to skyrocket its value ..I think by 3rd quarter of 2023 the dollar will see its fall sailing its way down continuing till 2024 I guess
I kept hearing Crypto will replace the dollar or the Yuan but still nothing is better than good ole American green backs.
Backed by nothing it won't be long as the world find there are less and less things you can buy with it.
The last straw will be once china refuse to accept the dollar as thete are too much dollars around plus it seems it can be lost with a pen
This guest speaker lack foresight
Gold is the best
@@joshuatree2944 backed by nothing but trust which is going downhill till China says no more dollar accepted then what can you buy with the dollar when Russia and mosdt of the world simply do not trust it.
It's the most risky assets than can vanish on the whims and fancy of an old man
Bitcoin will revolutionise the financial industry. Believe me! 💪
Freedom is the strength of the dollar and freedom is the weakness of the dollar
Dont worry Brics money is only less than 2% of world trade
Roll of toilet paper. Time to flash it down!!!!
It's going to be a very slow process.
Great job. Thanks.
Weakness of the € has caused the rise of the $.
Too soon to get conclusions.
wow
US EU UK Canada Australia should all make one currency to have stability in the world
Ha! Ha! Ha! These countries are less than 18 % of world population and their GDP in 5 years will be smaller by far than the rest of the world.
Sure like the euro , one can see what a success that's been.
FTX fu - ed crypto.
Top notch questions from host Rob and perfectly selected guests have ratcheted up the level of informative analysis in CTC by several notches. Well done to all involved.
No more paper dollar