Apparently upset by his arrest, Donald Trump attacked Joe Biden by saying that the dollar was over.
Trump realizes
Speaking to supporters and the media from Mar-a-Lago, his Florida residence, the former US president said:
“Our currency is collapsing and will soon no longer be the world standard. This will be our greatest defeat in 200 years. We will cease to be a great power. »
This admission of powerlessness comes days after Brazil decided to trade with China in their own currencies. And without going through the SWIFT network, but the network CIPS (Cross-Border Interbank Payment System).
CIPS already shows more than 28,000 daily transactions representing more than 445 billion yuan ($64 billion). In March, CIPS had 1,427 participants, including 872 from outside mainland China, covering 109 countries and regions around the world.
For comparison, the SWIFT network connects more than 11,000 participants in more than 200 countries and regions. Its message system validates approximately 9 million transactions per day.
Saudi Arabia will now also trade in yuan with China. Russia has been doing this for quite some time. Volumes on the CNY/RUB (yuan/rouble) pair have just surpassed those of the USD/RUB pair.
ASEAN countries are also discussing stopping trading in dollars and switching to their own currencies. The President of Malaysia launched on Monday that his country has no reason to continue to depend on the dollar, even proposing the creation of an “Asian IMF”.
From dollar to bitcoin
The dollar is not the international currency by chance. This is a privilege inherited from the Second World War. A world standard time thanks to its convertibility into gold, the dollar was able to maintain its rank by changing into the petrodollar after the oil shocks of the 1970s.
The expression petrodollar simply means that oil is sold in dollars and no other currency. Black gold being essential to any modern economy, the whole world is obliged to accumulate dollars to buy it.
Along the way, it is today 6,470 billion dollars that the central banks of the whole world hold in reserve. According to recent IMF figures, the greenback represented 58% foreign exchange reserves at the end of last year.
If the dollar ceases to be indispensable in international trade, central banks will diversify their reserves. And since central banks keep their reserves in the form of US Treasuries (to earn interest), the demand for US debt will decrease accordingly.
This will ultimately result in a drop in the dollar exchange rate and in inflation. Washington will then no longer be able to enjoy the privilege of having a chronically negative trade balance without consequence.
The formalization of the end of the dollar as the world standard by Donald Trump means that the world will have to find a new reserve currency.
The yuan? What is the point of getting rid of the American parasite to engage in communist China, a country of social credit and whose markets remain closed for the time being? Even the Middle Kingdom itself does not believe in it since it accumulates gold.
But soon, the world will realize that the yellow metal will not oil global exchanges and will turn to Bitcoin. In fair competition, Bitcoin wins. No fiat ponzi does the trick as a store of value.
The United States would do well to think about it, they who are now home to more than 40% of the hashrate…
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