Comments by "David Lazarus" (@davidlazarus67) on "Yellen; BRICS currency, no problem. Plan B, hit Kerch. Erdogan calls Biden. Elensky mocks Trump. U/1" video.

  1. Most international transactions are between financial institutions trading currencies and derivatives. There are hundreds of trillions of dollars daily in currency trades alone, as they arbitrage prices between London and New York. Remember the value of the derivatives are hundreds of times the size of the real economy, so even every one abandoned the dollar the financial transactions alone would still mean the dollar is the dominant currency even if 85% of the world has stopped using it completely.
    10
  2.  @lowersaxon  The risks of derivatives are staggering and quietly behind the scenes after the failure of AIG that they changed the creditor priorities. Depositors dropped below the holders of derivatives making bank runs inevitable. Yes the dollar may remain a reserve currency but not the only one. It might become irrelevant for actual trade for all except the USA.
    1