Comments by "Happy Melon" (@happymelon7129) on "World Affairs In Context"
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2024-5-20, ASEAN bloc are looking to end reliance on the U.S. dollar.
10 Countries Look To Stop Using the U.S. Dollar, Settle Trade Payments in Local Currencies Instead
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. According to the latest figures from the International Monetary Fund (IMF), commonly called the World Bank, the combined GDP of ASEAN nations currently stands at around $4 trillion.
The move will strengthen their native economies giving local currencies a boost in the global foreign exchange markets. Several developing countries fear the rising U.S. debt of $34.4 trillion can affect their native economies and businesses. Therefore, the only solution to American debt is to make ASEAN countries use local currencies and sideline the U.S. dollar.
The U.S. pressing sanctions on other developing countries is also among the reasons why ASEAN wants to ditch the dollar. A stronger local currency will have no adverse effects from U.S. sanctions making their economies safer. In conclusion, the next decade will be different for the U.S. dollar as many nations are looking to uproot it.
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The USA keeps saying cheaper currency will push the export higher. The fact cheaper currency will benefit the USA economy more than it benefit to Indonesia.
For example, in 1997, the Indonesia debts in 1997 were USD 105 billion. In 1997, 1 USD = Rp 2,000. Thus Indonesia debts were USD 105 billion x Rp 2,000 = Rp 210 trillion. When Soros came in 1998, 1 USD = Rp 16.800. Indonesia debts thanks to the IMF have risen from USD 105 billion into USD 135 billion. Thus total Indonesia debts were USD 125 billion x Rp 16,800 = Rp 2,100 trillion in one night.
Due to the US manipulation, Indonesia debts have risen.
Rp 210 trillion -------------------> Rp 2100 trillion
This is Rp 2100 trillion / Rp 210 trillion = 10x
So basically Indonesia has been made poorer 10x than in 1997.
Imagine if the USD is manipulated into 1 USD = Rp 2,000 trillion?
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