Comments by "MarcosElMalo2" (@MarcosElMalo2) on "Let's Talk De-Dollarization - Why the Dollar Isn't Going Anywhere Anytime Soon" video.

  1. It wouldn’t have to give up capital controls, it would just have to be totally transparent about what it is doing. And it would have to explain what it is doing and why. The U.S. Federal reserve does manipulate the dollar, mostly with interest rates, but it is totally transparent about what it is doing and what it plans to do. It lays out the strategy it plans to employ to meet certain pressures. I do not see China willing to reveal its inner financial workings. I don’t see the world trusting them if they were to announce plans to imitate the Fed’s transparency. There’s also the matter of China having two currencies, one for internal use that cannot be legally traded for external use Renminbi or foreign currencies. How does China equalize the two currencies? Then there is the matter that the Chinese government operates like a holding company. It is by far the largest domestic investor. Businesses worldwide aren’t just competing with Chinese businesses. They’re competing with the PRC, inc. The bottom line is that there is too little international trust in China for the renminbi to replace the dollar as the world’s reserve currency. BRICS, schmicks. None of the other members trust China, let alone each other. The BRICS alternative currency has been talked about by the members for a dozen years, at least. It should be clear by now that the group’s ambitions far exceed their reach. (And how long before Russia is uninvited from the group?)😊
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  2.  @2639theboss  This is a very important, if not the most important, reason why the dollar is trusted as a reserve currency. The Fed sets monetary policy (i.e., intervenes or manipulates) TRANSPARENTLY. It announces what it is doing and what it is planning to do. It explains what it is doing and why. People might not like any particular action, but most (except for a few cranks) trust the Fed. I don’t see the Chinese being similarly transparent. First of all, they’d have to come clean on what they have been doing. They risk their whole house of cards falling down. Second of all, the Chinese government operates like a closely held company. They are the biggest investor in Chinese business. The PRC is like a holding company, and the CCP is its board of directors. Transparency would reveal too much about their operations.
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  3. Just don’t invade your neighbors or support terrorism. If you’ve got nukes, don’t try and blackmail the world with them, and if you don’t have them, don’t try to get them. Russia isn’t the first country to be punished by the weaponized dollar. Look at Iran and North Korea. Here’s the thing. The sanctions against Russia wouldn’t be an effective weapon if other countries weren’t supporting the sanctions. If you’re mad that the U.S. acts like the world’s policeman, you should remember that the world’s most important economies want the U.S. to continue in that role. It’s a pretty simple choice for any nation. Be a law abiding global citizen and those mean old Western Democracies won’t pick on you.
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  4. This is the end, beautiful friend This is the end, my only friend, the end Of our elaborate plans, the end Of everything that stands, the end No safety or surprise, the end I'll never look into your eyes again. The end. The banker awoke before dawn He put his boots on He took a Benjamin Franklin mask from the ancient gallery And he walked on down the hall. Fed Chairman? Yes, son? I want to de-dollarize your reserve currency.
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