Are China & Russia quietly trying to form a coup against the U.S. dollar?

[OneMoreRep]

With all speculation pointing towards a likely US economic crash, we've started to see some of the classic techniques in trying to stop a crash being employed:

Govt spending cuts
Restructuring of debt
Wealth redistribution (via stimulus packages + social welfare programs)
Central bank dropping interest rates to 0%

The next stop is to print even more money, which could assist to some extent, but does open the US to possible stagflation and/or even hyperinflation if not carefully done. But what if this is slowly playing perfectly into what China & Russia have been engineering for the last 5 years? Back in 2015, bilateral trade between China & Russia was mostly conducted in the form of the dollar, constituting 90% of currency used in their bilateral transactions. Today, the dollar is used in only 46% of the trade between both countries. They keep it up and happen to gather a few more alliances throughout the east (say Japan and many of the middle east countries) and we could lose our position as the FIAT currency. In other words, it looks like a well engineered plan towards de-dollarization.

Not to mention that China could very well start to cash in their US debt and simultaneously stop lending us money (buying our bonds). Especially now that we've taken to targeting China as hard as we can (as the enemy), this could be the perfect storm the Chinese have been waiting for to literally fuck the USA up the ass by showing us what happens when you figuratively "bite the hand that feeds you".

What if these two enemies to the American way are simply organizing a massive coup against the U.S. dollar?

What say you master GetBig economists?

"1"

[El Diablo Blanco]

China has been hoarding US dollars for over 3 decades.  They don't trade to us but they sell to us and the USA are their biggest consumer.  We give them trillions in. cash for shitty goods to be sold at walmart.  China has the power to destroy our economy but at the same time if they did that, they would essentially destroy their number 1 consumer so it's a lose/lose scenario.

[RK]

 Not quietly but loudly and meticulously

[RK]

What if these two enemies to the American way are simply organizing a massive coup against the U.S. dollar?


"1"

What is an american way? Exceptionalism? Hollywood? You have an overstretched military that has become quite useless, that is called a last nail in the coffin.

[oldtimer1]

China's economy is very dependent on the US. If US stopped all trade their economy would crash.  It would be foolish for them to try to devalue the American dollar. Right now we can see that China is holding back shipment of goods to send a statement to the US even though it's hurting their economy.

I will use the getbig example. You can't find exercise equipment because the majority of it is made in China. Power blocks and Iron Master can't get inventory. Look on Amazon and try to find an exercise bench. They are all very limited.  Where you could find 12 scott curl bench brands you might be able to find three brands for sale now. Anything that has parts from China are becoming hard to find.

[OneMoreRep]

China has been hoarding US dollars for over 3 decades.  They don't trade to us but they sell to us and the USA are their biggest consumer.  We give them trillions in. cash for shitty goods to be sold at walmart.  China has the power to destroy our economy but at the same time if they did that, they would essentially destroy their number 1 consumer so it's a lose/lose scenario.

But I am starting to become less inclined in believing that. China could simply become the Walmart to the rest of the civilized & uncivilized world.

They could simply be playing their cards right to bring about another great depression to the US economy, all the while hedging against the terrible effects of inflation by holding on to 2 of the most powerful assets in the US that might be left (raw land/real estate & US debt). Once the US slowly turns the corner (say in 5-10 yrs after that kind of disaster), they then own a much larger market share of America. China already owns anywhere between 10-15% of US land/real estate. They could double down during a great depression and work their way towards 50%.

Look into some of these "snake-in-the-grass" Chinese banks that are operating in places like California & Seattle under the guise of giving new homeowners low interest rate loans with really sketchy underwriting that often times leads these homeowners (or better said - debt owners) to lose their homes as its part of the overall collateral to the mortgage.

The older I get, the less I trust the Chinese (and by Chinese, I mean their communist central bank). The average Chinese person is just fine and has very little influence in these matters.

"1"

[King Shizzo]

A 20 is worth 20, and a 100 is worth 100, in America.

They literally print money whenever they want.

Just like the stock market. It's a scam.

[OneMoreRep]

China's economy is very dependent on the US. If US stopped all trade their economy would crash.  It would be foolish for them to try to devalue the American dollar. Right now we can see that China is holding back shipment of goods to send a statement to the US even though it's hurting their economy.

I will use the getbig example. You can't find exercise equipment because the majority of it is made in China. Power blocks and Iron Master can't get inventory. Look on Amazon and try to find an exercise bench. They are all very limited.  Where you could find 12 scott curl bench brands you might be able to find three brands for sale now. Anything that has parts from China are becoming hard to find.

Their market doesn't suggest such when they're leaning away from using the US dollar.

Moreover, the US doesn't understand how to employ the techniques the Chinese use to devalue their currency. China deliberately weakens its currency in order to boost exports to the USA (boost demand for their goods). 

What I'm looking towards is the bigger play at hand. What is it that these massive powers (China & Russia) are up to? Forget the day-to-day sale of goods to modern day Americans, instead look towards what they are doing on a larger scale to influence foreign markets.

"1"

[OneMoreRep]

A 20 is worth 20, and a 100 is worth 100, in America.

They literally print money whenever they want.

Just like the stock market. It's a scam.

Not quite my young friend. Due to the effects of inflation, when looking back about 60 years, $20 in 1960 is equivalent in purchasing power to about $175.62 in 2020, a difference of $155.62 over 60 years (https://www.in2013dollars.com/us/inflation/1960?amount=20).

Printing money drives us to different types of inflation and ultimately changes the effective rate of inflation over time.

You know, the whole gallon of milk today-vs-yesterday argument your grandparents used to make?

"1"

[King Shizzo]

Not quite my young friend. Due to the effects of inflation, when looking back about 60 years, $20 in 1960 is equivalent in purchasing power to about $175.62 in 2020, a difference of $155.62 over 60 years (https://www.in2013dollars.com/us/inflation/1960?amount=20).

Printing money drives us to different types of inflation and ultimately changes the effective rate of inflation over time.

You know, the whole gallon of milk today-vs-yesterday argument your grandparents used to make?

"1"

My point, is that you print it while you got it. Who cares what inflation is, when you can print however much you want? They can always make new denominations. Why do you think criminals have tried to print currency? It's still has value, and if it's coming out by the sheetload.......Still gains to be made.

[RK]

What is it that these massive powers (China & Russia) are up to?

"1"

 Russia and China are gaining influence and power, USA is losing. Hope this helps

[SOMEPARTS]

Answer to OP is yes and that is the reason the US added to the money supply so drastically this year. The lifeblood of the system is predictable inflation levels. All future prosperity has already been accounted for under the current system by those who "manage" it frontrunning EVERYTHING. The game now is how long can the printing outrun the payback/financial reality.

[Marty Champions]

We are lucky to have the scam dollar... The roths and rockefellars started the fed reserve . Without it we would be bartering or struggling with precious metals. And 'credit' is a whole nother level to giving people currency that they havent earned. The fed reserve is genius scam dollar that made it possible for industrious people.

[OneMoreRep]

The game now is how long can the printing outrun the payback/financial reality.

I'm leaning more towards us running into another great depression.

"1"

[Marty Champions]

Steady inflation hasnt hurt us , inflation becomes a total wash since every price is inflated

Not quite my young friend. Due to the effects of inflation, when looking back about 60 years, $20 in 1960 is equivalent in purchasing power to about $175.62 in 2020, a difference of $155.62 over 60 years (https://www.in2013dollars.com/us/inflation/1960?amount=20).

Printing money drives us to different types of inflation and ultimately changes the effective rate of inflation over time.

You know, the whole gallon of milk today-vs-yesterday argument your grandparents used to make?

"1"

[SOMEPARTS]

I'm leaning more towards us running into another great depression.

"1"

I would argue that is not possible, and that the game will go on until they invent a new one to replace it. The brutal standard of living decrease of deflation/depression would not go well in this soft assed country. It would be total chaos if the AC and cell phones were turned off, let alone if food became scarce. It would be carnage in the cities. Hilarious that people are rioting when they are enjoying the easiest life in recorded history for an average plebe.

[OneMoreRep]

I would argue that is not possible, and that the game will go on

But it is possible, because its happened before and we can't disregard what history has shown us. Regarding the game going on, all empires crumble sooner or later, that's one thing history has taught us and given us the proper blueprint for. While it is dangerous to apply to the future inductive arguments based on past experience, we do have the broad reasons why past experience was what it was.

While we have many safeguards in place to hedge against a depression as compared to our friends in the 1920s, we are less and less financially bulletproof as we once thought ourselves to be. 2008 showed us that the vast majority of Americans are pretty naïve when it comes to basic economics and finances.

The US experiment on Capitalism can't be sustained with so limited capable minds at the helm. If Biden and CUM-LA win, it's over my friend. Chaos and I will hold the line as much as we can via actual firepower, but the plebs will break through the Trojan gates.

"1"

[Marty Champions]

Housing is the most honest currency. We got through 1920 depression because people developed land and built houses from the trees on the land.  You couldnt borrow much there fore a man had to create value. 2008 is another big lie, 

But it is possible, because its happened before and we can't disregard what history has shown us. Regarding the game going on, all empires crumble sooner or later, that's one thing history has taught us and given us the proper blueprint for. While it is dangerous to apply to the future inductive arguments based on past experience, we do have the broad reasons why past experience was what it was.

While we have me safeguards in place to hedge against a depression as compared to our friends in the 1920s, we are less and less financially bulletproof as we once thought ourselves to be. 2008 showed us that the vast majority of Americans are pretty naive when it comes to basic economics and finances.

The US experiment on Capitalism can't be sustained with so limited capable minds at the helm. If Biden and CUM-LA win, it's over my friend. Chaos and I will hold the line as much as we can via actual firepower, but the plebs will break through the Trojan gates.

"1"

[Mr Anabolic]

While it's still worth something you can use the devaluing USD to buy gold, silver, ammo, food, water, supplies, etc. 

You better be getting prepared while there is still time.  After November... look out. 

[Marty Champions]

While it's still worth something you can use the devaluing USD to buy gold, silver, ammo, food, water, supplies, etc. 

You better be getting prepared while there is still time.  After November... look out.

gold and silver to save us is a myth. The only thing that can save people is that 1 out of 7 men that actually create value above what he takes from value

[OneMoreRep]

Housing is the most honest currency. We got through 1920 depression because people developed land and built houses from the trees on the land.  You couldnt borrow much there fore a man had to create value. 2008 is another big lie,

Housing is "one" of the best hedges against inflation. It allows for the value of your property to rise during inflation, rents to be increased in order to adjust for inflation and facilitates mortgage payoff in lesser time due to increased money on hand. (That's a free lesson to the newbies that know nothing about hedging against inflation).

But the conversation changes a bit when a market collapse occurs like in the great depression. Sometimes, having property can backfire if your tenants move out because they can't pay rent and then you are left with a rapidly depreciating liability on your hands. (That's a more advanced lesson I won't teach for free).

"1"

[OneMoreRep]

While it's still worth something you can use the devaluing USD to buy gold, silver, ammo, food, water, supplies, etc. 

You better be getting prepared while there is still time.  After November... look out.

I'm with you on the bolded aforementioned. I am just not convinced on the gold & silver angle. You see the quick pump and dump Buffett is doing with gold? Even he doesn't truly believe, but he sure knows the common masses will fall for anything he farts out.

You can't eat gold & silver brother.

"1"

[Mr Anabolic]

gold and silver to save us is a myth. The only thing that can save people is that 1 out of 7 men that actually create value above what he takes from value

You're a myth.  Stop phishing this website.

[Mr Anabolic]

I'm with you on the bolded aforementioned. I am just not convinced on the gold & silver angle. You see the quick pump and dump Buffett is doing with gold? Even he doesn't truly believe, but he sure knows the common masses will fall for anything he farts out.

You can't eat gold & silver brother.

"1"

Do what you will.   History proves you wrong.

[King Shizzo]

Diamonds and Gold.....Humans made it up to make fortunes and laugh at the masses. You create currency to control the economy.