"Two Oil Nations on Brink of Prosperity"
Either the east wind prevails over the west wind, or the west wind prevails over the east wind; today, the balance of offense and defense has shifted. In recent years, the United States has launched various challenges against our country, including trade wars and technology wars. It can be said that our country has always been on the defensive. However, since the beginning of this year, China has begun to fight back.
"Quick, accurate, and ruthless" has always been admired, so in the core areas of the United States, we must also strike with a heavy blow. If the internationalization of the renminbi is like a magpie filling the sea, then digital currency is like drawing water from under the pot, and all of this is accelerating. Moreover, not only is Europe taking action, but Venezuela is also standing up. Is the darkest hour for the US dollar coming?
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Is a dollar crisis imminent?
De-dollarization has always been the wish of countries around the world, and efforts have been made since the last century. However, today's dollar has finally reached its most dangerous moment, and all of this is because of us.
We all know that the dollar has become the world's currency mainly because the United States once held nearly 70% of the world's gold, and the United States became the world's largest creditor nation. Coupled with the strong industrial strength of the United States, the dollar naturally became the world's currency.
However, today's United States is losing all of this. Currency is a symbol of a country's comprehensive strength, and the purchasing power of the dollar represents the power of the United States. Therefore, the dollar is a symbol and manifestation of American strength.
But today, the United States has changed from the largest creditor nation to the largest debtor nation, and the industrial strength of the United States has already been transformed due to the United States' focus on financialization. Today, even the United States is gradually losing its position as the largest trading nation.
Therefore, the support for the dollar has long been broken. Can the dollar without commodity support last long?
Moreover, the United States is continuously printing dollars to dilute the value of the dollar. Although the United States' interest rate hikes highlight the advantages of the dollar globally, the interest rate hikes in the United States have reached their end, which means that the United States can no longer raise interest rates and must continue to flood the market.Moreover, the United States is now accumulating debt at an increasingly rapid pace, and the dilution of the US dollar is also accelerating. This will inevitably lead to everyone quickly abandoning the US dollar and assets related to it.
If this is a passive crisis for the US dollar, then the impact of the Chinese yuan on the US dollar is an active crisis.
We know that under the US dollar system, every penny of trade requires us to pay taxes to the United States because we need to use the US dollar for transactions, so we have to passively bear the pain of the devaluation and dilution of the US dollar.
Therefore, the internationalization of the Chinese yuan is inevitable. Moreover, our country has become a major trading country with more than 100 countries, which means that our country has the ability and strength to settle trade with other countries in its own currency.
In recent years, as the United States has raised interest rates and tightened monetary policy, it has led to a dollar shortage in various countries, leading to frequent crises, and the value of the Chinese yuan has naturally become prominent. Therefore, we can see that the use of the Chinese yuan in international trade is increasing.
This year, in our country's trade settlement, the Chinese yuan has surpassed the US dollar for the first time. Of course, this naturally includes the contribution of China-Russia trade settlement in their own currencies. At the same time, Australia's iron ore is also starting to be settled in Chinese yuan, and there are attempts to settle with the Middle East in terms of oil and gas.
Even Argentina has used the Chinese yuan to replace the US dollar to repay foreign debt, and it has already used the Chinese yuan twice. It can be said that the Chinese yuan is filling the gap left by the US dollar.
Moreover, it is not only the internationalization of the Chinese yuan that is impacting the US dollar, but also digital currencies that are challenging the status of the US dollar.
This year, nearly 80% of central banks around the world have been working on the research and development of digital currencies, and this pace is accelerating. We know that digital currencies are considered the most convenient payment method in the future.
In a recent announcement by the Shanghai Oil and Gas Exchange, we can see that on October 19, PetroChina International Company settled an oil order with digital Chinese yuan, and it was a cross-border transaction.That is to say, we have already established a digital Renminbi settlement channel with the relevant countries. In the future, more cross-border trade will bypass the US dollar system and settle in currencies other than the US dollar, which means the US dollar will become increasingly less important.
Is Venezuela transitioning from poor to rich?
The US dollar system can be considered the world's largest exploitative system. With the internationalization of the Renminbi and the acceleration of de-dollarization by various countries, the US dollar system is on the verge of collapse. Countries like Venezuela will also be completely liberated from dollar colonization.
If the United Kingdom was a military colony in the past, then the United States is now a dollar monetary colony. The US continuously exploits the world by滥issuing currency through dollar tides. Today, the US monetary colonial system is collapsing, and countries around the world are preparing for de-dollarization.
This year, central banks worldwide have been aggressively purchasing gold. We know that gold has an inherent monetary attribute, but it is not easy to trade. Therefore, the purpose of central banks is very clear, which is to gradually withdraw from the global US dollar system.
According to data from the World Gold Council, central banks worldwide have purchased a large amount of gold in the past 24 months, and BRICS countries are the largest gold buyers. That is to say, BRICS countries are working hard for a future gold standard. This gold standard is not only gold but also a hybrid of gold and energy.
So we see that while BRICS is aggressively purchasing gold, it is also expanding its membership. New members such as Iran and Saudi Arabia are the main forces of global energy. Therefore, BRICS's de-dollarization today is not an empty talk. It is possible that a BRICS currency will appear in the future.
Moreover, not only China and BRICS countries are supporting their currencies with their own bulk commodities and gold, but Venezuela is also developing a petro-currency, using oil as a foundation to support its own currency. The purpose of all this is to break the US dollar's monopoly on global trade restrictions.
At present, the Middle East is also preparing for a post-dollar era. Countries like Brazil and Malaysia are also seeking to use gold or digital currencies based on gold and other bulk commodities as transaction objects to avoid the US dollar system.It can be said that while the current US dollar system remains the mainstay of the global trade system, it is undeniable that countries around the world are promoting de-dollarization. We know that the process of de-dollarization starts slow, but once the quantitative change reaches a qualitative shift, it will be completed overnight.
A thousand-mile dike cannot withstand the collective efforts of countries around the world, let alone with China taking the lead. Therefore, the United States has reached a time when it is being criticized by many. Moreover, as the United States ends its interest rate hikes and begins large-scale money printing, the dilution of the dollar's purchasing power may push the dollar into an abyss.
In the past, the dollar was the currency of the United States, but it was a global issue. Today, de-dollarization is good news for the world, but it is a symbol of America's decline and the beginning of American inflation.
In the future, more countries will liberate themselves from the dollar colonial system and move towards prosperity.
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