“The fall in the US currency has taken the dollar index from over 114 points in September to 101.53 by mid-morning on Wednesday in New York, its lowest point since May 31”
There’s a lot of selling pressure on the USD which has the same effect as the Chinese returning Treasuries.
It’s been reported that Xi met with Gulf oil countries at Davos and communicated his message of “renminbi invoicing”. Gulf oil going east plus renminbi pricing = dawn of petroyuan. At the same time Russia is considering demanding payment for their oil in gold and not the dollar. Birth of petrogold. The price of oil could be in part pegged to the price of gold. Russia is looking east going forward. I assume India will make their move away from the dollar at some point.
How this goes down no one knows but laws and regs will be changed to continue the status quo. No dollar crash. Too many dollars floating around and it takes time to dump them. We’ll just be hamstrung by debt and infrastructure erosion as the dollar declines. Our strength continues to be diversity, climate, and ESG until America 2.0 evolves. Our adversaries clearly have other plans.