https://www.straitstimes.com/world/china-brazil-strike-deal-to-ditch-dollar-for-trade

42 comments

  2. I think it’s incredibly concerning.

    Being the worlds reserve currency gives us a large amount of power and a large amount of wiggle room.

    If we lose that we’re seriously fucked and this is a pretty big step towards that.

  3. I think nothing of it. I see in world news everyone thinks the USA is going to collapse because of this though

  5. It sets them up for problems. China is a currency manipulator, and only does things in their favor.

    China set a fixed exchange rate between the yuan and the US dollar. This means that the value of the yuan was not determined by market forces, but rather by the Chinese government. By keeping the yuan artificially low, China could make its exports cheaper and more competitive on the global market, while making imports more expensive.

    And China imposes strict controls on the flow of capital in and out of the country. This includes limits on the amount of money that Chinese citizens and companies can take out of the country. They also limit investment by foreign companies.

    I think this will backfire spectacularly against Brazil.

    If I were another foreign leader in South America, say Columbia, I would immediately respond by reaffirming the partnership with the US. They can take over the prominent trading position.

  7. Honestly its expected, they are a BRICS member, I wouldn’t be surprised if the other BRICS states do something similar.

  9. From the perspective of my personal life, I don’t think this affects me much. If I had no idea of such news, I don’t believe I would experience the effects of this development, atleast not for awhile, and not drastically.

    However, from a more geopolitical perspective, I do find this somewhat concerning. Brazil and China’s agreement on the currency and China’s success to rebroker diplomatic ties between Saudi Arabia and Iran are both not so subtle signs of a shift in geopolitical relationships. The US was in no position to be the peace maker for Saudi Arabia and Iran, due to rocky alliance with the former, and practically no diplomatic ties with the latter, and to extrapolate from that, this is also a sign of the United States’ overall strategic failures in the Middle East. Regarding Brazil’s agreement with China, I think this is also a bad sign. Latin America has historically been mostly under the United States’ most immediate sphere of influence, and the United States had done some very shady and unethical things to make sure its southern neibhors won’t “drift” away from it. Now that China is working with Brazil on currency, it is a challenge to US influence in the Americas, and more importantly, it is a direct challenge to the USD, which along with the US military, are the most important tools under the United States’ disposal to maintain global hegemony.

    The United States is in need of careful diplomatic approaches and foreign policy enforcement moving forward, because losing the Middle East and Latin American to China would have very heavy consequences, and if the dollar loses its supremacy, then the world order wouldn’t be as beneficial to the United States than it is now.

    However the silver lining is, I still believe the United States holds advantages over China and Russia in relation to the Pacific and Europe; the development with Japan and South Korea reconciling, our growing ties with Taiwan, and in Europe, Putin’s war uniting NATO like never before are all good signs that United States’ influence has not been completely diminished yet, and considering how much China and Russia are pissing off their neibhors, the United States is still welcomed in those regions to continually spread its influence.

    I know some of you might be feeling uneasy about my answer, because I talk about “hegemony” like a jingoistic lunatic, and I understand why people have issues with the USA, but I still believe the United States is at worst, the devil we know, and knowing the alternative being China or Russia, I still wish for America to maintain its edge.

  10. I’m more interested in your account, OP – posting in both /r/genUSA and /r/buyEuropean is a fascinating combo that points more to an agitator than an innocent curious question.

  11. Another Latin American leftist decides to grow closer to the world’s largest dictatorship. Color me surprised.

  12. Last time I heard of a country switch from trading in the US dollar they got a dose of freedom. Iraq and Libya started trading oil for gold. Suddenly there were weapons of mass destruction involved and Mummar Ghadafi was a tyrant.

  16. I think it makes sense given China has been pushing for the yuan to become the global standard anyway

  18. They did not agree to ditch the US dollar for trade. energy has been priced in dollars since the 70s. You can buy energy in any currency you want, but it will be converted into dollars first and the buyer may have to eat the conversion cost. Brazil will now accept Yuan in payment as well as dollars. That’s it. It’s not a good or a bad thing, it’s just a thing.

    It would take a lengthy essay to explain what’s going on in energy and currency markets, but what’s not going on is the end of the world or the end of America. This has largely been touched off by two events, the Ukraine war and the Biden Administration’s decision to oppose Mohammed Bin Salman, the Saudi Crown Prince and Prime Minister, partly on account of a clumsy and amateurish hit the Saudis carried out on an opposition journalist. Since then, people who don’t know what they are talking about are seeing things that aren’t there.

  21. That’s fine, let them do that. When conflict breaks out in Brazil, which is a possibility with Bolsonaro and gang violence, then let’s see who they turn to for support.

  22. Unpegging from the Dollar to China’s highly manipulated Yuan is going to backfire horribly. I’ll get the popcorn. The BEST case scenario is Brazil becomes an economic slave after the rug is pulled out from under them.

  23. Cool beans I suppose? Sure, having people trade with USD is to our advantage, but somehow I think this is going to backfire on one of these guys more than it will hurt us.

  25. The large Brazilian diaspora in the US is sending US dollars back home. Brazilians are more likely to support Argentina’s soccer team than develop a preference for Chinese yuan over greenbacks.

  27. Just a reminder, almost half of China’s oil imports are on trade routes that are defended by the US Navy that come in close proximity to countries that would love to see nothing less than the collapse of China. The US can do quite literally nothing, and China would lose half a billion to starvation in under a year.

    So no, I’m not worried about my and my country’s sake, and any move by China to isolate the US from them makes me question their decision-making.

  29. LOL.

    China is a currency manipulator.

    China, India, and Russia wanted to team up to create an alternative and they couldn’t because they all wanted their currency as the de facto.

    China also tried to create SWIFT alternative and that didn’t panned out.

    Someone mentioned BRICS (brazil russia india china, and south africa).

    That was coined by Goldman Sach to get investors money to invest in those “emerging markets”. They get broker’s fee.

    That was fucking 20 years ago.

    Brazil squander their chances of any economic growth when they had the demographic now their demographic is shit.

    China’s peak work force is early 2000s. Their demographic is in terminal decline. Cheap Chinese labor is ending soon. The problem is their population isn’t rich, the majority is still poor and their gonna get real fuck.

    Russia is… fucked already unless yall living under a rock.

    South Africa didn’t go any where.

    India? For good lord of 20+ years, they kept the status of emerging. A while back the Indian was jokingly talking about perpetual status of emerging forever. Now there’s a rise in Nationalism, I don’t know when they’ll emerge but it ain’t on Goldman Sach timeline.

    So BRICS in general are in a bad state and I don’t think their economic might will help with anything. Geostrategic is a different story, USA is gonna put a hard stop on any body touching their backyard.

    So do I care if China and Brazil is trading with their shitty currency?

    Nooope.

  30. Seems like a pretty bad deal for both. Now China has the currency of a country that has a terrible economic history and Brazil has a highly restrictive currency controlled by communists with “wolf warrior” diplomacy. Best wishes to both.

  32. China already lost mainly due to their one child policy. Brazil is still developing country world only remember them for FIFA World Cup.

  33. US has what Japan, China never had welcoming people from all our the world. Bharat historically had that tradition too but they are more interested in becoming pure Hindu country at the expense of their Muslim, Christian and Sikh minority.

  34. The predictable result of the shortsighted decision to use the dollar and banking system to wage economic warfare against Russia. Hopefully it stays as it is, because I think a lot of our economy depends on countries using the dollar

  36. Seems like both the us and china are now preparing for war. Makes me sad but what can be done about it?

  37. So the CIA just asking and answering their own questions now huh? Seems totally legit…

  40. I personally don’t care at all.

    The US dollar is used in international trade because it is relatively stable.

    >China has similar currency deals with Russia, Pakistan and several other countries.

    Not really a club I am intererested in.

  42. The entire planet is sick of the US imperialist warmongers’ hegemony and their full spectrum dominance. A multipolar world is a breath of fresh air (which is why so many African countries are snubbing the US for China and Russia), and this represents that shift away from the petro dollar holding everyone hostage as the world reserve currency. On the other hand, I can see many Americans not liking this, because an end to the petro dollar as world reserve currency means their country will become more like Brazil in terms of standard of living, or England after its empire ended and its influence measurably decreased.

Leave a Reply
You May Also Like