Saudia Arabia considering switch to Yuan from Dollar

[Shogon]

Well... at least for Asian exports? But that's just the beginning and a clear continuing trend of a failed United States.

https://www.wsj.com/articles/saudi-arabia-considers-accepting-yuan-instead-of-dollars-for-chinese-oil-sales-11647351541

Assuming all of the events transpiring now don't lead to some type of nuclear war, I would not want to be a kid growing up in the United States in 10 to 20 years. Damn, bruh.

I don't think people truly appreciate just how low the standard of American living is going to drop in relation to other nations once the USD goes.


All of this shit is self inflicted, too. That's the worst thing.

I think democracies will always fail until we remove the ability to control the money supply from the hands of government because human beings as a whole are emotionally incapable of truly accepting the fact that life isn't fair. Aside from the fact that your prototypical American doesn't understand the concept of money whatsoever, people's emotional inability to accept this fact is at the very least half of the reason that governments will largely not run responsible and balanced budgets.

Times get hard? Left or right, people don't care. They want a source of authority to "fix things." Sometimes the only true fix is time but people don't want to wait. Fix it now! Do something!

See covid and the covid response. Money printer go bbrrrrrrrrrrrrrrrrrrrrrrr.

https://i.kym-cdn.com/photos/images/original/001/789/428/a01.gif




Tick-Tock, Tick-Tock. Sad times ahead bruhs.

[Nanners]

It would be hilarious if the Saudis abandoned the US dollar considering they blew up the WTC ~20 years ago (with the help of Israel and the CIA)... also considering the fact that the US spent the past ~20 years bombing almost all of their potential rivals into oblivion.

[Bill Gates]

First off your article requires a subscription so post it in here please. The headline only states that the Saudis are "considering" the Yuan for oil transactions only. Hardly the death of the USD that you're rooting for.

Second, I know you have trouble grasping this, but the entire reason that every country on the planet switched to fiat is because it gives governments the ability to pay for things on demand aka "money printer go bbrrrr". Under the gold or silver standard governments were limited and societies were worse off for that. Today if a bridge needs to be build governments can just "bbbrrr" it into existence at the snap of their finger. Does inflation happen when they do that? Yes but as long as that inflation is within a 2%-3% range it actually helps drive economic growth.

As the population grows. As businesses grow and expand. As the economy in general grows. The money supply needs to grow with it. Can you imagine if the US still had the same money supply it started with back in the 1930s or 40s? Do you think our economy could grow to what it is today if we only had that same money supply to work with?

[Shogon]

First off your article requires a subscription so post it in here please. The headline only states that the Saudis are "considering" the Yuan for oil transactions only. Hardly the death of the USD that you're rooting for.

Second, I know you have trouble grasping this, but the entire reason that every country on the planet switched to fiat is because it gives governments the ability to pay for things on demand aka "money printer go bbrrrr". Under the gold or silver standard governments were limited and societies were worse off for that. Today if a bridge needs to be build governments can just "bbbrrr" it into existence at the snap of their finger. Does inflation happen when they do that? Yes but as long as that inflation is within a 2%-3% range it actually helps drive economic growth.

As the population grows. As businesses grow and expand. As the economy in general grows. The money supply needs to grow with it. Can you imagine if the US still had the same money supply it started with back in the 1930s or 40s? Do you think our economy could grow to what it is today if we only had that same money supply to work with?

Shut the **** up, troll account *****.

[Nanners]

First off your article requires a subscription so post it in here please. The headline only states that the Saudis are "considering" the Yuan for oil transactions only. Hardly the death of the USD that you're rooting for.

Second, I know you have trouble grasping this, but the entire reason that every country on the planet switched to fiat is because it gives governments the ability to pay for things on demand aka "money printer go bbrrrr". Under the gold or silver standard governments were limited and societies were worse off for that. Today if a bridge needs to be build governments can just "bbbrrr" it into existence at the snap of their finger. Does inflation happen when they do that? Yes but as long as that inflation is within a 2%-3% range it actually helps drive economic growth.

As the population grows. As businesses grow and expand. As the economy in general grows. The money supply needs to grow with it. Can you imagine if the US still had the same money supply it started with back in the 1930s or 40s? Do you think our economy could grow to what it is today if we only had that same money supply to work with?

Under the gold standard, this country provided the highest wages and standard of living that any "middle class" has seen in world history. Wages hit their all time peak in early 1973, ~18 months after the US abandoned the gold standard... at this point wages began to stagnate despite productivity continuing to skyrocket.

How exactly does a large money supply grow an economy? In Weimar Germany, bread went from costing less than 1 DM per loaf to costing an entire wheelbarrow full of DMs (billions) in the space of a year or two... is that economic growth? Zimbabwe once had a huge money supply, and you can still buy worthless 100 trillion dollar zimbabwe bank notes on ebay if you need a good prank gift.

If anything, an excessively large money supply is a harbinger of economic disaster.

[Patrick Chewing]

We cucked ourselves to death. Thank you, RRR3. Thank you, blade.


You're the first two people I'm coming for when the power grid shuts down and it's Escape From New York time.



https://c.tenor.com/piSHy0UbA08AAAAd/kurt-russell-snake-plissken.gif

[Bill Gates]

Under the gold standard, this country provided the highest wages and standard of living that any "middle class" has seen in world history. Wages hit their all time peak in early 1973, ~18 months after the US abandoned the gold standard... at this point wages began to stagnate despite productivity continuing to skyrocket.

How exactly does a large money supply grow an economy? In Weimar Germany, bread went from costing less than 1 DM per loaf to costing an entire wheelbarrow full of DMs (billions) in the space of a year or two... is that economic growth? Zimbabwe once had a huge money supply, and you can buy 100 trillion dollar zimbabwe bank notes on ebay if you need a good prank gift. If anything, an excessively large money supply is a harbinger of economic disaster.
What measurement of "standard of living" are you going by? Gold and Silver are both growing money supplies as more is mined each year.

https://www.pewresearch.org/wp-content/uploads/2018/08/FT_18.07.26_hourlyWage_adjusted.png

I can see the 1973 wage peak you speak of but it isn't that substantial and realistically speaking the US left the gold standard in 1933.

[Nanners]

What measurement of "standard of living" are you going by? Gold and Silver are both growing money supplies as more is mined each year.

Back in the 60s a man could support an entire family with a basic factory job. Houses cost ~2-3x the median wage instead of 10-20x, a college education could be paid off with a part time job, a major surgery cost a tiny fraction of what it does today (when adjusted for inflation).

In the post I was originally responding to, you said


Under the gold or silver standard governments were limited and societies were worse off for that.

But now youre saying that gold and silver mines are effective at growing money supplies?

Anyway, heres the reality for working class americans since leaving the gold standard

https://assets.weforum.org/editor/Xkzpnpz_lnI-0WbTH1LJVUdu3JaQrM47Y1BpDDMpXro.jpg

https://imageio.forbes.com/blogs-images/timworstall/files/2016/10/wagescompensation-1200x1093.png?format=png&width=1200&fit=bounds

[Bill Gates]

Gold and silver have growing supplies but not within any government control. When a disaster hits a country that country can not create gold on the fly to fix the disaster. I'm not sure those graphs are related in any way to this debate. I'm just trying to instill the very core basics of why fiat is used throughout the world to shogon and why some inflation is healthy and even needed for a growing economy.

We can look at 1973 since in keeps coming up. In 1973 the US population was 210m today it is 330m. Can you imagine trying to squeeze that rapidly growing workforce into the same money supply? In order to make room for that growing workforce everyone's salary would have to shrink over time rather than grow. Rent and mortgage payments would become more out of reach each year. Deflation is more harmful to the economy than inflation and adding money to the supply stimulates spending.

[Lakers Legend#32]

Well Saudi Arabia is a colony of the US anyway.

[Charlie Sheen]

Gold and silver have growing supplies but not within any government control. When a disaster hits a country that country can not create gold on the fly to fix the disaster. I'm not sure those graphs are related in any way to this debate. I'm just trying to instill the very core basics of why fiat is used throughout the world to shogon and why some inflation is healthy and even needed for a growing economy.

We can look at 1973 since in keeps coming up. In 1973 the US population was 210m today it is 330m. Can you imagine trying to squeeze that rapidly growing workforce into the same money supply? In order to make room for that growing workforce everyone's salary would have to shrink over time rather than grow. Rent and mortgage payments would become more out of reach each year. Deflation is more harmful to the economy than inflation and adding money to the supply stimulates spending.

Not that simple. Low prices on essentials like food have functioned as a subsidy for lagging wages.

[SATAN]

https://live.staticflickr.com/8290/7856626446_36e0b358a5_b.jpg

[AKA_AAP]

Other countries are starting to hang up the phone whenever Racist joe biden calls them. Saudi Arabia is NOT the only country considering leaving USD, there are many other countries in line. Racist joe biden doesn't even know where he is 90% of the time, there's no way he can convince anyone not to dump USD for the Chinese yuan.

[bladefd]

Saudis are not going to switch currency to yuan over dollar anytime soon. :facepalm

They don't gain anything from such a move. The US economy is still the best in the world. China has ways to go.

There is also the question of trust - can you trust the Chinese commie government with a dictator for life and CCP running things? Just last year, look at Jack Ma's disappearance and massive crackdown on ALL their tech companies. They do things with zero warning, including shutting down companies at will (Jack Ma's Ant group) if they offend the CCP or Xi in any way. There is no recourse for it either. Deals are done very different in China with no transparency or explanation for anything. Especially when the CCP are involved.

Also, you are not allowed to invest directly in Chinese stocks if you are not a Chinese citizen or using the Chinese market. Chinese companies use holding companies to allow foreign people to invest in Chinese companies, but you are not technically buying shares in the company itself but rather a holding company. China has threatened to make those illegal. If they do then any money invested in Chinese holding companies would disappear overnight. Unless if China changes that law completely, who is willing to invest in or using Chinese currency?? Especially on the national stage as a nation.

It would take a minimum decade before this becomes an actual thing, let alone a threat where the majority of the globe switches to yuan. Possibly become reality over decades of time as we slowly decline on the world stage over the next few decades. It's not something that can realistically occur overnight. Biden's great-grandchildren will be dealing with it.