04-06-2023, 05:46 PM
On the dollar, reserve currency, gold, BRICS, etc
<!-- SC_OFF --><div class="md"><p>Seeing as we had another post with a very dismissive attitude towards all things in this area I thought I'd chime in the way I see it: There's two sides pushing opposing views and nothing in the middle.</p> <p>A few months ago I saw some goldbug types tweeting (what I thought were) interesting numbers regarding central banks gold reserves over the years. This was after Russia attacked and the war had started. The US went to work fucking Russia's life up as best they could (not a political statement) and the rest of the world seemed to react to this display of power from the US kinda like "oh shit, they can just freeze our reserves" or so the narrative along with the posts went. </p> <p>A January article:</p> <blockquote> <p>Central banks added a whopping 1,136 tonnes of gold worth some $70 billion to their stockpiles in 2022, by far the most of any year in records going back to 1950, the World Gold Council (WGC) said on Tuesday.</p> <p>The data underline a shift in attitudes to gold since the 1990s and 2000s, when central banks, particularly those in Western Europe that own a lot of bullion, sold hundreds of tonnes a year.</p> </blockquote> <p>~ <a href="https://www.reuters.com/markets/commodities/central-banks-bought-most-gold-since-1967-last-year-wgc-says-2023-01-31/">https://www.reuters.com/markets/commodities/central-banks-bought-most-gold-since-1967-last-year-wgc-says-2023-01-31/</a></p> <p>A gold bug dude Ronnie Stoeferle tweeted this report which had a detailed history of how the dollar came to be reserve currency and why this sucks for everyone else: <a href="https://ingoldwetrust.report/wp-content/uploads/2022/05/In-Gold-We-Trust-report-2022-english.pdf">https://ingoldwetrust.report/wp-content/uploads/2022/05/In-Gold-We-Trust-report-2022-english.pdf</a></p> <p>There's talk of the BRICS maybe doing something but that suddenly explodes with news stories kinda coming out at an accelerating pace regarding trade in yuan etc.</p> <p>Lots of twitter accounts posting things like "The dollar isn't losing itsposition as reserve currency, gtfo you idiots" and there seems to be a dismissal of some facts here where literal history is made when trade is setttled in non dollars.</p> <p>So before you pick a side of this whole story get some extra information on why each side is saying what they're saying. Personally don't think the dollar is going anywhere for many years but I do think change is happening in that way where, you'd look back and say it happened slowly and then all at once.</p> <p>That change could just be a decline in % of world trade to half. It could be anything. The BRICS guys need to be careful about handing China the same power the USA has with their currency but it looks like China is playing them all really well. </p> <p>But please do remember the USA is indeed in a position of exorbitant privilege when disucssing, I hate when there's ignorance of historical context in these discussions. </p> <p>disclosures : Not a gold bug myself. Have like 5% of my money in a gold miner tho. Live in a BRICS country (the S). Have couple % in a China ETF. Small money at that. I'm poor.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/youvebeenjammed"> /u/youvebeenjammed </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/12dmref/on_the_dollar_reserve_currency_gold_brics_etc/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/12dmref/on_the_dollar_reserve_currency_gold_brics_etc/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>Seeing as we had another post with a very dismissive attitude towards all things in this area I thought I'd chime in the way I see it: There's two sides pushing opposing views and nothing in the middle.</p> <p>A few months ago I saw some goldbug types tweeting (what I thought were) interesting numbers regarding central banks gold reserves over the years. This was after Russia attacked and the war had started. The US went to work fucking Russia's life up as best they could (not a political statement) and the rest of the world seemed to react to this display of power from the US kinda like "oh shit, they can just freeze our reserves" or so the narrative along with the posts went. </p> <p>A January article:</p> <blockquote> <p>Central banks added a whopping 1,136 tonnes of gold worth some $70 billion to their stockpiles in 2022, by far the most of any year in records going back to 1950, the World Gold Council (WGC) said on Tuesday.</p> <p>The data underline a shift in attitudes to gold since the 1990s and 2000s, when central banks, particularly those in Western Europe that own a lot of bullion, sold hundreds of tonnes a year.</p> </blockquote> <p>~ <a href="https://www.reuters.com/markets/commodities/central-banks-bought-most-gold-since-1967-last-year-wgc-says-2023-01-31/">https://www.reuters.com/markets/commodities/central-banks-bought-most-gold-since-1967-last-year-wgc-says-2023-01-31/</a></p> <p>A gold bug dude Ronnie Stoeferle tweeted this report which had a detailed history of how the dollar came to be reserve currency and why this sucks for everyone else: <a href="https://ingoldwetrust.report/wp-content/uploads/2022/05/In-Gold-We-Trust-report-2022-english.pdf">https://ingoldwetrust.report/wp-content/uploads/2022/05/In-Gold-We-Trust-report-2022-english.pdf</a></p> <p>There's talk of the BRICS maybe doing something but that suddenly explodes with news stories kinda coming out at an accelerating pace regarding trade in yuan etc.</p> <p>Lots of twitter accounts posting things like "The dollar isn't losing itsposition as reserve currency, gtfo you idiots" and there seems to be a dismissal of some facts here where literal history is made when trade is setttled in non dollars.</p> <p>So before you pick a side of this whole story get some extra information on why each side is saying what they're saying. Personally don't think the dollar is going anywhere for many years but I do think change is happening in that way where, you'd look back and say it happened slowly and then all at once.</p> <p>That change could just be a decline in % of world trade to half. It could be anything. The BRICS guys need to be careful about handing China the same power the USA has with their currency but it looks like China is playing them all really well. </p> <p>But please do remember the USA is indeed in a position of exorbitant privilege when disucssing, I hate when there's ignorance of historical context in these discussions. </p> <p>disclosures : Not a gold bug myself. Have like 5% of my money in a gold miner tho. Live in a BRICS country (the S). Have couple % in a China ETF. Small money at that. I'm poor.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/youvebeenjammed"> /u/youvebeenjammed </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/12dmref/on_the_dollar_reserve_currency_gold_brics_etc/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/12dmref/on_the_dollar_reserve_currency_gold_brics_etc/">[comments]</a></span>