Dollar-denominated reserves - ie central bank holdings - adjusted for valuation effects are now lower than gold reserves for the first time since the International Monetary Fund started publishing the data in the late 1990s.
Unadjusted dollar reserves then come to about $4 trillion, barely half the $7.5 trillion for the unadjusted measure reported by the IMF, which includes the interest earned on them (I use the Bloomberg US Treasury Index and take its return out of the unadjusted number). The IMF-reported amount is real, but it doesn’t capture active demand.
The same argument can be leveled at gold. Holdings of central banks could simply be passively benefiting from the metal’s historic rise in recent years. But if we consider the adjusted value of dollar reserves as the currency’s “weight,” then it has fallen 15% since official holdings of the US currency peaked around 2014. Whereas (almost exclusively emerging markets) central banks have increased their physical holdings of bullion, in tons, by 15%. It’s thus hard to refute that actual demand for dollars has been materially softening.
no its not that, its trump attempt at distraction that has caused last damage tot he dollar.
It’s also caused hundreds of thousands of deaths of innocent people, including children, but that’s not important. /s
These kinds of comments are frustrating to me.
Yes lots of things are important, some more than others. What is your point exactly? That nobody should bother covering a story of great significance to the world economy and geopolitics?
It is in fact possible to write about more than one thing and regard many things as important and worth discussing. The existence of an article about dedollarization does not erase the existence of many other articles about the death, suffering, and human cost of war. I assure you that you can find many such articles quite easily and are even free to post them here as you wish.
My point is that I’m tired of our governments looking at these crimes against humanity and human catastrophes through economic lenses. Not really acting on it until it affects their bottom line. Not applying any kind of sanctions or taking any action against these criminal nations and even going as far as enabling them instead because it’s good for the dollar.
Who gives a shit about the fucking dollar?
Palestinians are dying
Lebanese are dying
Iranians are dying
Cubans are dying
But let’s talk about how this affects the power of the dollar instead because that’s SO MUCH more important.
Fuck the dollar. I don’t care if it sinks and we switch to the Euro or even the Yuan. We’re just gonna change the baseline for another one. We’re still not going to be able to afford anything anyway.
And all of this dor what? So our governments can be complicit in making a handful of rich delusional epstein class assholes able to manipulate the stock market for more money and power?
I’m sick of this.
Life > dollars.
I’ll start by saying that I don’t disagree with you. Human lives are significantly more important than the dollar. I would also like more people to do things because it is the right thing rather than doing things for money. However, news stories will always be told from multiple angles, and there will be more angles with bigger events like these wars. It is unrealistic to expect people to only ever talk about the worst outcome of an event and turn a blind eye to relatively smaller bad outcomes.
This is also news that some people will want to know. You seem to be asking that this story not get written or discussed because there is human suffering involved, but is it not still newsworthy? If this same thing was happening during a time of world peace, do you think it should be written about? If you think it is something that could be reported on in a time of peace, why should it be ignored in a time of war?
You said in your comment, “But let’s talk about how this affects the power of the dollar instead because that’s SO MUCH more important.” Articles like these are not saying we should talk about the power of the dollar instead of human suffering; they are providing another angle to the conflicts. This article exists, but so do countless others that talk about the death and destruction of wars. It is not like this article somehow stops others that you care more about from existing. Also, while I can’t read the article due to the paywall, I have my doubts that they wrote about how devaluing the dollar is more important than the deaths.
You also ask who cares about the dollar, and the answer is a lot of people. Humans can have compassion for people that they have never met, but they also care about the people they personally know. Changes in the dollar affect people’s lives on a personal level. It’s a hard ask for people to ignore their own well-being or the well-being of their families for people they haven’t met.
Lastly, I think you yourself are making an argument for this article existing. You say that governments and other powerful people view things through the lens of their own wealth. Wouldn’t articles like this one push those people into action to stop conflicts? If they read about how their own money will be affected by war, they are more likely to push for an early end to wars. If they never know something is hurting their wallet, they are fine with it continuing. It is a nice idea that these people would just care about humanity over money, but it seems unlikely that change is coming any time soon. We might as well speak their language to try to stop the suffering.
And two things can exist at once. I’m tired of people like you bitching any time death isn’t being talked about.
We fucking know death and destruction is happening. We know it’s fucking awful.
WE NEED A FUCKING BREAK WITH SOME OTHER AWFUL NEWS THAT ISNT ACTIVELY MAKING ME WANT TO JUMP OFF A CLIFF.
SO LET US HAVE THIS.
I feel the same way about the war as you do, as far as i can tell. It is a moral outrage that the rich and powerful can kill and destroy with impunity.
Because of my work, the article is interesting to me, but it adds nothing to my opposition to economic coercion and illegal wars. i am not persuaded by it because i care more about the human aspect than the economic side.
if the article were to persuade someone else to join us in opposition to the conflicts you mentioned, though, i would say it was a good article for that reason alone.
we need a coalition of people with different priorities who are opposed to the wars, simply because that is the best chance of ending them.
i agree wit him and my point wound be bloodberg should eat a dick
and then self reflect
We can talk about other effects of the war too.
The real tragedy of all this is that it makes life slightly harder for the most privileged country on Earth.
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Uh, Trump has caused lasting damage to the dollar. Not just this stupid war.
Fuck Trump for sure, and fuck the dollar too.
We are slow moving train wreck of a collapse, and I for one welcome our new insect overlords.
Fuck us US
I’m having a hard time understanding the post content. Can someone ELI5?
Agent Krasnov putting in work.
As a Brit, 🤷🏽♀