Published September 28, 2024
As the BRICS bloc looks to continue its de-dollarization efforts, one expert has outlined that a failing US dollar would precede the end of the Western empire. Indeed, Geopolitical Economy Report founder Ben Norton recently discussed how the greenback is key to the American prominence that has been present since the late 1940s.
In a recent interview, Norton called the greenback “the strongest weapon the United States has.” Moreover, he noted that the currency has afforded the country immense strength since the Bretton Woods agreement. Yet, the BRICS bloc is looking to change that. Moreover, their developing initiatives could provide the path to it.
US Strength Lies in its Dollar as Experts Warn Of BRICS Opposition
The BRICS challenge of the US Dollar is nothing new. The collective has been threatening the greenback’s position for the last several years. Although it has been a steady process, its efforts have had some kind of impact. According to the Atlantic Council’s Dollar Dominance Meter, the share of the USD global reserve has fallen 14% since 2002; the second year of the bloc’s existence.
The reality is more harrowing, however, when considering the result of these efforts. With the BRICS bloc firm in its position, one expert shares that the US dollar is key to the country’s entire empire. As the currency goes, so too does the dominant status of the nation.
Ben Norton recently called the currency the US ‘strongest weapon.’ Moreover, he noted that its reserve status affords the country exorbitant privilege. Specifically, it can “export many of its economic problems,” by printing more of its currency. A currency that seemingly makes the world go round.
READ FULL ARTICLE
SOURCE: www.watcher.guru
RELATED: US dollar slumps after softer inflation, China rate cut. AUD/USD hits 18 month high
Published September 27, 2024
The Australian dollar is at the highest levels since February 2023 as part of a broad selloff in the US dollar following softer US inflation data and China cutting lending rates.
The definitive break above 0.6900 in AUD/USD cracks the June 2023 high and a series of highs in that range. It’s accelerated higher since.
The Australian dollar is particularly leveraged to a better Chinese economy and the market is enthusiastic this week about a series of monetary and fiscal announcements to alter China’s middling trajectory.
Zooming out, the weekly chart for AUD/USD is showing a breakout.
On the US dollar side, the slide in inflation gives the Fed more leeway to quickly lower rates. The market is almost-evenly divided between 50 and 25 basis points for the November 7 FOMC decision. We still have two non-farm payrolls reports before that decision but it will swing based on incoming economic data and comments from policymakers.
At the moment, the larger theme is China and a potential cyclical pickup in the global economy. That’s generally a bad thing for the US dollar, particularly at a time when the market was pricing in higher US interest rates that G10 peers, like Australia.
READ FULL ARTICLE
SOURCE: www.forexlive.com
Be the first to comment