[Sentinel]

That is precisely why Gold price will not go up, it will be impossible to peg a currency with Gold if it's value keep going up

Didn't they teach these Central Banks such basics in school? What a bunch of fools at the centrals!

The reason why these Central Banks are hoarding Gold is to ensure they have a hedge against the volatility of its own currency against the peg of the US dollar

Not as a prelude to a Gold standard, which everyone with a bit of intelligence would figure out that this is all one big scammy hype

Gold is finished, it has shown to be so for the last 15 years, hovering around 1,400 to 2,000, a safe haven in times of crisis, but will never be taken seriously if it thinks it will replace USD as the standard for a peg

It is a dream of those Gold hoarders, and they will remain in that dream for eternity, for it is just a dream

[webinarian]

De-dollarisation is not so simple as close to $30 Trillion in debt is denominated in USD. As interest rate has risen the demand for USD has risen to service this rising debt.

...

What are you talking about?  

Do u know that de-dollarization and $30 trillion in debt are 2 separate matters?  

Do you know $30 trillion is what US gov is owing to others? You are talking like others are owing US gov.   

If interest rates are rising, it is US gov who is responsible to find money to pay others. If US gov cannot find money to pay interest or to pay the principal upon maturity, US gov will be in trouble. You are talking like other countries will be in trouble, not US gov.   

If you don't know, don't pretend to talk like you are an expert on financial matter.  

     
.

[sgbuffett]

What are you talking about?  

Do u know that de-dollarization and $30 trillion in debt are 2 separate matters?  

Do you know $30 trillion is what US gov is owing to others? You are talking like others are owing US gov.   

If interest rates are rising, it is US gov who is responsible to find money to pay others. If US gov cannot find money to pay interest or to pay the principal upon maturity, US gov will be in trouble. You are talking like other countries will be in trouble, not US gov.   

If you don't know, don't pretend to talk like you are an expert on financial matter.  

     
.

30T is counting only debt outside US ...but only certain type of debt 

If you count all debt that needs to be repaid in USD the figure is even higher. See chart below

Debt ridden countries once they sell anything to China and received payment they will just convert to USD to repay debt or for as reserves.

[theold]

Brazil recently sold items to China. The latter was paid in USD. The former used the USD to pay off their debt to the US. China gets to get rid of its excess USD. Brazil gets to remove their debt.

[singlon]

[singlon]

[singlon]

with the newly Dola in quarantine due to non-payment of int
and IMF SDR dead in the water
Yellen is pushing to raise the debt ceiling
and of cos she needs buyers
She now address them:

[webinarian]

30T is counting only debt outside US ...but only certain type of debt 

If you count all debt that needs to be repaid in USD the figure is even higher. See chart below

Debt ridden countries once they sell anything to China and received payment they will just convert to USD to repay debt or for as reserves.

The point is I say again, $30T is US treasury debts, US gov will have to pay interest and the increased interest and also to pay the principal upon maturity.   

So, it is US gov will be in trouble, not China to backfire.   

If you are not clear, don't just BS about China to backfire, ok?   

.

[Phoenix]

De-dollarisation is not so simple as close to $30 Trillion in debt is denominated in USD. As interest rate has risen the demand for USD has risen to service this rising debt.

Unfortunately developing countries attempting to break from the US dollar are those with highest debt like Argentina, Brazil etc and they need US$ to service their debt.

What is happening is they are taking advantage of China's dedollarisation efforts to dump their weak currencies that nobody wants in exchange for Yuan. They then selloff the Yuan to get USD to service their debts.

While the media entertain us with dramatic dedollarisation stories , the forex market tells us what is really going on. Even as USD falls against Yen and Euros, it is rising fast against Yuan. The reason is Yen and Euros are also major currencies use for debt financing.

Sorry, I do not quite find this thing plausible about selling emerging currencies into USD and then using the USD to buy the Yuan and then to sell the Yuan for USD to repay their USD debts.

This is too much of a round-about way, which could cause quite a fair bit of losses taken on spreads.  Why cant they just sell their emerging currencies to USD and use that to repay their debts?

They are being hit with a double whammy in terms of a strengthening USD which they have to buy to repay their loans as well as enduring servicing high interest rates  and will not have the appetite to do the first line above.

I think the Yuan weakening against the USD may have other factors than what you mentioned.

[RiseofAsia]

You want to believe SgBuffett or Elon Musk?

https://markets.businessinsider.com/news...ion-2023-4

[webinarian]

Sorry, I do not quite find this thing plausible about selling emerging currencies into USD and then using the USD to buy the Yuan and then to sell the Yuan for USD to repay their USD debts.

This is too much of a round-about way, which could cause quite a fair bit of losses taken on spreads.  Why cant they just sell their emerging currencies to USD and use that to repay their debts?

They are being hit with a double whammy in terms of a strengthening USD which they have to buy to repay their loans as well as enduring servicing high interest rates  and will not have the appetite to do the first line above.

I think the Yuan weakening against the USD may have other factors than what you mentioned.

You are right.  

SgFett is just trying to pretend to be an expert on financial matters but he knows none.   

He talks of emerging countries selling their currency into USD and then selling USD to buy yuan.  

He talks like all countries are just exchanging currency for no obvious reason. Which country would do that such that they have to pay for exchange costs for nothing.   

When EU buy ruble, it is because Putin told them they have to use Ruble to buy Russian gas. They don't do it for nothing like SgFett suggest.  

.

[Phoenix]

Actually, I find SgFett does create awareness from time to time, with charts and graphics. It is useful to understand it better.

This forum should be a melting pot of ideas and perspectives so that we can all learn about what is around us.

I have been wrong before, but humbly learn from my mistakes, as no one is perfect. At no time am I thrashing anyone and I hope no one feels that way.

We live in a more dangerous world nowadays as there are frequent bouts of Fear, Uncertainty and Doubts.

[cityhantam]

Actually, I find SgFett does create awareness from time to time, with charts and graphics.  It is useful to understand it better.

This forum should be a melting pot of ideas and perspectives so that we can all learn about what is around us.

I have been wrong before, but humbly learn from my mistakes, as no one is perfect.  At no time am I thrashing anyone and I hope no one feels that way.

We live in a more dangerous world nowadays as there are frequent bouts of Fear, Uncertainty and Doubts.

One point for you!