Alfonso Peccatiello: De-Dollarization Facts vs. Fiction, Gold's Role in New System

[@fubarbrandon1345]

Nice interview Charlotte...thank you.

[@georgemoller2206]

Alf is always level headed and contemplates many aspects on a subject to arrive at sound conclusions. I clicked here to see his discussion on the subject appreciate the insight and have just subscribed - thanks.

[@ncprealty3844]

Two intelligent and classy people.

[@ahsana4468]

One can easily pay off USD debts and simultaneously start issuing debts in BRICKS currency as for an example Russia is already doing this !

[@lrww5673]

Really enjoyed this one. Thanks to both! Keep up the great work.

[@TomSimba]

The reason why we are hearing about de-dollarization is because the disastrous policies of the US are rapidly hastening it's arrival. Countries don't have to buy dollars to de-dollarize, they simply sell it, like many nations doing it now, leading by Japan, with China second. Also trade can be done in a mutually agreed currency, completely bypassing the green back. At least a dozen cuntries have started to do it and the numbers will grow quickly.

[@Peter-MH]

This is a great little channel - I think the subscriber count is about to start soaring!

[@KokayMate]

Thank you Investing News for this solid interview!

[@hildedewaele5069]

🙏 thank you Charlotte. and Alfonso. Great ! Hilde from Belgium

[@gondala]

Dedollarization is simply mean changing the dollar currency with other currency where the two or more countries agree with. That doesn't mean those countries must choose specific currency as replacement for dollar. For example, if china and russia make trade, they don't use dollar anymore, but the currency that they agree upon. Another example, in south east asean countries if they want to trade each other, they don't use dollar or yuan for their trade, but use local currency that they agree upon. So, they don't need to create such "system" to replace dollar system. The impression I get from the speaker is "if you don't use dollar, then you have to choose one currency to replace dollar and make the system as dollar". To me, this is basically wrong idea because those countries don't replace dollar with one specific currency like Yuan for example, but many currencies depending on the countries where they make trade each other.

[@PoliticalMatter]

Every country wants dedollarisation. With weaponisation of $; it is real hard to other countries to stick to it!

[@watb8689]

gold, silver is the best

[@thorstentrapp274]

Alfonso, US$ denominated debt can't be paid back with currencies just because there are not enough currency units in existence. It can be paid back in gold after it has appreciated in value significantly though. So, the value of the US$ goes down in a situation like that.

[@ds-kj8fq]

Only everybody would just get along it would be a better world

[@grjoe4412]

What about bitcoin as a reserve currency?

[@ds-kj8fq]

I hear your point, but what you need to look into as well if you're talking about the the West I think they're cutting out the West, But it seems if dollarization is more than that . I believe this is a processes to cut Europe and United States out of the brics economies I don't think they want to do business with the West and that is what we need to look at because from what being said online all the time you can definitely tell that we're heading it's going to school systems independent of each other no business between those two systems the system with the most commodities is going to survive more

[@marcopolotimetraveller]

See what you're saying......however from my perspective it seems to me that the West is cutting ITSELF off from the rest of the world.

[@tlebryk]

EXTREMELY important discussion about dedollarization and BRICS bond markets. BRICS currency will not work without a free, open, and deep BOND market! Thanks for a great interview.

[@GOLDEN_ROGER118]

DE-DOLLARIZATION 💵 💲 🤑 🎉🎉 GOOD BLESS 😂

[@M3LTUP]

I think the World is happy to keep the Dollar as the WRC for one reason. Nobody else wants the job. Because alot of responsibility comes with it.

[@ahsana4468]

You sound like a guy with not enough knowledge

[@marcopolotimetraveller]

Nobody else will HAVE the job. The USD will not be replaced by another reserve currency. It will be replaced by a neutral reserve ASSET. Gold.

[@mustg4891]

Dedollarisation never happened? what world are you live in?

[@jaytan915]

Nobody needs to move away from the Dollar unless sanctioned by the US government. However if the Dollar is a bit less used and a bit less held then there could be a profound shift in global pricing. Imagine if countries begin to see the benefits of maintaining a balanced budget instead of the Western model based on debt. We won't need to keep so much foreign reserves and Dollars. We could trade with each other in local currencies and settle balances in gold which is widely accepted. We would work harder to produce and sell more if we wanted to be richer and buy and consume more for a better lifestyle. We would redeem our maturing US treasury bond holding as they mature and reduce our foreign borrowings in tandem. Yeah, our foreign borrowings are bigger than reserves. So we reduce the deficit gradually with our trade surplus. After all we are still a commodity producer, low cost manufacturing base and major trading country. We are the rest of the world. Meanwhile a bit more Dollars return home and goes into buying stuff and increasing prices. Life gets more expensive for the US and Western countries. Bringing the jobs home and sanctions are great for employment and keep demand high. All the social programs which are your human rights cost a lot and you wage wars you cannot afford. All very inflationary for the Western economies.

[@handle-changed]

??? China has surplus, almost all others have deficits, so what are you talking about ? If you want to have surplus you need country with deficit. and if USA would not be willing to be reserve currency anymore it would became more balanced (and still rich like before being reserve currency) More manufacturing would come back to west gain. China has become rich and developed with the help of west. and if we would go back before debt system people would be even poorer. debt has allowed progress. Imagine if people could not buy houses for debt- to simplify your understanding. And pegging everything to gold or commodities ais beyond idiotic because you limit progress to commodities that are limited you would cause idiotic appreciation of commodities and make people poorer and destroy production

[@jaytan915]

​@@handle-changed You are probably right about China but I was thinking more of the many lesser countries like my own with 2.5x foreign borrowings although showing a healthy USD100bln foreign reserves. I maintain my partiality to a balanced budget for both countries and individuals. Personally, I have lived well within my means, have only taken debt in my younger days for specific purposes and short periods but have not been impoverished despite being idiotic as you described.

[@rodhelms-yt2pk]

It be better to put other countries behind the dollar and have it managed by a lot of countries and free the world from the banker who have proved to be wicked

[@lavague7648]

Great insight. There is actually a way through to get rid off dollar denominated debt. You need someone to buy it. And this someone is....china, because china has dollar reserves and hold us debt looool. Anyone that holds usd can buy such debt. So i wouldnt bet that dedolarisation will be a slow process.

[@buttlesschap]

Yeah that is what is happening while China cuts UST holdings. Then those Global South countries go on to just buy RMB bonds instead.

[@lavague7648]

@@buttlesschap . Thanks for the insight. It can be even harder for dollar. The key is the new debt. If new debt of bricks is denominated in e.g. yuan then in very few years will loose a looot of its current power.

[@grjoe4412]

@@buttlesschap When the Chinese Communist government collapse, all the debt you hold will become toilet paper.

[@brianborse3555]

Wow! Nice to see a big macro voice on this channel :)