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The end of dollar hegemony is near August 27, 2018

Posted by hslu in China, 石油, 美國, Economics, Energy, Oil, Russia, Trade, Trump, U.S. dollar, 川普, 中國.
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Source: Yahoo News

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http://flip.it/DMljla

The unintended consequence of U.S. sanctions against Russia, Iran, Turkey, China and many other countries, companies and individuals in the world is the rise of Renminbi as an alternative to U.S. dollar in global trades.

The U.S. sanctions forced these nations to come up with a new “SWIFT” system to move money without the use of the current SWIFT network which is controlled by the America.

Trump initiated the sanctions against the world and China’s currency received wider acceptance.

因果報應啊。

Another thing which reduces the global demand of the U.S. currency is, strangely enough, the rise of the shale oil production in the U.S. As America produces more from tight formations, oil imports from foreign countries is reduced by as much as 6 million barrels every day. At roughly $70 per barrel for WTI, that’s a reduction of $420 million of U.S. dollar in global commodity trades every day.

And what might be the consequence of that? It is hard to say now but it will happen when people are least expected.

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