Okay folks, here is something else that Trump has to deal with and I expect following administrations as time goes past
Seems like the EU wants to by-pass the USA financial system which we all know is huge
Just a quick review in case you live under a rock
Trump sanctioned Iran, mostly it's oil, and told the world anybody doing business with Iran would not be able to access the financial or monetary system the USA has in place. That meant nobody could do business when it came to payments or receipts as this is all done in USD. Some small business is done in Euros but the reserve dollar payment system still swamps all other currencies
Well some countries do not like the reserve dollar stopping commerce and especially Iranian oil.
SO enter Russia
Russia and some EU countries have banded together and are trying to formulate a system of payments with out the use of USD. Until russia came into the picture it was all just wishfull thinking. Now the thought is if China will join this new payment system as they buy a lot of Irian oil. China has not made any comment, as of yet
And of course some countries want to keep the Irian nuclear development from going ahead
Depending on which source you read it seems to be a development that will take time [if it even happens]
Personally i think if Russia and china convince the EU to join, a new payment system for trade and commerce, will happen. Iran has some reservations as they want oil sales to happen and this will require billions of dollars of credit to become a real entity. This will be the end of the reserve dollar as we know it, if the necessary credit lines can be established. This is why china is so important. China and Russia could deliver on the lines of credit, with some help from Germany and lesser amounts from the rest of the EU. If India and Pakistan join they would have to rely mostly on other countries for a line of credit, but the Eurasia people, as a whole have the people required, if only the credit can be formulated, in some kind of currency not involving the USD
The reserve dollar won't disappear, but it's power would be largely curtailed
Russia is trying to gain a foothold in the ME and replace the USA. Syria is already in the russian orbit and if Iran joins this is the start of a new era in the ME from military power to financial
The one saving grace for the USA. All of these countries want a piece of the pie and Russia and China both want to be the top dog. Internal rivalries may stop any developments from fruitition. Even Iran wants to be known as a world power
A currency basket is a portfolio of selected currencies with different weightings. A currency basket is commonly used to minimize the risk of currency fluctuations.
The renminbi is the official currency of the People's Republic of China ... The distinction between Renminbi and yuan is that Renminbi is the name of the currency and yuan refers to its primary unit. On 1 October 2016, the RMB became the first emerging market currency to be included in the IMF's special drawing rights basket, the basket of currencies used by the IMF (reserve currency).
Special drawing rights (currency code XDR also abbreviated SDR) are supplementary foreign-exchange reserve assets defined and maintained by the International Monetary Fund (IMF).The SDR is the unit of account for the IMF, and is not a currency per se. SDRs instead represent a claim to currency held by IMF member countries for which they may be exchanged. The SDR was created in 1969 to supplement a shortfall of preferred foreign-exchange reserve assets, namely gold and the U.S. dollar.
(The Russian ruble is not part of the reserve.)
.........………………......2018
US dollar...………....61.69%
Euro...……………......20.69%
Deutsche mark.,,,,,15.75%
Japanese yen...….....5.20%
Pound sterling........4.43%
French franc...…….. 3.5%
Chinese renminbi...1.89%
Canadian dollar......1.84%
Australian dollar.....1.62%
Swiss franc...…........0.15%
Dutch guilder..........0.32%
Other currencies.....2.48%
I've heard about the dollar getting replaced for many decades. Also heard Japan was gonna run us over in the 90's. And I hear China will do it any day now.
Couple things.
The dollar is the absolute worst currency out there except for all the other.
Japan and China have government run economies. Now, government folks are realy smart and stuff, but they always end up subsidizing waste and punishing productivity. It's just not a winning theory no matter what AOC and Warren and Sanders say.