dualstow wrote: ↑Wed Apr 02, 2025 1:13 pm
I was starting to get the feeling that Seajay is secretly
Mohamed El-Erian (ME-E) but today I was reading some FT clippings and there was one on gold in which ME-E was talking about the erosion of the dollar, but added that there is nothing and no one else who can nor who dares to replace the dollar. He stated that Russia’s clunky workaround after being kicked off
SWIFT in 2022 is not something that is going to replace
SWIFT or attract other nations.
Trumps tariffs are driving a shift away from SWIFT. For too long America has had the ability to export inflation, pays its workers higher wages than elsewhere, has energy at lower prices, equalization will be good. As part of that more will opt to swap Dollars for gold and use alternative international settlement methods to SWIFT - given that the US has weaponized SWIFT.
Presently the choice of alternatives are more direct between trading partners, combined gold and domestic currencies reserves. More however may adopt BRICS-PAY as/when more start commonly using that. I suspect the EU will also come up with its own separate system.
The decline of NATO, the US's ability to export inflation, equalized tariffs ... is generally a negative for Americans. Getting to that via a trade war is also a negative. Wont be the end of the Dollar, rather just a inclination towards recent 65% US share of global market cap declining perhaps down to 25%, as per the 1970's.
We'll soon see what level Trump is initiating a trade war at, if blanket/general I suspect it wont be too long before the EU responds with a activation of its Anti-Coercion Instrument
https://trade.ec.europa.eu/access-to-ma ... instrument - that its never invoked before.