Canada just signed a deal with China cutting the US out of the loop. There are similar deals going on around the globe.
Oil Drops over 30% since summer, now what?
- Thread starter NoTrespassing
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Canada just signed a deal with China cutting the US out of the loop. There are similar deals going on around the globe.
OP
NoTrespassing
Veteran Member
You claim the US dollar has already lost "reserve currency" status. Do you have a link to a credible source claiming the same?
Reserve currency - Wikipedia, the free encyclopedia
According to Wiki, in quarter 2 of 2014 the US dollar was held at a rate of 60.7%.
The United States dollar is the most widely held currency in the Allocated Reserves today. Throughout the last decade, an average of two thirds of the total Allocated foreign exchange reserves of countries have been in US dollars. For this reason, the US dollar is said to have "reserve-currency status", making it somewhat easier for the United States to run higher trade deficits with greatly postponed economic impact or even postponing a currency crisis. Central bank reserves held in dollar-denominated debt, however, are small compared to private holdings of such debt. In the event that non-United States holders of dollar-denominated assets decided to shift holdings to assets denominated in other currencies, there could be serious consequences for the US economy. Changes of this kind are rare, and typically change takes place gradually over time; the markets involved adjust accordingly.[20]
However, the dollar remains the favorite reserve currency because it has stability along with assets such as United States Treasury security that have both scale and liquidity.[21]
US dollar dominant position in global reserves is very much challenged currently, because of the growing share of unallocated reserves, and because of the doubt regarding dollar stability in the long term.[22][23][24][25][26] However, in the aftermath of the financial crisis, the dollar’s share in the world’s foreign-exchange trades rose slightly from 85% in 2010 to 87% in 2013.[27]
The dollar's role as the undisputed reserve currency of the world allows the United States to impose unilateral sanctions against actions performed between other countries, for example the American fine against BNP Paribas for violations of U.S. sanctions that were not laws of France or the other countries involved in the transactions.[28] In 2014 Beijing and Moscow signed a 150 billion yuan central bank liquidity swap line agreement to get around American sanctions on their behaviors.[29]
OP
NoTrespassing
Veteran Member
That's nice but as of quarter 2, 2014, according to wiki. Canadian dollars were only held at a rate of 2% when compared to all currency held by official currency exchange reserves. Maybe it will tick up after the deal but that doesn't mean the US dollar has lost reserve status world wide.
buckeyefarmer
Epic Contributor
It's extending the payback period for my geothermal system.
MinnesotaEric
Super Member
Ask yourself in what currency is the oil between Canada and China trading in on energy markets?
Answer? dollars.
US Federal Reserve dollars.
In God we trust.
As for Canada their average personal debt to personal income ratio is 57% higher than America and their housing is a super-duper bubbly 47% higher than America and Canada is getting nailed in the chops right now with lower commodity prices since it is a major resource exporter. Canada is facing some real financial problems going forward considering net demand models suggest falling demand for its resources going forward, Canadians will need to reconcile making less money in the future.
I'll buy their bonds with both hands if they fall to double digit yields.
Ask yourself in what currency is the oil between Canada and China trading in on energy markets?
Answer? dollars.
US Federal Reserve dollars.
In God we trust.
As for Canada their average personal debt to personal income ratio is 57% higher than America and their housing is a super-duper bubbly 47% higher than America and Canada is getting nailed in the chops right now with lower commodity prices since it is a major resource exporter. Canada is facing some real financial problems going forward considering net demand models suggest falling demand for its resources going forward, Canadians will need to reconcile making less money in the future.
I'll buy their bonds with both hands if they fall to double digit yields.
No sir. That was exactly the point of the legislation.
MinnesotaEric
Super Member
Canada can do all the trading it wants out of NGX, but notice where all the points of delivery are.
The only people trading in Loonies are the Cannooks themselves.
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wroughtn_harv
Super Member
Regular last night in Wylie, $2.19. Diesel was $2.99. Everyone is walking around clapping their hands in joy. I imagine Houston is in a state of shock.
MinnesotaEric
Super Member
People are already using less fuel as the population ages. We have an aging population that is putting more money into their homes than into other discretionary things, while creating shedloads of part-time McJobs so as to avoid paying healthcare, thereby lowering younger workers incomes, delaying their own family and house formation while telling the immigrant workers we desperately need to support our economy that we don't want them. In a few years, we'll see the boomer generation get stuck in that big house nobody wants anymore and we'll see yet another housing crash as housing falls to mean again around the actual cost of building. The boom will be building elderly living and assisted living as people move from 4,000 sq ft McMansions to 2500 sq. ft Townhomes, to 300 sq ft nursing homes to 20 sq ft burial plots.
