USD's Reserve Status, the Eurodollar System, and International Trade ( w/ Lyn Alden & Hugh Hendry ) - burst 06


Out there. Now that there are signs that network effect is beginning to fray so for example. If you look at Trade between russia and europe or russia and china over the past two three four years. It actually is beginning to de-dollarize So we're starting to see a partially it's going up in euros. So in between china and russia There the trade up. The percentage of their trade it's happening in euros is increasing and raw seeing that of course need russia and europe But then in addition we're seeing some increase in their local crunchies as well as what we're seeing is some degree of decentralisation. Were the dollar still plays an important role in in global energy markets. But we are starting to see some alternate payment systems around the margins and so Basically have had multiple decades in a row of security trade deficits in the united states. They actually have tools that they end this any time but instead they've kind of patch way. The system were sort of well. For example they can gauge some of the same mercantilist process other countries. Vacant for example move their currency lower whenever they wished you. And that's my that's my my principal point. The the the hegemony is like the mercantilists came in. And they like like. I need are but they. They cut cut the hair of trump's the the us is in a bind in a world where everyone has fiat currency in a world where everyone is is switzerland

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