On: Goldman warns on inflation threat to dollar as reserve currency

[sirmoveon]

What do you think of China and Rusia in talks to trade oil in other currencies? How significant is their share of the market?

[jb775 → sirmoveon]

Russia's oil reserves are a drop in the bucket compared to middle east, and more expensive to extract. Saudi Arabia could simply ramp up production to drive prices down globally and make it not worth the effort. Also, US has leverage over China bc they buy all China's cheap crap.

The headaches and downsides aren't worth it, and any "talks" are likely just game-theory pokes at the US.

[blaser-waffle → jb775]

"Perception is reality", and it's super true in investing. It's in Russia's and China's (and India's, and others) to weaken the dollar and the US' role in global hegemony.

To that end you keep stoking the fire, keep raising the question.

[nickff → sirmoveon]

China and Russia are both known to manipulate their currencies much more than the USA.

USD's most credible rival as a global currency is the Euro, because no individual government is able to devalue it.

[selectodude → nickff]

USD also has bond yield and access to the largest economy in the world built into it. It's more difficult to spend your Euros.

[effie → nickff]

> "China and Russia are both known to manipulate their currencies much more than the USA."

What do they do to "manipulate their currency"? Does quantitative easing qualify?

[icelancer → effie]

"How easy is it to buy and sell other currencies in China compared to the United States?" is a good start to answering this question.