/biz/ - Business & Finance

>>54487594
>Unless they massively expanded consumption over the small amount of time that interest rates were retardedly low (again, how will fleeing to the Yuan help them as the difference is fairly marginal in rates) then I fail to see how that's a long term issue.

Where did I say they were fleeing to the yuan? Russia is already selling oil for rupees and BRICS are trying to build a currency basket that cannot be weaponised by one single nation. And you are lying in my face about the "small amount of time". Interest rates have been almost 0% from 2009 to 2016. That had never been the case before. Then they increased interest rates which caused problems in late 2019. During covid you had almost 0% again PLUS a shutdown of a large portion of the world economy, meaning poor countries were double fucked.

You are right in the fact that there are still all the issues arising from a system with debt, fractional reserve banking and an increasing money supply, but you ignore the fact that "fleeing to the yuan" or to a different currency has the advantage of evading US sanctions. It is always better to be the one controlling the reserve currency.

IF (!) the BRICS countries succeed in establishing a second reserve currency, the US will lose a massive amount of political power.