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Warren Buffett: "There could be... Things happen in the United States that... make us want to own a lot of other currencies." (www.reuters.com)

submitted 2 days ago by [email protected] to c/[email protected]

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[–] [email protected] 1 points 2 days ago (1 children)

If the EU had it just a bit together, it would flourish both economically and prestige. The entire world is looking desperately for a reserve currency, for a place where to invest or even just to go and so a master or doctoral work... and yet Germany decided to go for self-harm and censure, north of Germany all bellicose, the south of it all lost after the lost of leadership and Ursula all authoritarian... let us no mention disregarding decades of support from the oppressed in the middle east and full on board with the US policies now.

Without doing nothing the EU would had become today the beacon whether a Chinese merchant, an Argentinian industrialist or an Angolan PhD candidate, instead... here we are... So back to Buffett, true, other currencies are more desirable but no one are posed to massively stand out for now.

[–] [email protected] 1 points 2 days ago (1 children)

Seems like China is best positioned to capitalize on the collapse of confidence in the US as the global reserve. It's the only major power that can guarantee economic growth and stability going forward.

[–] [email protected] 2 points 2 days ago (1 children)

In Asia it already is... even Japan and S Korea start to think so. Countries like Singapore, Vietnam, Malaysia etc had realized that years ago.

In the West, we still with the anti-China propaganda that the US/UK had invested so much in fomenting. Countries in LATAM and Africa... or even Spain are like Japan now... highly considering jumping ship... or, at least, soaking their toes there. The west media still at full steam with anti-china rhetoric but less and less people will be buying that in the coming months, let alone, years.

Now, unless China comes with a new currency scheme (more internationalized, backed in gold, or other mechanism) I don´t see flocking there yet... confidence with money takes time. When the Spanish and British empires collapsed, their currencies remained long passed the empire.

[–] [email protected] 1 points 2 days ago (1 children)

I don't expect that China would want their currency to necessarily become the reserve since it would mean it would have to be freely convertible. However, digital RMB cross-border settlement system is now connected to ten ASEAN and six Middle Eastern countries, potentially bypassing the SWIFT system for about 38% of global trade. I expect, China will use the drop in demand for US currency to urge further dedollarization.

[–] [email protected] 2 points 2 days ago (1 children)

True! It is a mystery the intentions of China regarding the currency. Slowly but steadily disposing of their dollars but nothing mayor in wanting to replace it either... probably a good move not to put wood in the fire. Europe missing the chance of a lifetime meanwhile!

[–] [email protected] 1 points 2 days ago (1 children)

The EU’s seizure of Russian foreign assets, without legal justification, isn't helping either. By unilaterally appropriating these holdings, the bloc has set a precedent that any nation outside the West would reasonably question: what assurances exist that the EU wouldn’t replicate this tactic against their assets in the event of political conflict?

https://www.reuters.com/business/finance/europe-hand-billions-frozen-russian-cash-western-investors-sources-say-2025-05-02/

[–] [email protected] 2 points 2 days ago

Don´t get me started with the assets seizure (and interest straight robbery), let alone banning apolitical players just for being born within the wrong coordinates. The harm here will be felt for years to come and in the hundreds of billions just for a posture thought by a handful of heads in Washington and Berlin that actually could care less for their own economies, let alone Ukrainians. Switzerland was rapid to stop that and already taking some of the funding usually would have gone to the EU... bu the eyes for capital is looking toward Asia.