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From Libra to leave-ya: eBay, Visa, Stripe, PayPal, others flee Facebook's crypto-coin

Anonymous Coward
Anonymous Coward

I suspect that will end in not too many years from now, not only because Trump & cohorts have emptied all the reserves into their own pockets but also because the fundamentals under the rein of the dollar are being attacked as we speak, not always deliberately.

Key to USD control of world finance (and so of its own overrated value) is that it is the currency in which energy is traded, thus also prompting other governments to keep dollar holdings and so be tied to the health of the dollar - it's been an elegant and long running scam, a sort of long distance blackmail. There are now serious contenders on the horizon for that status, and the US problem is that those are not only beyond their control but also that the machinations of their current administration have put the country on a path away from where it could at least compete. Ironically, part of the US controls were vested in the UK whose EU membership gave it license to meddle with the EUR despite not being part of the currency group - Brexit thus ends that UK value for the US.

The discomfort with US control over other economies has been rising for decades, especially after a number of recessions which always seem to start in the US (it appears to be a default feature of Republican presidencies). Trump made this discomfort so high that it started efforts to disconnect, and some of that is already coming home to roost.

I would really NOT want to hold any assets rated in dollars when this becomes evident, and given that there is already a drain of foreign investment in the US I suspect I'm not the only one who sees this one coming. Even the Chinese are calmly and quietly reducing the amount of US debt they're holding, which suggests they deem the risk of loss higher than the risk of losing currency control - their little demonstration by leaving the CNY float for a day when Trump declared them a currency manipulator (pot, kettle, but I digress) clearly proved that they already have all the control they need externally.

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