Disliked{quote} The issue is businesses and individuals will still prefer dollars unless highly motivated (read are forced at gunpoint) to choose a new currency. The Euro smoothly replaced a more complex European currency system. BRICS currency is a more complex replacement, with higher risk. {image} If more than 80% of global debt obligations and global trade are in USD, then in what currency will global creditors insist to be paid? As it now, USD is the denominator, it is also the most liquid market/currency. In truth, most other currencies behave as...Ignored
Thank you Pat, this is interesting. I was thinking like this: My local department store (which sells everything I need), is in a position to charge a lot for it's products, because it is the only 'one stop shop' in town. People will eventually be happy to suffer some inconvenience by shopping at a multitude of small shops for much less, because the small shops have less overheads, so can stock items at a lower price. Even the small shops start to trade with each other. Eventually, the big dept store feels this loss of income and so has to lower it's prices to become competitive once more.
Does that analogy make sense? I see things in a simple way like this, but that's why I don't get paid the big dollars... hahaha
I am neither brave nor stupid...I am just a part time trader
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