@JekyllnHyde There go all the social programs, education aid, SS, medicare....

@JekyllnHyde

Not Uncle Sam, us!

“Give me your tired dollars, your poor investments, your huddled savings yearning to breathe free, the wretched refuse of no longer useful cash on your teeming shores -- you foreign scum, Send these, the homeless dollars, tempest-tossed to me, I lift my lamp beside the golden door!

Wire transfers, cashiers checks and of course cash, gladly accepted”

@Cassiodorus say that it is the End of Civilization. Like Obama claimed that letting the six biggest banks fail would destroy the entire banking system instead of just destroying the financial elite. So the homeowners were sacrificed on the altar of Jamie Dimon's bonus.

I rather suspect that dollar-denominated assets will retain their value anyway. Nobody really wants there to be a dollar panic, which would ruin the whole of the global economy. The point appears to be that Europe and Asia do not want to lose further value on all the effort they've put into covering their dollar-denominated assets. At some later point, then, when collapse seems imminent, they will probably threaten a dollar panic.

@Pluto's Republic

...with their their newly minted Cross-border Interbank Payment System or CIPS. It can ramp up for any nations that would like to trade outside the dollar and SWIFT by using the Yuan as their reserve currency. Trades with the US would still require dollars, but hegemony would have no reason to reach into the Eastern hemisphere.

The passage below is excerpted from Foreign Policy magazine. It's study how the US will be dealing with the New-new world order. I marvel that the authors seem to have no idea what they sound like. They've been wallowing in their self-important bubble for waaay too long.

Too Big to Sanction

The RMB has already begun making its mark outside of China. It is becoming a currency of choice for several industries, including the Australian mining and Russian oil sectors: In 2015, the Russian gas giant Gazprom, under U.S. and EU sanctions for Moscow’s support of pro-Russian separatists in Ukraine, began shipping oil to China via RMB transactions — coinciding with a larger shift by Moscow to move away from the dollar and the Western financial system. And Australian mining companies have found that handling transactions in RMB with their Chinese counterparts gives them a competitive advantage over their global rivals.

US: The Horror

Prior to the Iran nuclear deal, the EU restricted Iranian financial institutions’ use of SWIFT, greatly limiting their access to much of the world’s financial networks. CIPS, created by China in 2015, serves as a SWIFT alternative that processes global RMB transactions. Just several dozen financial institutions currently use CIPS — mostly in China — but CIPS could become the payments system of choice for human rights violators, nations with sanctioned companies, and Western-designated terrorist organizations.

Beligerent US Response

If Beijing resists dialogue, the West should use international forums like the U.N. Security Council, the G-20, and the World Economic Forum to tie China to the very entities using the RMB for money laundering, terrorist financing, or other violations of international law. A “state sponsor of terrorism” or “blood money” tag is not in China’s best interest.A “state sponsor of terrorism” or “blood money” tag is not in China’s best interest. If there’s a unified effort, China-led systems like CIPS could lose credibility before they even have a chance to get off the ground. Still, achieving this coordination in the short term is unlikely. Meanwhile, the RMB will continue to grow more and more popular.

Capitulation and Colonial Bluster

The overall weakening of U.S. financial sanctions is inevitable. The United States needs to prepare for a world in which the threat of Western financial sanctions begins to ring hollow. As a first step, the United States should utilize the annual bilateral Strategic and Economic Dialogue’s economic track as an opportunity to raise concerns with China about potential undermining of U.S. policy objectives on sanctions. While a common understanding on the issue is unlikely, there should at least be an agreement on regular consultations between the two countries on sanctions.