China Leads Charge Against USD

The BRICSIA alliance isn’t even bothering to conceal their intentions any longer:

China will be a pioneer leading the world into a new and innovative financial and monetary system, as global calls for an overhaul of the Bretton Woods system – which has been in place for 80 years – gain traction due to the US abuse of the dollar’s hegemony and its irresponsible policy, as well as a fragmenting global economy, Chinese and foreign scholars said.

The new financial system is envisioned to be one based on a diversified set of currencies rather than a single currency, they noted. It will be an open, inclusive system where the voices of emerging market economies would be better represented, and it will enable countries to join hands to promote global economic growth and financial stability.

The comments were made at the 2024 Tsinghua PBCSF Global Finance Forum in Hangzhou city in East China’s Zhejiang Province. The two-day event concluded on Tuesday. This year, the forum was themed “80 Years after Bretton Woods: Building an International Monetary and Financial System For All.”

Taking account of how the US has been weaponizing and abusing its dollar hegemony by imposing unilateral sanctions on other countries, attendees of the forum expressed hopes that a less dollar-centric system could be created from both a theoretical and pragmatic point of view. The Federal Reserve’s policies to deal with US inflation and a recession, which have had negative spillover effects on the world, have raised widespread concerns over an excessive reliance on a single currency.

The challenge being posed to Clown World’s ambitions to rule the world are multi-faceted indeed. And the pillars upon which Clown World rests are rapidly crumbling. I think it’s safe to assume that China will continue dumping its US Treasury holdings.