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Reserve Currency -No Longer US Dollar?


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Is the US dollar based on oil? Gold? 

What is a "reserve currency?"

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As a Canadian, I record my transactions with a Canadian bank. Among Canadians, we settle our affairs in Cdn dollars. My bank has a stash of Cdn dollars to ensure that I'm good for my claim.

But I sometimes trade with foreigners. My Cdn bank keeps a stash of US dollars for such trades.

Apparently, my bank now needs a reserve of gold or roubles. WTF?

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I hadn’t heard about this.  I’m still kind of shaking my head about the fact that the federal government can freeze your bank accounts if they decide to.  And cancel your car insurance.

it was shortly after this that apparently there was some sort of emergency in our banking system and I think the banks closed early because they were running out of cash.  Or because of all the people withdrawing their cash(in response to the gov’s crazy move), the banks couldn’t conduct business concerning loans.  Or something like that.

The very next day in response, Trudeau lifted the Emergency Powers.  I’ll bet the banks had to make a change due to the unexpected consequences at the ATMs when the Emergency Powers Act was, uh, activated by Trudeau.  

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27 minutes ago, sharkman said:

1. shortly after this that apparently there was some sort of emergency in our banking system and I think the banks closed early because they were running out of cash. 

2.  Or something like that.

3  I’ll bet the banks had to make a change due to the unexpected consequences at the ATMs when the Emergency Powers Act was, uh, activated by Trudeau.  

1. Disinfo I think.  Somebody said this and when I got a cite it was a small outage at one bank.  If you want to help destabilize Canada's economy via bank runs, because the government arrested Tamara Lich and such -rightly or wrongly-you are wishing significant harm on us.  It's the equivalent of revolution to bring down our financial system because you don't like trudeau.

2. LOL.  "A bank run happened or should happen or something like that..."  

3. "Hmmm maybe helping destabilize Canada's banks will help Poilievre" is about the stupidest thing yet.

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Well my post is not disinfo, it really happened, all except for what the banks might have had to do in response.  I went to my bank just after the Emergency Powers had been rescinded, all 3 bank machines were out of cash mid day.  The line up to the tellers was a 1/2 hour.

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Okay, here’s a link to the incident with the Canadian banks.

https://fee.org/articles/did-justin-trudeau-s-financial-crackdown-really-spark-a-bank-run-in-canada/
 

Quote

 

…The announcement, however, may be having an unintended consequence. News reports say Canada’s banks mysteriously went offline following Freeland’s announcement.

“This week, five banks in Canada, the leading ones in the country, went offline out of the blue,” TechStory reported Thursday. “They faced a major outage of almost five hours blocking access to their primary functions. Online and mobile banking facilities were said to be out, along with access to e-transfer for the customers.”

 

 

Edited by sharkman
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Posted (edited)
On 4/4/2022 at 10:16 AM, sharkman said:

Perhaps you could come up with an alternate theory WRT August’s issue?  Stay on topic and all that…

Here's another view of "reserve currency":

a) the cash that an ATM can produce:

Travelling in Asia before the pandemic, I used ATMs that offered local currencies, and US dollars.

b) the coins/cash that you keep for a future trip

I keep a stash of euros/dollars for when I step off the plane

c) taxi rides / black market deals: Liquidity? In poor countries, I always had a few $5 Lincoln with me. But now, I have a few of those 10 arches. 

Edited by August1991
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Posted (edited)
On 4/4/2022 at 9:20 AM, sharkman said:

.. I’m still kind of shaking my head about the fact that the federal government can freeze your bank accounts if they decide to.  And cancel your car insurance.

....

Been there, done that.

The problem? The CRA bureaucrats never admit mistake, assume the cost. But you lose the money while they check.

=====

About 35% of people who file federal tax statements, pay no tax. IOW, About 1/3 of voters don't care about taxes. When a politician (Trudeau Jnr, Singh) promises more, it's not their money.

Edited by August1991
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15 hours ago, August1991 said:

Here's another view of "reserve currency":

a) the cash that an ATM can produce:

Travelling in Asia before the pandemic, I used ATMs that offered local currencies, and US dollars.

b) the coins/cash that you keep for a future trip

I keep a stash of euros/dollars for when I step off the plane

c) taxi rides / black market deals: Liquidity? In poor countries, I always had a few $5 Lincoln with me. But now, I have a few of those 10 arches. 

Your thread title intrigues me.  If countries are moving away from the US being a reserve currency, then US currency would drop in value.

Perhaps that’s why you carry “arches” now?  And what would a dropping US currency mean for our Canadian bucks?  
 

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On 4/7/2022 at 5:52 PM, sharkman said:

Your thread title intrigues me.  If countries are moving away from the US being a reserve currency, then US currency would drop in value.

Perhaps that’s why you carry “arches” now?  And what would a dropping US currency mean for our Canadian bucks?  
 

US dollars portray dead presidents - except Franklin. Dead white guys.

Euros portray, uh, arches. (As a West German once explained to me about DMs, maybe the person was born in Saxony.)

=====

At issue, ultimately, is what people keep in their wallet after travel, or use for a "deal". Or what they put under a mattress.

Nowadays, around the world, for this, people use mostly US dollars - a Franklin. Maybe, a green euro - with a bridge.  

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I have never held a Euro, only American and Mexican bucks.  Every now and then I hear talk about new digital currencies that many of the first world countries want to move to.  
So perhaps in the next few years carrying the right currency will be easier to do.

My wife collects coins, mostly Cdn and US.  I had forgotten we once had 50 cent and 1.00 coins in Canada.  These coins used to buy a restaurant meal.  I know it’s an accepted part of economic theory, but  i can’t help but wonder what the downside to inflation might be over time.

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  • 1 month later...
Posted (edited)
On 4/9/2022 at 12:45 PM, sharkman said:

I have never held a Euro, only American and Mexican bucks....

Mexican pesos? Euros?

=====

IME, in South America, they now prefer euros.

A single 500 euro pink is lighter than five 100s of Franklin.

===

To make my point plain: I like the brown Cdn 100 and pink Cdn 50. Plastic, easy to verify (see through). Increasingly, I use them abroad. I know that the foreign "taxi driver" will lose in transaction costs - but the driver knows I'm honest.

Reserve currency? This is what I mean. What people accept/hold while waiting for a better deal.

Keynes developed a theory and wrote a book about it, if you're curious.

Edited by August1991
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On 4/4/2022 at 4:20 PM, sharkman said:

I hadn’t heard about this.  I’m still kind of shaking my head about the fact that the federal government can freeze your bank accounts if they decide to.  And cancel your car insurance.

it was shortly after this that apparently there was some sort of emergency in our banking system and I think the banks closed early because they were running out of cash.  Or because of all the people withdrawing their cash(in response to the gov’s crazy move), the banks couldn’t conduct business concerning loans.  Or something like TriceLoans that.

The very next day in response, Trudeau lifted the Emergency Powers.  I’ll bet the banks had to make a change due to the unexpected consequences at the ATMs when the Emergency Powers Act was, uh, activated by Trudeau.  

I'm intrigued by your topic title. If countries stop using the US dollar as a reserve currency, the US dollar will lose value.

Edited by thomashall
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It's all a rigged scam.  FDRs America for instance bailed out all the lenders and did NOTHING to bail out the deposits of the average American.  The system is rigged.  Wall Street takes massive risks .... and yokels like GW Bush bail them out, claiming they had no choice.  But if WE make those same errors no one gives a damn.

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On 5/25/2022 at 9:13 AM, thomashall said:

I'm intrigued by your topic title. If countries stop using the US dollar as a reserve currency, the US dollar will lose value.

Relative to those currencies yes.  The issue for me is what happens when the US population figure out they are a banana republic and no better than Mexico.  The value of the US dollar involves that the USA is suppose to be a lawful nation with a stable political system.  What happens when that is no longer reality?  Well, I think it IS reality.  We have an FBI that is totally politicized and increasingly arrests without warrant.  We also had 3 elections stolen by massive cheating.  The federal election and 2 Georgia run offs.  

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