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Israel Adds Yuan to $206B Reserves in ‘Philosophy’ Change

5 points by 0xedb 5y ago

gigatexal 5y ago
Makes sense. The dollar can’t stay the dominant currency forever.
- DevKoala 5y ago
  This isn’t about longevity but the history of the dollar in the past 3 years. Too many dollars printed and dollar deposits being confiscated due to political differences weakened the dollar as a store of value.
  - gigatexal 5y ago
    You had me nodding in agreement until “confiscated due to political differences”. Surely you don’t think the Russian invasion of Ukraine is just a spat between two neighbors?
    - DevKoala 5y ago
      Regardless of the moral angle, it means that the USA financial system does not remain impartial over political disputes. This has nothing to do with what I think about the war. Clearly, plenty of other international asset managers agree that there is a level of risk associated in letting the USA hold your assets when they can sanction you due to political disagreements. For example a sanction could befallen on Israel over Palestine in the future, or over China if they do invade Taiwan. That is what I mean.
      - gigatexal 4y ago
        Sanctions have always been a thing. Confiscation of funds are an escalation sure but they are the logical next step when you’re part of a banking system that goes through the federal reserve. The fed though is a good place to park your good or money. Allies of the US who park their money with the fed are assured it will be there, it will remain liquid, and any foreign actor that tries to take it by force will meet the US military which until tested seems to be the best in the world.
        DevKoala 4y ago
        I understand that for the USA and allies, the fed is the best place to park your money, but some allies such as Israel in this case are trying to remain neutral when it comes to financial systems. My understanding is that soon an economy in which the US doesn’t participate will form among nations such as Russia/China/Brazil. I don’t know what will be the store of value in this economy, maybe the currency of one of those nations, maybe gold, or crypto. Israel is just trying to get ahead.
verdverm 5y ago
> Canadian, Australian, Japanese currencies also added to basket Sounds like diversification, the interesting part would be the % allocation of each, which I'm not sure is pointed out beyond the pay wall...

5 points by 0xedb 5y ago

gigatexal 5y ago

Makes sense. The dollar can’t stay the dominant currency forever.

DevKoala 5y ago
This isn’t about longevity but the history of the dollar in the past 3 years. Too many dollars printed and dollar deposits being confiscated due to political differences weakened the dollar as a store of value.
- gigatexal 5y ago
  You had me nodding in agreement until “confiscated due to political differences”. Surely you don’t think the Russian invasion of Ukraine is just a spat between two neighbors?
  - DevKoala 5y ago
    Regardless of the moral angle, it means that the USA financial system does not remain impartial over political disputes. This has nothing to do with what I think about the war. Clearly, plenty of other international asset managers agree that there is a level of risk associated in letting the USA hold your assets when they can sanction you due to political disagreements. For example a sanction could befallen on Israel over Palestine in the future, or over China if they do invade Taiwan. That is what I mean.
    - gigatexal 4y ago
      Sanctions have always been a thing. Confiscation of funds are an escalation sure but they are the logical next step when you’re part of a banking system that goes through the federal reserve. The fed though is a good place to park your good or money. Allies of the US who park their money with the fed are assured it will be there, it will remain liquid, and any foreign actor that tries to take it by force will meet the US military which until tested seems to be the best in the world.
      - DevKoala 4y ago
        I understand that for the USA and allies, the fed is the best place to park your money, but some allies such as Israel in this case are trying to remain neutral when it comes to financial systems. My understanding is that soon an economy in which the US doesn’t participate will form among nations such as Russia/China/Brazil. I don’t know what will be the store of value in this economy, maybe the currency of one of those nations, maybe gold, or crypto. Israel is just trying to get ahead.

verdverm 5y ago

> Canadian, Australian, Japanese currencies also added to basket Sounds like diversification, the interesting part would be the % allocation of each, which I'm not sure is pointed out beyond the pay wall...