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France lashes out against US dollar, calls for ‘rebalancing’ of world currencies

DA60

DA60

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'The French government wants to break the monopoly the dollar has on international transactions after the country’s largest bank, BNP Paribas, was slapped with a record $9 billion fine and a 1-year dollar trading ban.

Michel Sapin, the French finance minister, called for a “rebalancing” of the currencies used for global payments, saying the BNP Paribas case should “make us realize the necessity of using a variety of currencies” the Financial Times reports.

“We [Europeans] are selling to ourselves in dollars, for instance when we sell planes. Is that necessary? I don’t think so. I think a rebalancing is possible and necessary, not just regarding the euro, but also for the big currencies of the emerging countries, which account for more and more of global trade,” the finance minister told the FT at a conference over the weekend.

France wants to bring the euro to greater prominence in international trade. Sapin said he would raise the idea on Monday when he meets in Brussels with eurozone finance ministers.'

France lashes out against US dollar, calls for ?rebalancing? of world currencies ? RT Business



Is this the beginning of the end of the petrodollar?
 
I read recently that the IMF has been suggesting to several countries that the USD should be replaced with their Special Drawing Right (SDR) as a currency intermediary. This is a smart move for the IMF as it would give them unprecedented monetary powers but it would also mean the doom for the USD as the worlds reserve currency and ultimately may spell disaster for the USD and our economy.

This with several other countries now making trade agreements outside the USD I believe is telling. The threads for the USD are beginning to unravel. I believe it will be an every growing trend around the world. Our deficit spending and currency overextending that so many seem to not have an issue with is exactly why the USD is losing its position in the world market.

I admit that part of me cannot wait for the day when the USD tanks so that I can see the look on the faces of all those that believe government spending and monetary policies are sustainable and that our government could never overspend. Sadly however I have to hope that moment never happens as it would devastate a lot of innocent people.
 
DA60 said:
'The French government wants to break the monopoly the dollar has on international transactions after the country’s largest bank, BNP Paribas, was slapped with a record $9 billion fine and a 1-year dollar trading ban.

Michel Sapin, the French finance minister, called for a “rebalancing” of the currencies used for global payments, saying the BNP Paribas case should “make us realize the necessity of using a variety of currencies” the Financial Times reports.

“We [Europeans] are selling to ourselves in dollars, for instance when we sell planes. Is that necessary? I don’t think so. I think a rebalancing is possible and necessary, not just regarding the euro, but also for the big currencies of the emerging countries, which account for more and more of global trade,” the finance minister told the FT at a conference over the weekend.

France wants to bring the euro to greater prominence in international trade. Sapin said he would raise the idea on Monday when he meets in Brussels with eurozone finance ministers.'

France lashes out against US dollar, calls for ?rebalancing? of world currencies ? RT Business



Is this the beginning of the end of the petrodollar?
Click to expand...

The French have always had a problem with the general use of the dollar. De Gaulle popped Breton Woods at one point, which was fine.
And we must admit that the US has been printing an awful amount of cash, borrowing rather a lot of money and running an eye popping trade imbalance.
 
Summerwind said:
http://dealbook.nytimes.com/2014/06/30/bnp-paribas-pleads-guilty-in-sanctions-case/

I have no problem with push back against the dollar, that makes sense. However to suggest that BNP shouldn't be fined or that they didn't agree with the fines after pleading guilty, is to have one's head in a dark, damp, smelly place.
Click to expand...

Yeah, the two stories seem strangely intermixed. The dollar reserves story is an entirely different matter from BNP paribas admitting and being found guilty of illegal activities.

joG said:
-- And we must admit that the US has been printing an awful amount of cash --
Click to expand...

That simply makes it less worthwhile for other countries to hold dollars as a security when the reserves they hold start devaluing as more and more enter the system.
 
Infinite Chaos said:
Yeah, the two stories seem strangely ....
Click to expand...

They are intermuxed, because the French are always strongly national and mindful of appearances in these things and are furious that their bank has been pronounced criminal.
 
joG said:
They are intermuxed, because the French are always strongly national and mindful of appearances in these things and are furious that their bank has been pronounced criminal.
Click to expand...

Why are they not be furious that their bank has admitted to criminal behaviour and agreed to pay fines?

It's foolishness..
 
I do hope there is a rebalancing of world currencies, the US right now is being a dictator and forcing all other countries to bow down to our pro-tax banking laws, personally I hope the world uses the Swiss Franc as the reserve currency in the future.
 
joG said:
They are intermuxed, because the French are always strongly national and mindful of appearances in these things and are furious that their bank has been pronounced criminal.
Click to expand...

You truly are suffering from a comprehension disability, aren't you? BNP admitted guilt and agreed to the settlement. French may be nationalistic, but they aren't as ignorant apparently as wingnutters.
 
Baralis said:
I read recently that the IMF has been suggesting to several countries that the USD should be replaced with their Special Drawing Right (SDR) as a currency intermediary. This is a smart move for the IMF as it would give them unprecedented monetary powers but it would also mean the doom for the USD as the worlds reserve currency and ultimately may spell disaster for the USD and our economy.

This with several other countries now making trade agreements outside the USD I believe is telling. The threads for the USD are beginning to unravel. I believe it will be an every growing trend around the world. Our deficit spending and currency overextending that so many seem to not have an issue with is exactly why the USD is losing its position in the world market.

I admit that part of me cannot wait for the day when the USD tanks so that I can see the look on the faces of all those that believe government spending and monetary policies are sustainable and that our government could never overspend. Sadly however I have to hope that moment never happens as it would devastate a lot of innocent people.
Click to expand...


Yeah, ruining the lives of innocent people is worth being able to say "I told you so" to people who won't be listening. :roll:
 
Infinite Chaos said:
Why are they not be furious that their bank has admitted to criminal behaviour and agreed to pay fines?

It's foolishness..
Click to expand...

I saw this type of thing in France a lot. When they feel slighted, even when they know that they were at fault, they look for some tit for tat. Always.
 
Summerwind said:
You truly are suffering from a comprehension disability, aren't you? BNP admitted guilt and agreed to the settlement. French may be nationalistic, but they aren't as ignorant apparently as wingnutters.
Click to expand...

Of course they are not "as ignorant apparently as wingnutters", which one learns very quickly, when one works in a French company. But different cultures display specific behavior. Such behavior may or may not seem sensible to outsiders. But within the culture it is quite normal, accepted and usually works well. And here you see a demonstration of behavior I have seen over and over again. Honor is at stake and it is impossible to rile at the direct attack, as everyone knows who did it. So another item is taken up and tit is answered with tat.
 
This is bull**** from one end to another. BNP was the bank that outed the US subprime scandal, and this is payback. I can not believe that they actually got fined for doing business with freaking Cuba.. I fully understand that France and many others want to get rid of the US dollar, because of US abuses. This aint the first time this has happened... a few years ago, a Danish company buying Cuban cigars from Germany had their payment held by the US because for some reason the payment had to go through New York, and hence it "broke US sanctions".. wtf?
 
PeteEU said:
This is bull**** from one end to another. BNP was the bank that outed the US subprime scandal, and this is payback. I can not believe that they actually got fined for doing business with freaking Cuba.. I fully understand that France and many others want to get rid of the US dollar, because of US abuses. This aint the first time this has happened... a few years ago, a Danish company buying Cuban cigars from Germany had their payment held by the US because for some reason the payment had to go through New York, and hence it "broke US sanctions".. wtf?
Click to expand...
Its a fact that every Dollar transaction, no matter how small, goes through NY for processing, even if done by foreign banks (bank to bank international transfers are not done directly but have to go through another bank called correspondence banks). Being an expat and talking with my bankers confirms this.
 
DA60 said:
'The French government wants to break the monopoly the dollar has on international transactions after the country’s largest bank, BNP Paribas, was slapped with a record $9 billion fine and a 1-year dollar trading ban.

Michel Sapin, the French finance minister, called for a “rebalancing” of the currencies used for global payments, saying the BNP Paribas case should “make us realize the necessity of using a variety of currencies” the Financial Times reports.

“We [Europeans] are selling to ourselves in dollars, for instance when we sell planes. Is that necessary? I don’t think so. I think a rebalancing is possible and necessary, not just regarding the euro, but also for the big currencies of the emerging countries, which account for more and more of global trade,” the finance minister told the FT at a conference over the weekend.

France wants to bring the euro to greater prominence in international trade. Sapin said he would raise the idea on Monday when he meets in Brussels with eurozone finance ministers.'

France lashes out against US dollar, calls for ?rebalancing? of world currencies ? RT Business



Is this the beginning of the end of the petrodollar?
Click to expand...
Click to expand...




If you have any solid proof that it is, let's see it.

The clock is ticking.




I predict that you won't come up with anything.

It's easy for anyone to run their mouth.

Backing those wild statements up with actual facts is another story.
 
PoS said:
Its a fact that every Dollar transaction, no matter how small, goes through NY for processing, even if done by foreign banks (bank to bank international transfers are not done directly but have to go through another bank called correspondence banks). Being an expat and talking with my bankers confirms this.
Click to expand...

And that is the problem. Trading with Cuba in France, Germany, Spain, Denmark and most other countries is not illegal and yet we are considered terrorists by the US government if we do so with dollars? Come on..
 
joG said:
I saw this type of thing in France a lot. When they feel slighted, even when they know that they were at fault, they look for some tit for tat. Always.
Click to expand...

You see that in all nations lol. It is human nature. Hell this whole case is basically payback for the French outing the sub-prime scandal in the first place.
 
No one is going to back the euro in the shambles that it is in right now as a world currency. you can go anywhere and they will take dollars no problem.
good luck doing that with the euro.

the US economy is to large for another currency to take over. i do say we need a better monitary policy though. this borrow spend is at it's peak we can no longer
afford to do this. which means the US government needs to get rid of a few of these departments and send the power back to the states.
where it should belong to begin with.
 
Just a reminder of history...

BNP Freezes $2.2 Billion of Funds Over Subprime.

BNP Paribas, the eurozone's second biggest bank by market capitalisation, said the subprime crisis was preventing it from calculating the value of the asset-backed securities funds and barred investors from redeeming cash from them.
Click to expand...

I remember the day, when they came out with this comment.. it sent shock waves through the financial world and is arguably the "outing" of the scale of the sub prime scandal.

On 1. October 2007 the second shock hit when UBS... another bank fined by the US... announced massive losses due to US sub-prime investments.

Half a year after BNP came with that comment, the US financial market was on its knees and being bailed out.
 
PeteEU said:
You see that in all nations lol. It is human nature. Hell this whole case is basically payback for the French outing the sub-prime scandal in the first place.
Click to expand...

Maybe you would like to explain the outing of the sub prime scandal? You mean that French banks didn't do their due diligence, when they put the money of their shareholders on line? There actually was some of that, but the Germans were much worse offenders. Or was the sub prime debt you mean the Greek public debt? It is true that the due diligence was not done there either and the French did know. But that was not only the French either. That was the Bundesbank and the EU Commission primarily.
 
shrubnose said:
If you have any solid proof that it is, let's see it.

The clock is ticking.




I predict that you won't come up with anything.

It's easy for anyone to run their mouth.

Backing those wild statements up with actual facts is another story.
Click to expand...

What the heck are you talking about...I simply asked a question?
 
joG said:
Maybe you would like to explain the outing of the sub prime scandal? You mean that French banks didn't do their due diligence, when they put the money of their shareholders on line? There actually was some of that, but the Germans were much worse offenders. Or was the sub prime debt you mean the Greek public debt? It is true that the due diligence was not done there either and the French did know. But that was not only the French either. That was the Bundesbank and the EU Commission primarily.
Click to expand...

As in the first major bank coming out and saying the truth... look above.
 
joG said:
Truth about what?
Click to expand...

That banks were packaging up crappy loans that would never be repaid and selling them amongst each other to such an incredible degree that they were all trading in Monopoly money, essentially, and basing their asset reports on giant piles of Monopoly money. And using those asset lists as a basis for more lending.

and thanks to some wonderful deregulating, they were allowed to substitute your actual savings account dollars with Monopoly money if **** hit the fan. So the people they owed Monopoly money to would get your dollars in a bankruptcy, and you would get bailed out by the FDIC. If the FDIC had money, anyway, which it didn't.
 
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