agreed
@adowling, it is something I remain a little worried about . A number of authors on zero hedge , a leading libertarian Us website for financial analysis have been discussing the likelihood that the world will splinter into a multi polar world for some time ( pretty much since the invasion of ukraine by Russia began and the wests intent to wage a proxy war with Russia ) and the signs are becoming increasingly clearer we are moving in that direction .
Obviously this a much broader topic than is probably fit to discuss in detail on a gln forum as the issues here are very complex. Argentina has made plenty noises about wanting to get closer to China with the belt and road initiative and being a socialist government their natural inclination is to look to China . Of course the news in recent days of Briics aligning together is also concerning ( Brazil , Russia , India, Iran, China, Saudi Arabia ) and more evidence of this new multi polar order emerging where Us dominance is a thing of the past .
Very likely the U.S. dollar is now on a definite path to lose its reserve currency status and petro dollar status which really assured its status as the worlds reserve currency. This is likely now all but gone with Saudi’s agreeing to write oil sales in Chinese yuan in recent weeks . This could mean very rocky road for the US ahead as it’s ability to get cheap money in the form of lower interest rates and a strong currency that has perpetually allowed it to run what is called “ twin deficits” in macro economic speak , which means an ability to run large balance of payments deficits and large budget deficits simultaneously which basically funds the military industrial complex in the US . Becoming a complete banana republic would be likely if any other country tried to run equivalent deficits of the magnitude the Us has . So yes the world is becoming a more uncertain place and how ultimately that affects Argentina and Galan I remain unsure .
I am hoping the Us makes a move to extend to Argentina the same status as other free trade agreement countries like Canada and Australia , so Argentine exports also receive favored status under the Inflation Reduction Act . Given the shortage of lithium resources in the Us and that the Us unlike China has no artisanal lepidolite industry, this would seem a very wise move by the Us , especially when until recent times there was a pretty good relationship between the Us and Argentina and the Us needs to move to neutralize the growing influence of China in South America .
(20min delay)