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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 386.87-0.1%4:00 PM EST
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To: TobagoJack who wrote (51782)6/28/2009 5:16:34 AM
From: elmatador  Read Replies (1) of 218159
 
The case to remove the USD: I buy equipment from Huawei and pay in USD.

I earn my money in Kwanza and deposit it in my bank. I go to my bank and say pay Huawei that amount of USD. Show them the contract I have with Huawei.

They get the paperwork done, and go to CB give my Kwanzas, get USD and wire it to Huawei in China.

I buy my services from Huawei too. (Those heavy construcion jobs you saw on the photos below.) This is paid, not in USD. It is paid in Kwanza. Huawei send me an invoice and I tell my bank to pay Huawei. But my contract states Kwanza, not USD.

Now Huawei has lots of Kwanzas in its bank here but cannot pay subcontractor who contract is USD.Huawei seeing his subcontratcor running out of money, asks a bank in HK to pay subcontractor UDS ending up with a debt in USD in HK.

Subcontractor has imported USD into Angola to buy those machines and mobilize for heavy construction. They now have USD and take those USD to pay the bank it loaned money to buy the machinery. US love that because people are working hard and US profits from the demand of USD they are printing.

But why the world of business has to deal away with this relic USD, is asking Lula?

His point being: Huawei accepts Kwanza for its services and equipment. Sonangol accepts RMB for its oil.
Trade moves goods. Trade exists to move goods and services not paper money.

Now if Belgium buys a truck load of diamonds and pays in €, Endiama the diamond company, sells € to CB here and get Kwanzas.

So at CB level it handles currencies but 'isolates' the world of business from the currencies juggling exercise.

for the countries with which there is big trade flows, it is much better to use local currencies rather than pays the US, to make a calculation using USD.
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