Is the dollar entering a death spiral with regard to international trade? Brazil, China strike trade deal agreement to ditch the dollar.

 Thanks to Tim Edwards for the link!

via Fox

Brazil and China have reportedly struck a deal to ditch the U.S. dollar in favor of their own currencies in trade transactions. 

The deal, announced Wednesday, will enable China and Brazil to carry out trade and financial transactions directly, exchanging yuan for reais – or vice versa – rather than first converting their currencies to the U.S. dollar.  

The Brazilian Trade and Investment Promotion Agency (ApexBrasil) said the new arrangement is expected to "reduce costs" and "promote even greater bilateral trade and facilitate investment." 

China is Brazil’s largest trading partner, accounting for more than a fifth of all imports, followed by the United States, according to the latest figures. China is also Brazil’s largest export market, accounting for more than a third of all exports. 

Here 

This is the economic version of the Roman issue of barbarians at the gates.

I've said it once and I'll say it again.

So many of you cheered like idiots when they piled on sanction after sanction after sanction on Russia.

I warned of the unintended consequences.

I warned that any sensible leader of a country would take steps to ensure that what we did to Russia, we wouldn't be able to do with their country.

China isn't over and what's worse is that China isn't acting alone in this.

Other countries are wanting in on an alternative market/banking system because the actions on behalf of Ukraine were so draconian they feel like they have no choice.