How Long Will The US Dollar’s Dominance Last? | ZeroHedge
Authored by Simon Black via SovereignMan.com
Small Excerpt Below:
Both the United States and the US dollar have held this status for the last 80 years. And at the moment this is still the case.
History, however, is very clear on this point: wealth and power shift. Reserve currencies change. And it would be foolish to assume that this time is different.
Reserve currencies hold their status because the rest of the world has confidence– confidence in the soundness of the currency, confidence in the power and prestige of the country that issues it.
But let’s be honest: the rest of the world is probably not brimming with confidence in the United States right now.
They’re looking at this shameful, disgraceful catastrophe in Afghanistan and wondering, “Is this seriously the world’s dominant superpower?”
But it’s more than Afghanistan. It’s endless deficits. It’s ridiculous spending initiatives that pay people to stay home and NOT work. It’s rising inflation thanks to the continued erosion of the US dollar.
None of these inspires confidence.
It was nearly 1,000 years ago when foreign traders began looking for new options after they lost confidence in the solidus, and in the Byzantine government.
Today there are already international banks, multinational businesses, and foreign governments that are starting to diversify out of the US dollar.
This is a major change. It’s not something that will happen overnight; like the solidus debasement, it will happen gradually… then suddenly.
There will be small milestones and minor events that take place over a period of many years. A lot of it has already happened.
But the end result will be a sharp decline in the US dollar’s market share of global reserves. And for anyone holding US dollars, that’s going to mean a LOT more inflation.
One reply on “As Inflation Skyrockets in the US, Russia and Saudi Arabia Sign Agreement Ending the ‘Petrol Dollar’, Putting the US Dollar and Economy at Even Higher Risk”
I think this is a good thing. The various libertarian economists point out that the petrodollar blocks free market dollar reform and props up its price. When Trump talked about moving to gold that would end the petrodollar. When people talk of going to a Bitcoin economy the effect is the same. Mohammed bin Salman is an ally of Trump not a foe. To reform a currency you, by definition, crash the old currency but you have replaced it with the replacement currency.
The Austrian school teaches that you can’t actually export inflation but you can create real demand that props up the price. The process and theory is opposite but the effect is the same.
The Economic Ninja is perfectly right but any currency reform particularly, a return to gold and bitcoin or a full freely competing currency system, requires this. Any globalist deep state elite money system also needs this so its actually quite neutral. Particularly if you think, as I do, that gold and bitcoin are winning.
The Saudi Russia thing is also not new. The USA will not give the Saudis the weapons they want and need to destroy Iran and the Shia states. Too much risk of it falling into the wrong hands (except Biden just blew that all to hell.) Russia might, or at least it is pretending it will, share its second rate technology. There are major realignments happening. Some are very bad, some not so bad.
Note: This is based on two key assumptions: I don’t believe that Mohammed bin Salman had Jamal Khashoggi killed; I think Khashoggi is in jail somewhere. He was al Qaeda.
I also do not believe that Putin is the polonium poisoner, its someone on Putin’s left. Putin is a target too. Noticeably none of Putin’s leftwing rivals have been prisoned. Its a Russian deep state power player on the left.