Yesterday we spent some time discussing the decline of US Dollar hegemony, as the world’s sole reserve currency. We got into the implications that decline holds for domestic but even more for foreign policy. We also noted Alasdair Macleod’s contention that the slide of the dollar could accelerate more quickly than many expect, as more countries shift to alternatives to the dollar to settle trade payments—leading to less need to maintain outsized reserves of dollars. Cf.
Can someone give an example of what this would mean for person. Will there be higher inflation, depressionary type recession, higher prices, lower prices, etc. sorry if this is stupid question. Thanks.
Here is an interesting article - I got to read it once but now it's behind a paywall. Argentina appears to have a dollar shortage. Not sure how this slots in with everything but I thought it significant...
Look at the bright side-we are facing a domestic catastrophe. The dollar will gain in value-at least domestically. Our economy is in lousy shape. Bankruptcies are multiplying. The stock market is pure Ponzi, and as it is not going up it can only go down-drastically. With our current private and public debt dollars will be in demand. Powell is very concerned . The effect of this on Europe and the world-who cares! Washington is in for a dose of reality. As for the Ukraine, we will have our victory, just like Afghanistan.
We all see the freight train heading straight at us and yet our leaders remain clueless! The smartest people in the room are dumber than a bag of rocks, you just can’t make this stuff up!!
Can someone give an example of what this would mean for person. Will there be higher inflation, depressionary type recession, higher prices, lower prices, etc. sorry if this is stupid question. Thanks.
Here is an interesting article - I got to read it once but now it's behind a paywall. Argentina appears to have a dollar shortage. Not sure how this slots in with everything but I thought it significant...
https://www.centralbanking.com/central-banks/monetary-policy/7958557/argentina-raises-rates-300bp-and-restricts-access-to-dollars
Look at the bright side-we are facing a domestic catastrophe. The dollar will gain in value-at least domestically. Our economy is in lousy shape. Bankruptcies are multiplying. The stock market is pure Ponzi, and as it is not going up it can only go down-drastically. With our current private and public debt dollars will be in demand. Powell is very concerned . The effect of this on Europe and the world-who cares! Washington is in for a dose of reality. As for the Ukraine, we will have our victory, just like Afghanistan.
We all see the freight train heading straight at us and yet our leaders remain clueless! The smartest people in the room are dumber than a bag of rocks, you just can’t make this stuff up!!
Reasons for de-dollarization:
1. Hatred of US / local politics
2. Property Rights
3. U.S. Inflation
This article also covers Diesen’s points and your post, FWIW:
https://www.zerohedge.com/geopolitical/its-defund-global-police-moment-jen-says-de-dollarization-happening-stunning-pace
“How did you go bankrupt?"
“Two ways. Gradually, then suddenly.”
Ernest Hemingway, The Sun Also Rises