What Happens When The World No Longer Wants, Or Needs US Dollars?
Guest Post by Dennis Miller at Miller On The Money
Chuck Butler and I recently discussed how government deficit spending, and monetizing the debt has caused a worldwide awakening. Inflation is killing the value of the dollar, and our creditors understand that.
But wait, there’s more! The interview continues….
DENNIS: BRICS used to stand for Brazil, Russia, India, China and South Africa. Global Research reports, Doomsday for the Buck? A Reserve Currency Is No Longer Needed.
Quoting Paul Craig Roberts:
“It was Washington’s economic sanctions against Russia, the theft of Russia’s central bank reserves, and the theft of Venezuela’s gold, not the conflict in Ukraine, that weaponized the US dollar and resulted in global realignment.
…. The US dollar is used as world money to settle imbalances in international trade, but the sanctions woke the world up to the risks of using the dollar.
Consequently, the BRICS suddenly expanded, (adding) Argentina, Egypt, Iran, Saudi Arabia, and the United Arab Emirates. The organization now contains essentially the entirety of world oil production and 40-45% of World GDP.
…. Saudi Arabia announced the end of the petrodollar when it began accepting payment for oil in other currencies. The BRICS are working out how to carry on trade among themselves without use of the US dollar, which in effect brings to an end the role of the dollar as world reserve currency.
…. What this means…is that the US will begin having financing problems for its large budget and trade deficits. As long as the dollar was the world money, foreign central banks kept their reserves in US Treasury debt.
…. The situation is changing. If…about half of the world’s population and 40-45% of world GDP cease using the dollar, the foreign central bank market for US debt shrinks considerably. Having offshored its manufacturing, the US is import-dependent.
Declining use of the dollar means a declining supply of customers for US debt, which means pressure on the dollar’s exchange value and the prospect of rising inflation from rising prices of imports.”
RT adds fuel to the fire:
“In terms of oil reserves, BRICS will also control nearly half of the world’s total, 719.5 billion barrels out of 1.6 trillion. If Venezuela, which has recently applied for membership, is accepted into its ranks, the group’s control will be even greater – around 65.4%. In comparison, the G7 group …. (The US, UK, Germany, Italy, Canada, France, and Japan) controls only 3.9% of known crude reserves.”
This is overwhelming; let’s break it down.
Congress, the people who control the Resident, the banksters.
They know it’s going to die. Which is why they are so intent on doing things like laundering billions through Ukraine, so they can get their hard assets before the collapse.
Tic, tic, tic, boom! And just like that comes the greater depression.
when the grain shipments from egypt to rome ceased, was the result describable as a “depression”?
My guess, to answer the headline, is
All those physical and digital dollars might come flooding back into the States, further diluting
purchase power, and Wiemar, Zimbabwe, Venezuela can scoot down a bit, and make some room for the next band of Keynesian brothers to take the wheel on the bus goes round and round, through the guard rail, plunging down, down, down.
“Deficits don’t matter” – shot put Cheney
“We need MORE borrowing and spending, not LESS!” – never gets it right Krugman
Or, maybe we should give stubby lil’ Robert (1/3) of a Reich a call, and get his take on economic policy.
A giant sucking sound happens.
Lots of servile democrats are going to DIE…………and thats a GOOD thing !
That’s OK, just print faster.
I’m glad to know how to survive in a wilderness.
That skill will be infinitely valuable if all this comes to be.
“when the world no longer wants dollars”
1) 90% of all physical and electronic dollars are not in the u.s. but are in other countries. the dollar is no longer a u.s. currency but a de facto world currency.
2) the majority of all physical dollar currency are $100 bills, held by non-americans as a secure store of value in their respective countries and economic systems.
3) during times of economic crisis in their respective countries/systems almost all flee, not to euros or yen or any of the incidental currencies, but to dollars. this is not habit or irrationality or sentiment, but a rational response on their part given their local circumstances – whatever the problems of the dollar, other currencies have it worse.
so.
a) the dollar is not going away any time soon.
b) the fed probably can print considerably more than it already has before the dollar finally fails.
c) the fed, in response to u.s. problems, will detach from the u.s. and become what it already is – a world bank.
Good chit mun…
How about this?
a) The dollar is going to take a 30% hair cut soon as the BRICS pull off the gaining momentum/ongoing international de-dollarization dethroning from world reserve currency status of the obviously out of gas petro dollar.
b) The DC Creature from Jekyll Island takes its orders from London and goes full evil retard stupid into ludicrous speed fiat hyperinflation.
FULL SPEED AHEAD…DAM THE BRICS AND THE USELESS EATERS!
TOWER OF BABBLE 2.0!!!
c) The Creature from Jekyll Island will fall on its sword to bring about the long planned end of and economic demolation (during the border invasion) of the US…and the blood line families who really own the creature will rub their hands together in glee.
D) But it will not go as the evil blood line families plan.
E) GOD moves.
The military Industrial Complex cannot bomb the piss out of BRICS and the Washington DC Pathetic Parasites cannot force this group to comply with SHIT !
Libya , Iraq and Afghanistan the DC Psychopaths were able to sell the nation thanks to a complacent media to push the propaganda and bend the target nation to capitulate for a while . Iran saw thru the CIA State Department bull shit and ultimately said FUCK OFF !
Well now the BRICS and their expansion abilities are telling the US to EAT OUR SHIT
What replaces the dollar as reserve currency? One would think the Euro, but it is almost as bad as the dollar.
State controlled money.? China’s renminbi? Russia’s rouble? Brazil’s real? Or India’s rupee?
Or do they do what Europe did and mint a common currency? Would Japan’s yen? Or are they now considered to “western”. Could the British pound make a comeback as the reserve currency? It will be interesting to see what replaces the dollar.
” but it is almost as bad as the dollar.”
🤣 Missed Your calling!