Tag: USD demise

Here is the record since 1913. pic.twitter.com/nkTz5PFf5g

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— Jeffrey A Tucker (@jeffreyatucker) May 15, 2024

Via RT

The share of the greenback in trade between the countries has dropped to a historic low, according to a Foreign Ministry official © Getty Images / Oleg Elkov

The de-dollarization of Russia-China trade is practically complete, according to Georgy Zinoviev, the director of the Russian Foreign Ministry’s First Asian Department, as cited by RIA Novosti.

The official said the share of the US dollar in mutual settlements between the neighboring nations has substantially shrunk over the past two years.

“The share of national currencies in Russian-Chinese payments is growing at an extremely rapid pace,” Zinoviev told the news agency. “At the beginning of 2022 it was hovering around 25%, now it is exceeding 80%.”

Continue reading “Russia and China have effectively ditched the dollar”

From Peter Reagan at Birch Gold Group

In what is now a ten-year-old interview, Jim Rickards shocked his audience. Sadly, his controversial views then might be considered good news today…

After being pressed about his somewhat extreme economic predictions, he added some context:

The international monetary system has actually collapsed three times in the past 100 years. It collapsed in 1914, again in 1939 and most recently in 1971. And each time it wasn’t the end of the world, it didn’t mean that we all lived in caves and ate canned goods.

Two of those three collapses were caused by what we now call World War I and World War II. You know what that means so I won’t belabor the point.

His 1971 reference is shorthand for the U.S. move off the gold standard, which, granted, “wasn’t the end of the world.” Simply the beginning of a decade of high unemployment, high inflation and permanent damage to the global prestige of the nation.

We may be on the cusp of a fourth revolution in the international monetary system. Before we explore that, let me take a moment and explain exactly why it matters.

Continue reading “The U.S. Dollar’s Monopoly Is Not Going Well”

Guest Post by Paul Craig Roberts

Are You Ready for High Inflation and Collapsing Living Standards?

US power since World War II has been based on its financial dominance stemming from the dollar being the reserve currency held by central banks in place of gold.  As the dollar was the currency used to settle international trade accounts, every country needed dollars.  That ensured a large demand for dollars to absorb the supply of dollars from the growing US budget and trade deficits.  In effect, the dollar as world reserve currency allowed the US to pay its bills by printing money.

Continue reading “The US Dollar is Finished”

Guest Post by Paul Craig Roberts

The Federal Reserve’s higher interest rates after 12 years of zero interest rates are devaluing the asset side of banks’ balance sheets.  This frightens depositors and they withdraw their deposits.  Depositors also are withdrawing their money because they can get much higher interest rates on safe US Treasuries. According to some reports, $1 trillion has already been withdrawn from US banks.  Bloomberg is reporting rumors that Schwab’s $7 Trillion empire based on low rates is cracking from bond losses.  In the face of this vulnerability of the financial system, the Federal Reserve raised interest rates further.

Continue reading “Why the Dollar-based International System Is Breaking Up”