Jeffrey Tucker states we are at the turning point for the U.S. dollar, pointing out a growing de-dollarization pattern. “The dollar’s just not going to be king,” he cautioned, including that history will tape-record current occasions “as the turning point for the dollar.”
Jeffrey Tucker on De-Dollarization, USD’s Turning Point
Jeffrey Tucker, an author and publisher who worked for previous U.S. Representative Ron Paul and the Mises Institute for several years, shared his view on the growing de-dollarization pattern and its impacts on the U.S. economy in an interview with NTD News on Wednesday.
Responding to a concern about whether de-dollarization is really occurring and when we will feel its impacts, he discussed that the U.S. has actually held supremacy in the worldwide currency market given that 1944, which has actually allowed it to affect policies worldwide. However, describing the attack and sanctions enforced by the U.S. federal government on Russia following the break out of the Russia-Ukraine war, he suggested:
History will tape-record that was the turning point for the dollar. Since 1944, the dollar has actually been dominant even after completion of the gold requirement in 1971 … That has actually actually altered with the attack on Russia and the sanctions since a great deal of those possessions that were seized by the U.S. simply arbitrarily were denominated, obviously, in dollars.
“If the U.S. puts its political might behind other people’s willingness to hold its currency and bludgeons them and attacks them and criticizes their own policies and actually confiscates assets, then that just discourages people from holding the dollar. So, suddenly we have a situation where all these very powerful, important countries are saying: ‘We need to do something about this. Let’s dump the dollar. We’ve got to move on to something else.’ They can do it and it’s starting to happen,” he detailed.
Noting that the BRICS nations (Brazil, Russia, India, China, and South Africa) are beginning to “marginalize” the USD, he worried that it will impact the status of U.S. financial obligation which might actually limit the Federal Reserve.
Inflation Is ‘Sticky’
Regarding how de-dollarization impacts Americans in regards to a prospective economic downturn, Tucker discussed: “The impact domestically is not going to be as pronounced as people might think. The big thing we have to worry about domestically is domestic de-dollarization, namely inflation.”
He worried that inflation is “sticky,” including: “It’s with us. It’s not going anywhere. The Fed hasn’t had the ability to reverse it.” He even more kept in mind that the USD has actually lost 15 cents of its worth over the previous 2 and a half years. “That’s inflation,” he exclaimed, highlighting that it’s the “direct consequence of the Fed’s mismanagement.”
Tucker warned: “De-dollarization will affect us as we travel internationally. Right now, the dollar is basically gold anywhere you travel in the U.S. … That will definitely come to an end.” Furthermore, he stated it will “also seriously hurt global company that’s domiciled in the U.S.” He concluded:
The dollar’s simply not going to be king. This isn’t going to occur tomorrow or next year or perhaps the next 5 years, however looking at the long-lasting trajectory, I believe we are at a turning point.
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