Jeffrey Tucker says we are at the turning point for the US dollar, citing a growing de-dollarization trend. “The dollar is simply not going to be king,” he warned, adding that history will record recent events “as the turning point for the dollar.”
Jeffrey Tucker on de-dollarization, the turning point of the USD
Jeffrey Tucker, an author and publisher who worked for former US Representative Ron Paul and the Mises Institute for many years, shared his views on the growing trend of de-dollarization and its effects on the US economy in an interview with NTD News on Wednesday. .
Responding to a question about whether de-dollarization is really happening and when we will feel its effects, he explained that the US has dominated the global currency market since 1944, allowing it to influence policy around the world. However, referring to the attack and sanctions imposed by the US government on Russia following the outbreak of the Russia-Ukraine war, he opined:
History will record that this was the turning point for the dollar. Since 1944, the dollar has been dominant even after the end of the gold standard in 1971… That really changed with the attack on Russia and the sanctions because a lot of those assets that were seized by the US arbitrarily were denominated, of course . , in dollars.
“If the US puts its political power behind other people’s willingness to hold their currency and hits them and attacks them and criticizes their own policies and actually seizes assets, that just discourages people from holding the dollar. So all of a sudden we have a situation where all these very powerful and important countries are saying, ‘We need to do something about this. Let’s discard the dollar. We have to move on to something else. They can do it and it’s starting to happen,” she detailed.
Noting that the BRICS countries (Brazil, Russia, India, China, and South Africa) are beginning to “marginalize” the USD, he emphasized that it will affect the state of US debt, which could really slow down the Federal Reserve. .
Inflation is ‘sticky’
Regarding how de-dollarization affects Americans in terms of a potential recession, Tucker explained: “The impact at the national level will not be as pronounced as people might think. The most important thing we have to worry about at the national level is internal de-dollarization, that is, inflation.”
He stressed that inflation is “sticky”, adding: “It is with us. Does not go anywhere. The Fed hasn’t been able to reverse it.” He further noted that the USD has lost 15 cents of its value in the last two and a half years. “That’s inflation,” he exclaimed, emphasizing that it is the “direct consequence of Fed mismanagement.”
Tucker warned: “De-dollarization will affect us as we travel internationally. Right now the dollar is basically gold anywhere it travels in the US… That will definitely come to an end.” In addition, he said that it will “also severely harm international businesses domiciled in the US.” He concluded:
The dollar is simply not going to be king. This is not going to happen tomorrow or next year or even within the next five years, but looking at the long-term trajectory, I think we are at an inflection point.
Do you agree with Jeffrey Tucker on de-dollarization? Let us know in the comments section.
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