Simon Ng Jeffrey Tucker said that the US dollar is not going to be dominating the world anymore. He warned us that this change could be once-in-a-lifetime and will be remembered in history as the turning point for the US dollar.
De-Dollarization
Jeffrey Tucker, a writer and publisher who used to work with former U.S. Representative Ron Paul and the Mises Institute, talked about the increasing trend of not using dollars as currency in an interview with NTD News on Wednesday. He discussed how this could have impacts on the American economy.
When asked if de-dollarization is really happening and when we will experience its effects, the answer was that since 1944, the United States has been in charge of the currency market around the world. This allowed them to affect laws in many places. However, because of a fight between Russia and Ukraine, the US attacked and punished Russia. This could mean a change in how the US affects global currencies.
“Something big happened recently that could change the power of the dollar. Since 1944, the dollar has been really important and kept its power even after 1971 when it stopped being linked to gold. But this all changed because of something the U.S. did to Russia – they took away some stuff from them and made those things have a price in dollars.”
The United States is using its political power to convince other countries to use their currency, but in a way that’s not working. They are bullying, attacking and even taking away these countries’ money. This has caused other countries to decide it’s time for something else. They want to find an alternative to the U.S.’s dollar and it’s beginning to happen.
The countries of Brazil, Russia, India, China, and South Africa (called BRICS) are trying to limit how much money is worth in US dollars right now. This might affect the amount of money people owe to the US government. This could also make it more difficult for the Federal Reserve (a part of the US government that manages the country’s money) to do its job.
The US Dollar
Tucker was talking about how de-dollarization might affect Americans if there is a potential recession. He said that the effect won’t be too intense within the USA, but we should be more concerned with inflation which is caused by domestic de-dollarization.
He said that inflation is here to stay and the Federal Reserve (the Fed) has not been able to control it. He also noted that in the past two and a half years, our country’s dollar steadily decreased its value by 15 cents. He believes this is due to the Fed’s bad management of money.
Tucker warned that using the US dollar to travel overseas wasn’t going to last forever. It will have an impact on people travelling and businesses based in the US too. In other words, it won’t be as easy anymore.
“In the long run, the dollar won’t be as important as it is now. That doesn’t mean things will change tomorrow or next year, but over time they definitely will. Do you think Jeffrey Tucker is right? Tell us in the comments.”
