What Is Dedollarization & Why Are Countries Dumping The US Dollar?

Dedollarization is a term that refers to the process wherein countries tend to reduce their reliance on the US dollar as a reserve currency, medium of exchange, and also a unit of account. 

While it’s a no-brainer that the US dollar has long held a dominant position in the global financial system, this recent shift towards dedollarisation represents a critical transformation with significant implications for the future of international trade, investment, and monetary policy.

As the world becomes more and more interconnected, the need for a stable and equitable financial system is paramount. And with that, the overreliance on the US dollar as a reserve currency has to some extent led to vulnerabilities and imbalances in the global economy. These factors, combined with the growing economic power of emerging markets and their desire for a more diversified and resilient financial architecture, have spurred many countries’ interest in going ahead with dedollarization.

More…

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Like Germany after WWI, no one was discussing hyperinflation until it was too late. Then everyone was talking about it. The analogy is simple: the world is quickly getting off of the petrodollar and dedollarization will make your wealth worthless.

David DeGerolamo

    
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Lawnmore
Lawnmore
1 year ago

As I mentioned several months ago, I inherited fifty million Weimar marks from my father in law; it is as worthless now as when printed! He told me near the end, the money was losing value hourly and the employees who had jobs were paid twice daily!

Inflation has been around thousands of years, we know how it starts and how it ends, it ends with worthless money. I do not and won’t keep any significant money in USD!

He was also on the last train of injured to leave Stalingrad, he said starting a war with Russia was a bad idea, but what did he know. I am sure our leaders have it all figured out, just take your vaccine and all will be ok!

Michael
Michael
1 year ago

When your “Money” is backed by the “full faith and credit of the United States” and they are led by a meat puppet that needs a nanny and printing money by the boatload, what value do you expect?

Once faith in a nation’s fiat money is lost Papa Hemmingway’s quote comes into play.

“How did you go bankrupt?” Bill asked.
“Two ways,” Mike said. “Gradually and then suddenly.”
“What brought it on?”
“Friends,” said Mike. “I had a lot of friends. False friends. Then I had creditors, too. Probably had more creditors than anybody in England.”
From the sun also rises.

Our paid for false friends will rush to the exits trying to get any value out of their Treasury Bills.

Happened to the once Great Britain BUT they had the United States as a buddy, so they did reasonably well. Their once great “the sun never sets on the British Empire” shrunk to barely their own island as Ireland and Scotland seem to want to become independent. Thier mighty navy once the ruler of the waves has shrunk to one functional carrier that has a US MARINE AIRWING on it for aircraft and two frigates constantly rotating on missions.

Their winter of our discontent has happened more than a few times where nurses didn’t get paid, and garbage wasn’t collected.

Great Britain had America as a economic protector during these dark times.

Who haven’t we pissed off that will “Protect” us economically.

Protect your family and trusted friends. Winter of our discontent is near.

Martha
Martha
1 year ago

Know that we will Not be a superpower much longer; the United States is NOT mentioned in the end times.