Even the IMF is Talking About the Decline of the USD
Their report ‘The Stealth Erosion of Dollar Dominance’ is not an exciting read but highlights a crazy important trend
There’s a ton of talk these days about the dollar, debt, sanctions, the SWIFT system, rubles, the yuan, and the petrodollar. The shake-ups that are occurring after the Ukraine invasion will have repercussions and ripple effects that’ll be felt well into the future. We’re surely living through a pivot point in global geopolitics.
By now, everybody knows that the USD is the global reserve currency and that gives the US special monetary privileges and undue influence in global economics. Most also know that breaking the dollar’s supremacy would usher in a whole new economic era — one where the US wouldn’t be the lone king of the hill.
And many experts are saying this era of dollar dominance is coming to a close.
Over the last decades, there’ve been slow steps in that direction. Geopolitical rivals have been wanting alternatives for years but took their time, never having the economic power to unseat the dollar’s hegemony. The inevitable but self-inflicted decline of Washington and the rise of Beijing, combined with the recent invasion and the unprecedented sanctions that followed, have triggered a flurry of moves that may never be reversed and could be accelerating the downward spiral of the USD.
Even the IMF released a report on March 24 entitled, ‘The Stealth Erosion of Dollar Dominance.’
The asset manager Larry Fink, who controls the world’s largest fund BlackRock and oversees $10 trillion, recently said globalization is ending.
And all signs point to a new multipolar world emerging, but Team Biden seems to think it’s still 1995 and is charging straight for an iceberg — the President might excitedly think it’s ice cream.
The economist Michael Hudson wrote his classic ‘Super Imperialism’ in 1972, shortly after President Nixon announced that the dollar was no longer exchangeable for gold. The book details how the USD’s status as the reserve currency gives the American economy the ability to control and command just about every economic corner of the globe.