The ongoing global sanctions against Russia in the wake of its invasion of Ukraine may have rightly isolated Moscow, but they've also weakened the standing of the US dollar in the process. Shutterstock
Jay Norton, NYPost: Why the US dollar has become an at-risk currency
Everywhere you turn there’s chatter about the ongoing US economic sanctions against Russia. The Russian Central Bank, Russian banks, Russian companies, Russian oligarchs — and anyone caught helping them — have seen their fortunes entangled since Moscow invaded Ukraine just over a year ago.
From Davos to Aspen, American Treasury officials tout the unprecedented scale and scope of this powerful economic weapon.
And why not? The effort has been impressive.
The US government task forces have beached scores of yachts, grounded planes, blocked hundreds of millions of dollars of central bank assets and cut Russian financial institutions off from the global SWIFT financial system.
Sanctions are an ancient game: in 432 B.C., Athens crushed its rival — Megara — by banning their traders from Athenian marketplaces.
For the US government in the 21st century, economic sanctions aren’t merely second nature, they’ve become a central tool of foreign policy. More than 10,000 people and dozens of countries are subject to sanctions worldwide.
Read more ....
Update: NYP: The US dollar has become an at-risk currency (Mordern diplomacy).
WNU Editor: A year before Russia's invasion of Ukraine I predicted that the US dollar will continue to exist as the global reserve currency for the next 2 to 3 decades (if not more). I do not believe this anymore.
Money printing followed by massive spending has created a debt and inflation crisis that the US shows no signs of stopping. Coupled with a sanctions war against the resource super power of the world (Russia), and the start of a sanctions war against the world's manufacturing super power (China), I do not have hope that the US dollar will continue to dominate as the world's leading currency. I now give it 5 to 10 years, and maybe less.
14 comments:
Hey hey, now. Look boss, have you counted the acres of top grade Georgia pine pulpwood forests for further $$$ creation by the best printing presses in the known universe and beyond? Tanker loads of ink in our harbors unloading as I type?
And...best of all, creator of Modern Monetary Theory right here in the land of liberty.
If this isn't enough to reassure the most sceptical in our midst,,,WE HAVE JOE!!!!!!!!
America's wealth is FAILURE PROOF!!!!!!!
Buy a wheel burrow, just in case, you might need it.
I give it much less than 5 years. I predicted the loss of the US $ ad world reserve currency in 1995. Even then I knew it was inevitable and wrote letters to our leadership to prepare and plan accordingly. Essentially the goal needed to he/needs to be a "soft landing" when the inevitable happens. What I didn't anticipate was the inability of the major world powers to come together on the replacement foe the US $.
Obviously conflicts with the resource and manufacturing superpowers is quite stupid and needs to be ended ASAP. Obviously the inevitable defeat of Ukraine will negatively affect our country. It was extreme folly yo wade in to that.
I am curious what do you think will replace the US $? I'd predict the "west" will dump the US choosing to survive and the BRICS will decide on the replacement while consulting western European nations ad junior partners. Of course countries like the UK, France, and Germany may preemptively open negotiations to join BRICS. There's little like self interest to motivate humans to make sound decisions!!
5-10 years seems generous to me considering how fast things are happening these days. More like 2-5 years and it’s wheel barrel time
WNU is usually pretty accurate in his analysis, but I give it less than 2 yrs.
Completely self inflicted too.
Now that the developing world has a choice in it's dealings, the western elites are constructing an iron curtain around their own dominion to extract as much wealth from within, rather than competing with the rising elite class from abroad. Competing would require the western elites to downsize their lifestyles (from mega-wealthy to extremely wealthy) and to operate, at least to some degree, on a merit based system again.
Instead we get media-fueled sanction hysteria that sequesters us off (13.5% of world population) from the rest of the planet. We get an indefinite period of austerity in order to maintain our vampiric elites and fund the behemoth federal govt, along with all the leeches attached to it's underbelly.
Oh, and $35 trillion in debt that we're going to have to soon start paying down, under the watchful eye and authoritarian measures of the federal govt.
The people who left your children and grand children with that burden will be long gone to Montenegro, the Bahamas, Israel, and other banking havens that will thrive atop the money flows leaving America to finally repay it's foreign creditors.
Slava.
B.Poster
For the most part, you've nailed it!!
B Poster the longest running troll in WNU agrees with a Russian troll. Coincidence?
No analysis to offer except insults. Our leadership class uses the term "troll" to try and discredit legitimate critique of their policies.
Having the US $ as world reserve currency is a legitimate over relic from the end of WW2 that was never intended to be long term. Having this blessing has allowed our leadership class to punch above our country's weight for decades.
Why spar with a troll, who is a serial, nonstop liar?
B poster you got two nit wits you have been dealing with. Skoda and Mr Fair and Balanced.
We know who they are, so just keep commenting because you have salient points to make. Where as these two depressing dimwits find it hard to get out of the jackass mode.
^ Russian troll encouriaging Russian troll with handle B Poster
Lol. 2 years? 5 years?
Thanks for the reminder that the readership of this blog doesn’t have a clue, even though the news aggregation is solid.
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