USD Losing Its Status as a Global Currency – Economics Bitcoin News

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Jeffrey Tucker recently commented that the U.S. dollar is no longer king and we are at the turning point for the currency’s global dominance. “The dollar’s just not going to be king,” he stated, adding that recent events will be remembered as the time when the USD started to lose its status as a world currency.

Jeffrey Tucker on the Decline of the U.S. Dollar

Author and publisher Jeffrey Tucker recently had an interview with NTD News where he discussed the effects of de-dollarization on the U.S. economy. He explained that the dollar has had a dominant position in the world since 1944, which has allowed the U.S. to influence policies worldwide. However, he argued that this has changed due to the recent sanctions imposed by the U.S. government on Russia:

History will record that 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 has really changed with the attack on Russia and the sanctions because a lot of those assets that were confiscated by the U.S. just arbitrarily were denominated, of course, in dollars.

“If the U.S. puts its political might behind other people’s willingness to hold its currency and bludgeons them and attacks them and criticizes their own policies and actually confiscates assets, then that just discourages people from holding the dollar. So, suddenly we have a situation where all these very powerful, important countries are saying: ‘We need to do something about this. Let’s dump the dollar. We’ve got to move on to something else.’ They can do it and it’s starting to happen,” he detailed.

Notably, he noted that the BRICS countries (Brazil, Russia, India, China, and South Africa) are beginning to marginalize the USD, which could potentially have a major impact on the U.S. debt and the Federal Reserve.

Domestic Impact of De-Dollarization

When asked about the potential effects of de-dollarization on the U.S. domestic economy, Tucker explained that “the impact domestically is not going to be as pronounced as people might think.” He further asserted that the primary concern for Americans is inflation, which he stated is “sticky” and “not going anywhere.”

Tucker warned that de-dollarization will “definitely” affect Americans when traveling internationally and hurt U.S.-based international businesses. He concluded:

The dollar’s just not going to be king. This isn’t going to happen tomorrow or next year or even the next five years, but looking at the long-term trajectory, I think we are at a turning point.

Do you agree with Jeffrey Tucker that the USD is losing its status as a global currency? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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