{"id":19831,"date":"2023-04-14T00:16:24","date_gmt":"2023-04-14T00:16:24","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/de-dollarization-escalates-amid-us-economic-warfare-and-error-fraught-policies-economist-says-economics-bitcoin-news\/"},"modified":"2023-04-14T00:16:24","modified_gmt":"2023-04-14T00:16:24","slug":"de-dollarization-escalates-amid-us-economic-warfare-and-error-fraught-policies-economist-says-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/de-dollarization-escalates-amid-us-economic-warfare-and-error-fraught-policies-economist-says-economics-bitcoin-news\/","title":{"rendered":"De-Dollarization Escalates Amid US ‘Economic Warfare’ and ‘Error-Fraught’ Policies, Economist Says \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Economist Peter C. Earle says de-dollarization has begun, emphasizing that \u201cIt\u2019s not just the conscription of the dollar in economic warfare, but increasingly error-fraught monetary policy regimes that are driving various interests away from the greenback.\u201d He described: \u201cBy weaponizing dollar dominance and permitting expanding mandates to disorient U.S. monetary policy, the dollar\u2019s fate as the lingua franca of world commerce over the long haul may already be sealed.\u201d<\/strong><\/p>\n

Rising De-Dollarization Trend<\/h2>\n

Economist Peter C. Earle wrote an opinion<\/a> piece, titled \u201cDe-dollarization Has Begun,\u201d published by the American Institute of Economic Research last week.<\/p>\n

He explained that \u201cThe profound economic disruption experienced by Iran, and more recently Russia, after being evicted from dollar-based trading systems like SWIFT \u2026 have led many nations to consider imminent contingency plans,\u201d elaborating:<\/p>\n

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It\u2019s not just the conscription of the dollar in economic warfare, but increasingly error-fraught monetary policy regimes that are driving various interests away from the greenback.<\/p>\n<\/blockquote>\n

The monetary policy response to the 2008 crisis and the Covid outbreak caused unpredictable fluctuations in the dollar\u2019s value, the economist detailed. The pandemic triggered a massive expansionary response in 2020, followed by an initial disregard for the inflation outbreak that subsequently hit four-decade highs \u201cbefore an aggressive contractionary shift in policy that destabilized precarious financial institutions was implemented,\u201d he noted.<\/p>\n

Earle referenced efforts by several countries in attempting to reduce their reliance on the U.S. dollar, including the agreement between China and Brazil<\/a> to settle trades in local currencies. In addition, the BRICS nations (Brazil, Russia, India, China, and South Africa) are reportedly working to create a new currency<\/a>.<\/p>\n

According to the economist, cryptocurrencies, central bank digital currencies (CBDCs), and baskets of commodities representative of a given nation are among the U.S. dollar alternatives being discussed. However, he cautioned that \u201cMoving away from the dollar brings substantial barriers to exit as well as network effects to overcome, owing to historical, technological, financial, and habitual obstacles.\u201d<\/p>\n

While stating that \u201cThe dollar, in some shape or form, will likely be around for a long time. Perhaps very long,\u201d Earle warned:<\/p>\n

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By weaponizing dollar dominance and permitting expanding mandates to disorient U.S. monetary policy, the dollar\u2019s fate as the lingua franca of world commerce over the long haul may already be sealed.<\/p>\n<\/blockquote>\n

\u201cSo long as the political will to moor US fiscal and monetary policies to those consistent with the constitution of sound money remain an inconversable matter, de-dollarization will proceed. And slower or more quickly, the dollar will lose ground abroad,\u201d he concluded.<\/p>\n

A number of economists have made predictions about the future of the U.S. dollar. Nouriel Roubini, aka Dr. Doom, anticipates that the global reserve currency system<\/a> will shift from being unipolar to bipolar. Investment manager Larry Lepard said the USD could lose most of its value in five years<\/a>. Meanwhile, gold bug Peter Schiff recently advised people to get rid of their dollars now<\/a> and Rich Dad Poor Dad author Robert Kiyosaki reiterated his prediction that the U.S. dollar is dying<\/a>.<\/p>\n

Do you agree with Peter C. Earle about de-dollarization? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA 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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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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