MW: Can America Survive Global De-Dollarization? COGwriter: No!
The international move to push aside the US dollar continues. India, which is involved in that, says it really is not intentional:
India Denies Targeting US Dollar as Dedollarization Reshapes Global Trade
October 8, 2024
India’s External Affairs Minister S. Jaishankar clarified that the country is not targeting the U.S. dollar in its economic policy, despite shifts in global trade and currency usage. Speaking in Washington, he emphasized that India’s trade adjustments are driven by practical concerns related to partners with dollar shortages, not a strategic effort to undermine the dollar’s dominance. https://news.bitcoin.com/india-denies-targeting-us-dollar-as-dedollarization-reshapes-global-trade/
India is saying it is doing what is best for itself. De-dollarization may or may not be intentional on India’s part, but the result is that it is occurring. Plus, India is a key member of the BRICS+ alliance, and de-dollarization is one of the intentional goals of BRICS. The BRICS+ alliance includes Russia, China, and various African and Asian nations.
Notice the following report:
October 6, 2024
Rumors have swirled around the potential unveiling of a BRICS economic alliance currency, thought to be called “the unit,” that will put further pressure on the U.S. dollar amid rising de-dollarization efforts from countries looking to increase economic sovereignty. …
BRICS, the acronym for the five original members of the economic summit – Brazil, Russia, India, China, and South Africa – is believed to have received interest in the rumored currency from more than 30 countries. …
Russia and its allies have been forced to move away from the U.S. dollar thanks to sanctions enacted by the West and, in turn, rumors about a BRICS-based currency have began to swirl. …
A new currency
Reports have since suggested the potential new BRICS currency will be 40% backed by gold and 60% backed by reserves in member currencies.
Meanwhile, reserve banks across the globe have added large amounts of gold to their coffers in recent years, further fueling speculation of a new gold-backed currency. Gold prices have risen exponentially in 2024 and is currently trading at about $2,650 an ounce.
While most experts don’t expect the new currency to be fully unveiled during this month’s BRICS alliance summit, they expect major headway in planning and discussions.
India, an original alliance member, has been speculated to be caught in the middle of the rumored currency creation – not wanting to abandon its U.S ties but still supporting some form of new world reserve currency. …
However, it’s clear the world’s efforts to dethrone the dollar are ramping up, and precious metals markets are unquestionably on the front lines of that war. https://www.jpost.com/business-and-innovation/precious-metals/article-823389
Related to the US dollar and BRICS, the Continuing Church of God (CCOG) put together the following video on our Bible News Prophecy YouTube channel:
BRICS Push Aside USA Dollar
The BRICS nations (Brazil, Russia, India, China, and South Africa) have as one of their founding goals, to eliminate the need to use USA dollars in cross-border trade. Six additional nations have been invited to join BRICS in 2024, and India reports that six more are also being looked at. The BRICS nations have already begun to drop the USA dollar for some cross-border trading with Russia and China indicating that they had almost done so completely in late 2023. What will happen to the economy and value of the USA dollar if more and more nations stop using it as a primary reserve and trading currency? What about hyperinflation? Does the Bible prophesy destruction for a highly indented nation in the end time? Is the USA the most indebted nation of all time? What about the intent and use of the Euro? Will Europe and Asia cooperate to eliminate the USA and its British-descended allies?
Here is a link to our video: BRICS Push Aside USA Dollar.
Now, notice something from Mises Wire:
Can America Survive Global De-Dollarization?
“Money does not grow on trees” is an old expression of wisdom that seems to have been disregarded by 21st century American policymakers. People all over the world and throughout time base their decisions primarily through lived experience. The US dollar became the world’s reserve currency in the aftermath of World War II, which is now almost eighty years ago. There is virtually no one in power at the American government or in leading institutions who has a living memory from before that period.
In fact, the elite status of US currency has been taken for granted and is being eroded by policies that create inflation as well as sanctions that exclude other nations from participating in the global economy that America dominates through its money. There is the danger that the constant erosion could precipitate an avalanche that could cause the dollar to lose its status.
This would shock the United States economy with massive price increases on consumer goods while crippling the local, state, and federal governments because deficit spending will no longer be possible if no one buys the debt. In this scenario, states like California and New York might find themselves turning to the federal government for some type of bailout while smaller states with more balanced budgets might find themselves wondering why they should be paying the bill for someone else’s reckless spending that they had no part of, which in turn could create a crisis of unity among the United States of America. …
And, if the dollar stops being accepted by producers in other nations for payment, then the trade deficit will become a shortage of goods manufactured abroad. The decrease in supply will lead to rising prices.
The ability to create money out of thin air will lose its magic as that money becomes near worthless as a form of payment. Everyone in America will feel the pain and, when people are struggling, they are less able and willing to help others, especially when they blame the out-of-control spending of some for the predicament that everyone is in. The danger to the United States of America is very real but it is also fixable, although it won’t be easy and it will require leaders that are not afraid to make difficult decisions instead of kicking them down the road. 10/04/24 https://mises.org/mises-wire/can-america-survive-global-de-dollarization
No, the US cannot survive this without massive change which it does not appear to be able to do. Yes, the danger to the US is real. And while in theory it is still fixable, that will not happen. Neither a possible Trump-Vance or Harris-Walz Administration has proposed anything that would truly stop de-dollarization. Actually threats against nations involved, by Donald Trump, as well as policies suggested by Kamala Harris, will tend to increase the speed of de-dollarization.
After I wrote the above, someone sent me the following in an email by Nick Giambruno:
The Unstoppable Path to Ever-Increasing Currency Debasement
October 8, 2024
How will the Fed EVER escape the trap of ever-increasing currency debasement?
I don’t think it will be possible.
It’s like being on a runaway train with no brakes.
When you put together the pieces to see the Big Picture, it’s clear that ever-increasing currency debasement is the inescapable outcome of the US government’s debt spiral.
Step #1: It’s politically impossible to even slow the federal spending growth rate, let alone cut it.
Step #2: Issuing ever-increasing amounts of debt is the only way to finance continuously expanding budget deficits.
Step #3: An ever-growing interest expense on the ever-growing federal debt compounds the problem because it adds to the deficit, which needs to be financed with even more debt, which causes more interest expense. In other words, the debt spiral is here.
Step #4: The skyrocketing interest expense threatens the solvency of the US government and forces the Fed to cut interest rates, buy Treasuries, and implement other monetary easing measures to try to control it.
Step #5: The money supply expands due to the Fed’s interest cost control measures.
Step #6: As the money supply expands prices rise, which compounds the problem as it increases government spending (go back to step #1).
The US dollar is going away as the world’s premier currency and the damage to the US economy is beyond what most of its politicians realize.
That said, it is not just Russia, China, and parts of Africa and Asia that are pushing towards de-dollarization. They are also in the process of increasing their gold reserves, partially at the expense of decreasing their US dollar reserves.
Notice something several years back related to Europe:
De-Dollarization: Europe Joins the Party
The ongoing “World War of Currencies”, as the German journalist Daniel D. Eckert called it, the battle for the future of the world monetary system is not a shallow action film but more like Game of Thrones – a complex series with hundreds of actors and locations, stretching over decades and demanding full concentration from the viewer.
The bottom line is that what has been true for decades still applies. The US dollar continues to enjoy the confidence of markets, governments, and central banks. But faith in the US dollar weakens a little every year. Europe, China, Russia and many small countries set new initiatives every year to make themselves independent. And gold, too, plays a major role in this slow departure from the US dollar. But for the world financial system, none of their currencies offer a viable, fully-fledged alternative to the US dollar yet, which is why any news of the death of the US dollar is definitely exaggerated.
Europe’s Small Uprising
Since the Greek crisis of 2012, the American media have often given the impression that the EU and the euro have already broken up or are about to break up. This is not the case. Twenty years after its creation in 1999, the euro area is larger than ever. Of course, nothing is perfect in the EU. The debt problems of the southern states have hardly improved. The structure of the euro zone itself is also often criticized and described as being in need of renovation. …
The euro currently accounts for around 20% of global currency reserves. This amount exceeds the euro zone’s share of global economic output. Around 36% of global payments are already made in the euro. The US dollar is at 40%. The EU imports oil and gas worth around EUR 300bn annually. But 80% of these are still invoiced in US dollars today. In view of the fact that only 2% of energy imports come from the USA, Juncker commented: “It is also absurd that European companies buy European planes in dollars instead of euros.”2 Despite all the economic, political and structural problems within the euro area, this is a statement full of self-confidence. …
You also have to ask yourself why the central banks are such hard-working gold buyers.
The answer is de-dollarization. Gold, which many central banks now include in their balance sheets at market value, offers an alternative. …
Only the next major crisis will show whether the euro, the yuan, or gold will really be able to do any harm to the leading currency status of the US dollar – or whether the US dollar still has enough life left in it to prevail. 09/13/19 https://mises.org/wire/de-dollarization-europe-joins-party
Yes, it will take time for the US dollar to be dethroned. Yes, gold and the Europeans will be involved. Many seems to forget that one of the purposes of the euro was to reduce the need to trade in US dollars in Europe. That has resulted in relatively little cross-border trade in US dollars across Europe.
Do not think that Europe will not one day support the complete toppling of the US dollar as well as the US itself (cf. Daniel 11:39).
The Hebrew prophet Habakkuk was told by God to write the following:
3 For the vision is yet for an appointed time; But at the end it will speak, and it will not lie. Though it tarries, wait for it; Because it will surely come, It will not tarry…5 Indeed, because he transgresses by wine, He is a proud man … 6 “Will not all these take up a proverb against him, And a taunting riddle against him, and say, ‘Woe to him who increases What is not his–how long? And to him who loads himself with many pledges’? 7 Will not your creditors rise up suddenly? Will they not awaken who oppress you? And you will become their booty. 8 Because you have plundered many nations, All the remnant of the people shall plunder you. Because of men’s blood And the violence of the land and the city, And of all who dwell in it. (Habakkuk 2:3,5,6-8).
The time will come when world will wake up to the fact that the USA cannot possibly pay back its debts and will take successful military actions against the USA (cf. Daniel 11:39).
I have long believed that Europe will one-day have some type of gold-backing for its currency (and published about that back in 2009).
After the US dollar is gone, the Bible shows that Europe will dominate international trade and finance, and this will involve gold (cf. Daniel 11:37-43; Revelation 18). It will also make deals with the BRICS+ nations.
The Bible shows that the European King of the North will end up with gold. Daniel 11:43:
43 He shall have power over the treasures of gold and silver, and over all the precious things of Egypt; also the Libyans and Ethiopians shall follow at his heels.
The “he” is the King of the North. This is the same King of the North that valued gold and silver in Daniel 11:38. Although other scriptures also show that gold and silver will have value around this time (like Revelation 18; 9:20), the Bible is clear that gold and silver will be worthless for a short time before Jesus returns, e.g. Ezekiel 7:19.
The fact that the King of the North himself will accumulate gold (and some silver) is consistent with several Byzantine (“Greek” Orthodox) prophecies of their expected Great Monarch:
Emperor Leo the Philosopher (died 912): You will amass gold…And you will be the leader of the surrounding nations…
Addressed to Emperor Manuel II Palaeogous (died 1425): The Emperor…will discover gold and silver…
Saint Andrew Fool-for-Christ (c. 4th century): God will reveal to this king all the gold wherever it happen to lay concealed from view…
One side note is that, in Egypt, major gold deposits were found in 2006. This is relevant as it does prove that Egypt now has enough gold that a foreign power could be interested in taking/using it as Bible prophecy teaches.
Since many are now questioning the role of the US dollar as the world’s reserve currency, more are looking into other currencies as well as gold.
Gold will set records in US dollar terms.
Now, I have made the previous statement many times, and gold has set records in US dollar terms many times since I started writing that statement.
It has been reported by others that many nations around the world are already in the process of accumulating gold to one day overthrow the U.S. dollar—and that the “U.S. is unprepared for this strategic alternative to dollar dominance.”
When the U.S. dollar totally collapses people all around the world will consider that even if the euro (or something similar) is strong, having a more gold-backed currency would be safer.
The collapse of the USA dollar will shake a lot of the world’s confidence in non-gold backed currencies.
The Europeans do not have to have a perfect currency, only one that is perceived to be in better shape than the US dollar.
Having the European power acquiring more gold to back the Euro or possibly another future European currency (that might potentially replace the Euro or even a basket of currencies) may greatly increase European credibility, prosperity, and influence around the globe, even if the backing is only implied.
The debt accumulation policies of the US government are going to be a factor in the dollar’s and the US’s decline.
The increases in America’s debt are heading the world into the time when something other than the US dollar will be valued as its reserve currency.
The US would need to make massive changes to possibly prevent this.
The end of US dollar dominance is coming.
Some items of possibly related interest may include:
Lost Tribes and Prophecies: What will happen to Australia, the British Isles, Canada, Europe, New Zealand and the United States of America? Where did those people come from? Can you totally rely on DNA? What about other peoples? Do you really know what will happen to Europe and the English-speaking peoples? What about Africa, Asia, South America, and the Islands? This free online book provides scriptural, scientific, historical references, and commentary to address those matters. Here are links to related sermons: Lost tribes, the Bible, and DNA; Lost tribes, prophecies, and identifications; 11 Tribes, 144,000, and Multitudes; Israel, Jeremiah, Tea Tephi, and British Royalty; Gentile European Beast; Royal Succession, Samaria, and Prophecies; Asia, Islands, Latin America, Africa, and Armageddon; When Will the End of the Age Come?; Rise of the Prophesied King of the North; Christian Persecution from the Beast; WWIII and the Coming New World Order; and Woes, WWIV, and the Good News of the Kingdom of God.
Spiritual Samaritans: Old and New Who were the Samaritans? Do the represent true Christianity or something else? Here is a link to a related sermon: USA in Prophecy: Samaria.
The End of US Dollar Dominance Is the USA losing its economic status? What about the petro-gold-yuan? A related video is also available: US Dollar being challenged by Gold-Petro-Yuan.
The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value. Inflation/deflation? What do Christians need to know about gold and silver? Two videos of related interest may be: Germany, Gold, and the US Dollar and Silver, Science, and Scripture.
Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? Is an emerging European power “the daughter of Babylon”? What is ahead for Europe? Here is are links to related videos: European history and the Bible, Europe In Prophecy, The End of European Babylon, and Can You Prove that the Beast to Come is European?
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