If the dollar falls, it will be catastrophic for the American people on whose backs 80 years of reserve status were built. It will also subject billions of foreigners, for whom the dollar has meant decades of being bullied, to history’s greatest bait and switch.
The past few weeks, major countries have been moving away from the US dollar, raising doubts about the dollar’s long-dominant role in the world. Eight weeks ago, it was just pariah nations like Iran or Russia trying to de-dollarize. Now it’s Brazil, France, even Saudi Arabia—the lynchpin of the decades-long “petrodollar” arrangement.
If the dollar does lose its position as the global reserve currency, it will be catastrophic for the American economy. Catastrophic for the American people on whose backs 80 years of reserve status were built. And it will subject billions of foreigners, for whom the dollar has meant decades of being bullied, to history’s greatest bait and switch.
Dollar at Risk
In late March, Saudi Arabia announced it will price oil in Chinese yuan. Even CNN was worried, in a rare display of situational awareness, while Fox fretted about “Weimar”—hyperinflation.
The dollar has been the undisputed global reserve currency since the 1940s. Reserve currency status looks great on paper: You get to print stacks of green paper and foreigners give you cool stuff for it, like toasters, luxury cars, and copper mines. The problem is who profits—who gets paid when foreigners crave the green paper?
Unfortunately, it’s not the American people; it’s whomever’s printing money: The Fed, meaning the Treasury, to whom they hand their ill-gotten profits, and—you guessed it—Wall Street. Commercial banks.
To see why, imagine foreigners didn’t want dollars. The Fed and banks could only print a little bit since printing a lot would create inflation, and voters would toss them out.
But if foreigners want a large number of dollars, the Fed and banks can print a matching amount. It’s like a river flowing into the money supply reservoir, matched up with a river flowing out to foreigners. The reservoir stays stable, and voters don’t riot.
According to a Bloomberg report, analysts have warned that a $1.5 Trillion commercial real estate crash is coming.
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So if the dollar tanks the Rothschild Fed crime family would be holding the bag . Proven to be a racket they would go bankrupt and the American people would be debt free owing them nothing
When the American Dollar falls, hoo bloody ray. Biden has lost the oil from the Saudi’s who no longer want his Petrodollars for it, Biden has been spending billions of US Dollars supporting the Ukraine in the war against Putin and billions more on other American strategies and while Trump was in power, we thought America was bankrupt then and Trump was trying to reverse that – not that he was President long enough to achieve that success.
If America and the American dollar became a third world country with a third world currency, I am sure more reliable and stronger currencies would quickly take their place.
Speaking for myself, I live in one of those third world countries and I am totally fed up with the rates of exchange between the US$ and my countries currency and the high cost of everything here.