De-dollarisation and the consequences

It's not pretty reading but it will happen

In my recent article about US Sanctions being a bad idea, it is time to start deep diving into what de-dollarisation is and how countries will go about hopefully achieving their dollar independence.

In short - de-dollarisation refers to the process of reducing reliance on the US dollar as a global reserve currency and replacing it with alternative currencies, such as the euro or the yuan. The end game will be a new gold backed currency of some sort. This is why central banks are stacking up on gold bullion. They know the end game. They can see what is coming down the road.

There are 5 reasons why de-dollarising is crucial:

Reduced Exposure to US Economic Policy

The US dollar's status as the dominant global reserve currency gives the US significant influence over global economic policies. This can be problematic for other countries if they disagree with US policies or if US policies have unintended consequences that negatively impact their economies. De-dollarisation reduces this exposure and gives countries more autonomy over their economic policies.

Russia and China have been loading up on bullion for years. Other countries are following suit so this is no surprise. Countries want (and are trying) to get out of the dollars hemegony. This will likely be very successful in due course.