Success: The World Seeks Ways to Do Away with the Dollar

For the longest time the status of dollar as the world reserve currency was abused to the point when it seemed that it became indispensable. National governments, central banks, and global financial markets have depended on the dollar for everything, from its status as a safe-haven asset to its use in worldwide transactions.

However, there’s an end to everything, and it might be the time to bid farewell to the dollar. In one of its articles the Wall Street Journal would point out that the emergence of the truly multipolar world means that sooner or later the dollar will be dethroned.

The latest reports coming from the IMF on the reserves held by central banks demonstrate a shift away from the dollar, as analysts point out that a rethink of the political risks embedded into US assets may be long overdue. According to the chief international strategist at Deutsche Bank in New York, Alan Ruski central banks are chipping away at the dollar’s exorbitant privilege, due to the rapid change of the existing geopolitical landscape.

In turn, Goldman Sachs analysts would point out that dollar reserves slipped by 4% over a two year period. At the same time, reserve managers carry adding renminbi and Japanese yen holdings to their portfolios, especially in countries that have had tense political relationships with the US lately.

Recently, the share of dollars held in global reserves has tumbled from 65.3% in the fourth quarter of 2016 to 61.7%. Meanwhile, the shares of allocated reserves are becoming more diversified as the euro, yuan, and yen have attained a greater representation in global reserves.

In recent years, a rapidly expanding number of countries started implementing policies that led to dedollarization of their economies. An abrupt drop in the share of dollar held in the national reserves of leading international players and their commitment to the use of national currencies in their transactions have become a new norm. To a large extent, this trend was created by Washington itself, that chose sanctions as the primary tool of its foreign policy. When so-called trade restrictions are imposed arbitrarily, impulsively and recklessly, it’s no wonder that most international players would rapidly become concerned. However, Washington carries on ignoring the long-term consequences that such policies may produce, subjecting even its most trusted economic partners to the so-called trade restrictions. Under these circumstances, some analysts point out, it seems abnormal that the United States remain in control of the world’s reserve currency, especially in a situation when its positions were already crumbling against the backdrop of the emerging multipolar order….

Who benefits?  The same financial interests that control US foreign policy, and increasingly, US domestic policy.  They intend to buy up the country for pennies on the dollar, as they did during the great ripoff.  This is disaster capitalism.  It seems americans should have been the first to jettison the federal reserve note.

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