Since weaponizing the U. S. dollar is causing countries to move away from the dollar, to restore confidence, should the U. S. return Russia’s money?

[Kelley1]

Countries diversify currencies due to Washington's irresponsible acts:

Many insiders believe that de-dollarization has emerged as a financial trend in the past one or two years, manifesting itself as a concerted effort by an increasing number of countries to diminish the prominence of the US dollar in international trade, and the desire by a clear majority of central banks around the world that gold should become a more prominent reserve asset in place of the dollar.

One of the driving forces of this trend, they say, is the US' weaponization of the currency.

Sourabh Gupta, senior fellow at the Institute for China-America Studies in Washington, said the centrality of the dollar's role in the global financial system has been gradually shrinking in the past 10 to 15 years.

"But this year that debate has been given added impetus by the sanctions imposed by the United States against Russia."

A newly released report by the Quincy Institute for Responsible Statecraft, a US think tank focusing on foreign policy, described de-dollarization as "an unstoppable trend".

"A major driver is Washington's weaponization of its currency via sanctions, covering 29 percent of the global economy," it said.

In another commentary published last month in the online magazine Responsible Statecraft, Frank Giustra, co-chair of the nonprofit Crisis Group headquartered in Brussels, said the idea that the dollar could lose its dominance had been unthinkable in most of the developed world until the US and its allies froze Russia's currency reserves and shut it out from the SWIFT system, after the Russia-Ukraine conflict broke out in February last year.

"Financial systems are built on trust, and if they are weaponized they lose the trust necessary to retain their dominance," he wrote.

Even US Treasury Secretary Janet Yellen acknowledged that the sanctions could cause or exacerbate the de-dollarization trend.

Updates

2 mo

In any case, at least one constructive lesson has been learned. The United States and its NATO minions can never be trusted. Russia and all other countries must always act decisively to safeguard its interests and conduct relations with the Western powers on the basis that they are inherently treacherous, malicious in intent, and completely unreliable.

[exitseven]

The dollar is in trouble because of the deficit. The government needs to learn to live with less just like the rest of us had to do. We need to cut , cut and cut some more, Drill for energy and sell it to our allies, and stop financing wars all over the world. If the dollar is strong the other problems will take care of themselves.

[OtterMan68]

we just set a record for fossil fuel extraction in the US the other month.
Year Debt in billions Debt/GDP Ratio Major Event
2015 $18,151 100% Oil prices fell
2016 $19,573 105% Brexit
2017 $20,245 104% Congress raised the debt ceiling
2018 $21,516 105% Trump tax cuts
2019 $22,719 107% Trade wars
2020 $27,748 129% COVID-19 and 2020 recession
2021 $29,617 124% COVID-19 and American Rescue Plan Act
2022 $30,824 123% Inflation Reduction Act and student loan forgiveness

[exitseven]

@OtterMan68 they are counting it in dollars. Inflation has reduced the value of money by as much as 50%. If you looked at it by barrels it would show a different picture

[exitseven]

Thanks for the MHO😎

[DJB72]

The Dollar isn't the stable currency it was when it was backed by the Gold Standard. Now it's backed by debt instead and anyone that's ever had a loan knows their ass belongs to the bank until you've paid it off.

Let's think, who's lent money to the USA...🤔🤣

[RavVid]

Not a US citizen so read in that light of me not having skin in the game.

The US is now self sufficient in oil/gas and so is not buying as much from Middle East and elsewhere. It is probably going to be a consequence that oil/gas gets priced in other currencies to some degree. The EU might prefer Euros for example but again might not. If they saw USD falling against the Euro they'd want to pay long contracts in USD. If USD was rising they'd want to pay in Euros.

China did not want to pay in Rubles and Russia did not want to receive Yuan but were forced to take the junk currency. BRICS has a vision of something other than USD as the global reserve currency but most of them are piss ante countries that don't matter.

Most countries don't matter at all. What do matter? EU, UK, Japan, South Korea, Taiwan, a few others. China's currency Yuan is a surprising low 6% of global trade. Let me put the Yuan in perspective. The Aussie dollar beats the Yuan by a wide margin in international trade and reserves but we are only the 14th largest GDP.

The Ruble is rubble now. Whatever the US is doing the Europeans & other US allies are also doing and have equally frozen Russian assets and look more likely to seize them as opposed to freezing assets.

Speaking of freezing, Russian artic oilwells are likely to freeze and become inoperative. Their oil revenue is steadily dropping so the ruble is not displacing USD anytime soon

The point is it is the most developed economies that are punishing Russia for being a bad international citizen not just the US on it own. Maybe the Ruskies will learn to be nice.

So I think your fears are higher than need be. Though maybe you should watch out for the Aussie dollar :). It is more on track to become the global reserve currency than the Yuan.

[bobby_bush_eater]

No, that's a pointless drop in the bucket ultimately. That also sends a strange message to NATO and the US citizens. Despite my personal view the US stance has been to aide Ukraine and hurt Russia where we can and this would just be super questionable.

Once the sanctions happened it forever changed how Russia has to operate. That money as essentially a show of good faith would be accepted then Russia would immediately turn away. The plan is in motion with China. The main problem for Russia is all the economic issues that China has with their money. They still consistently peg the Yuna below the dollar and Euro to remain attractive internationally. Russia can rely on China for certain systems to be less sufficient on Europe and more in China but ultimately they don't want that either. Putin wants the ability to be entirely self reliant.

To the USA Russia is not an economic force at all. They matter to Europe only for their oil (prices are high in Europe) and grain (Ukraine is also a huge producer of grain). The dollar is finally under attack by China but all the previous failures leading up to its vulnerability have come from within. It's our politicians causing this with insane spending and useless spending. They pass short sighted bills to remain popular just to stay in power (stimulus bills, PPP, loan forgiveness, foreign aid, money to illegals).

Russia is a drop in the bucket in actuality how can they threaten us? They don't have the power to (don't bring up nukes), China barely does too as our economies are tied so heavily. The fall of the dollar will be from within Congress and the Senate.

[BoopBoopBeep]

We freeze billions in assets regularly. The Russian money is hardly a blip, not to mention all the crypto we seized. Plus as recently as 3 years ago, there are still certain major players who remain "off market" that pretty much will only accept USD and sub-2ct investment grade diamonds and to a lesser extent crypto, but that has to be laundered so extensively with the blockchain exploited you might as well still be using cash. One day there may be a legitimate shift to something else, but I'm not sure I'm ready to call 10-15% major. I have associates at FinCEN who do international cases and they said they're still looking at 90-95% USD even if there is no US actor, just due to ease of movement.

[Surely]

The US has weaponized the dollar against its own citizens. More to come!
When they want to eliminate the dollar and go by way of credit cards. They will not only know what you buy. But will be able to control what you buy!
Besides, 38 Billion is only peeing in the oceans! If that were to make Putin stop invading Ukraine. It would be a cheap investment!

[Friendlybro79]

Out of curiosity are you Russian? Just curious no judging because it says your from the US but you sound very pro Moscow. Trying to understand where you're coming from. Also, if you're just being critical of the US and sharing your findings regarding this topic and your distrust for our government. All to which you're entitled your opinion.

[OtterMan68]

Ask Argentina. They are going to the dollar.

The BRICS countries don't want to give up their own currencies. The ruble is in the toilet. Russia has few friends and even fewer countries that would dare peg their currency to the ruble. Same with China and India, but not to the extreme Russia is.

The dollar is still the Big Man on Campus.

[abc3643]

I knew the BRIC question was coming sooner or later...

[OtterMan68]

BRIC is no threat to the dollar

[abc3643]

@OtterMan68 I never said it was.
This young lady has an obsession with BRIC and she needs to be careful about her overt naïve disloyal tendencies toward the US. Nothing is private anymore.

[normalice]

US should nuke all of Russia, in my opinion. Their president insists all of Russia is united behind the child rape invasion in Ukraine so the world doesn't need anyone in Russia to keep being alive.

[Kelley1]

Here is a person that is in a hurry to die. Afterwards, China will move in and take over what little remains of both countries with 200 million Chinese moving to what was the USA and 100 million moving into Russia.

[normalice]

Pretty much the whole world is just wondering why it taking so long for putin to fall out of a window.

[Friendlybro79]

@normalice we should not nuke an entire country due to the sheer fact it will start the end of all of us. Plus we shouldn't want to kill an entire country of people even if we don't like them. Be a better human.

[normalice]

@Friendlybro79 but putin said Russia is united behind their child rape invasion so yes we should want to kill the entire country. The only problem with nukes is that they are too quick.

Unless you are suggesting putin was lying?

[Friendlybro79]

I suggest not all their citizens are free to disagree with him. I think he is a maniac and should be dealt with himself. He's def got to go. That said anyone trying to suggest we should kill millions of people is crazy themselves. Yes you are crazy.

[normalice]

@Friendlybro79 god you're dense. I'm talking to the question asker. It is clear they are pushing Russian misinformation and so I was trying to extrapolate the logical conclusions of the particular misinformation about Russians being united.

[Nice222]

It’s time to bring back the gold standard.