2473a - 2y
If want to learn about the drivers of the conflict with #Russia and the forces behind #dedollarization, check out this interview https://m.youtube.com/watch?v=yb3u-a0eGek Key points The #dollar as the world’s reserve #currency has hollowed out the US industrial base to the point where it poses a national security threat. It is increasingly becoming Washington‘s objective to move towards a neutral reserve asset. This position has gained momentum against the traditional position that the dollar‘s position must be upheld in order to ensure US dominance. Seizing of Russian dollar reserves in 2022 might not have been a panic action but a deliberate step to weaken the reserve status of the US dollar. (min 3:52) Under the assumption that non-Western nations (China, Russia, etc.) continue to buy #gold rather than US treasuries as reserves the #FED has two possibilities: (1) It maintains its hawkish approach leading to further rise in interest rate and deflation. This leads to a strong dollar but default of the government on its debt. (min 17:48) (2) The FED yields and monetizes government debt leading to inflation and a weaker dollar. (min 20:25) In the context of internal political politics outcome (2) is highly likely in the mid to long-term. The Russia-Ukraine war should be considered as a proxy war in the context of Russia making a move out of the unipolar dollar world multi currency world into a multi-polar world in which gold will play a predominant role. To work around #sanctions #oil exports are increasingly settled in gold. The gold price can no longer be suppressed and rises. (min 34:20) The way for the US to resist this is to create a depression to reduce demand for oil to weaken the resource-driven opponent. The group of resource-driven, however, is growing in the form of the #BRICS alliance. (min 38:30) #grownostr
