Sanctions Could Hasten the Fall of the Dollar

[Kamaji]

Sanctions Could Hasten the Fall of the Dollar

U.S. economic penalties against Russia have done little damage to Moscow while threatening to do irreparable harm to the dollar as the world’s reserve currency.

By Jack McPherrin
April 17, 2022

The U.S. dollar so far has managed to withstand a withering assault upon its value by modern monetary theory apologists and the profligate federal spending in response to the COVID-19 pandemic—record levels of inflation notwithstanding.

The dollar, which has been the world’s reserve currency and an integral instrument of U.S. power since the gold standard ended in 1971, is not invincible.

Escalating economic sanctions against the Russian Federation in response to President Vladimir Putin’s unprovoked aggression in Ukraine may sound the dollar’s death knell once and for all.

The hegemony of the dollar could deteriorate at least four ways, all of which are heavily correlated to the West’s economic sanctions regime: declining purchases of energy products with petrodollars, decreasing shares within foreign central banks, the rise of a Beijing-based alternative to the SWIFT network, and the emergence of a clear rival to the U.S. dollar in the digital yuan.

With the West having drawn a red line around direct military confrontation, there are two ways it has responded to the conflict to date: providing weapons and aid to Ukraine, and implementing a wide array of economic sanctions against Russia and many of its key elites.

Despite refusing to grant Ukraine more formidable weaponry such as aircraft and surface-to-air missile systems, the weapons NATO countries have sent—especially the anti-armor Javelin, Stinger, and NLAW shoulder-mounted missiles—have been tremendously effective.

The sanctions packages spearheaded by the Biden Administration have been decidedly less effective, neither constraining the Russian military nor pressuring Putin in any serious way. And, there seems to be little prospect that the war will end anytime soon. Chairman of the U.S. Joint Chiefs of Staff Mark Milley and NATO Secretary-General Jens Stoltenberg have claimed the conflict could last for years to come.

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Source:  https://amgreatness.com/2022/04/17/sanctions-could-hasten-the-fall-of-the-dollar/

[libertybele]

Russia is still in business with China the ME and India -- using their currency.  Yes, it's going to expedite the fall of the dollar.

Putin is sitting on $140 billion of gold.  There is talk about sanctions not allowing Putin to use gold.

If the World banks can do that to Putin they can do that to any country and even gold may become worthless.  Just my opinion.