14 mar 2023 3:25 p.m
In the face of anti-Russian sanctions, many countries are abandoning the dollar – this is the conclusion reached by an American journalist. This in turn could trigger a dollar collapse and thus a US debt crisis.
Anti-Russian sanctions have caused many countries to abandon the dollar, leaving Washington unable to leverage its power on the international stage, writes the columnist the New York Post, Jay Newman. The author verbatim:
“Abandoning the dollar would be a major blow to America’s position on the international scene. The era when it was possible to print unlimited quantities of dollars may be coming to an end, and with it our ability to buy foreign goods cheaply, belong to the past.”
As the observer notes, more than a hundred countries have not supported the West’s anti-Russian measures, leading to the emergence of economic coalitions that use other currencies to sell goods. Now the alleged lack of an alternative to the dollar that Western analysts spoke of has turned out to be illusory, it goes on to say:
“Once the dollar starts jeopardizing assets, alternative trading tools are sure to emerge. And they already exist,” writes Newman.
Russia’s President Vladimir Putin announced last summer the development of an international reserve currency based on a basket of BRICS countries, the US journalist recalls.
According to Newman, trade relations between countries using national currencies led to less demand for the dollar and consequently its declining value. As a result, according to the journalist, this will lead to a gradual increase in prices.
Because of the falling dollar, the US would lose its weight on the international stage and would also be at risk of falling into a “debt hole,” it said. To avoid this, Washington could reduce the number of strategic opponents and “put its own economy in order once and for all,” the columnist suspects.
Moreover wrote Reuters In early March, international sanctions against Russia had begun to undermine the dollar’s dominance in international oil trade. In February, the yuan overtook the US currency for the first time in Russian trading.
Western countries have faced rising energy prices and inflation due to sanctions against Moscow and a move away from Russian fuel. The increase in the price of fuels, especially gas, has made industry in Europe uncompetitive, which is affecting other sectors of the economy as well. In addition, the US and European countries have had to contend with record inflation, the highest in decades.
more on the subject – Russia as a mediator and shaper of the multipolar world order
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