Jeffrey Tucker says the U.S. dollar is at a turning point as the movement away from the dollar is gaining strength.” He warns that “the dollar will never be king,” adding that recent events will be recorded in history as “the turning point for the dollar.
Jeffrey Tucker talks about de-dollarization and turning points for the U.S. dollar
Author and publisher Jeffrey Tucker, who worked for many years with former U.S. Congressman Ron Paul and the Mises Institute, shared his views on the growing trend of de-dollarization and its impact on the U.S. economy in an interview with NTD News on Wednesday.
When asked if the “de-dollarization” is actually happening and when we will see its effects, he explained that the U.S. has been dominant in global currency markets since 1944 and can influence global policy. However, referring to the U.S. government’s attacks and sanctions against Russia after the outbreak of the Russian-Ukrainian war, he opined:
History will record that it was a turning point for the dollar; since 1944, the dollar has been dominant, even after the end of the gold standard in 1971 … it was really changed by the attacks and sanctions against Russia.
“When the United States puts political power behind the willingness of other countries to hold their currency, to condemn other countries, to attack them, to criticize their policies, to actually confiscate their assets, it only discourages people from holding dollars. So all of a sudden we have a situation where very powerful and important countries are saying, “We need to do something about this. Let’s get rid of the dollar. Let’s dump the dollar and switch to something else. They can do it, and it is starting to happen,” he elaborated.
Noting that the BRICS countries (Brazil, Russia, India, China, and South Africa) are beginning to “alienate” the U.S. dollar, he stressed that this could affect the U.S. debt situation and could really hold back the Federal Reserve.
Inflation is “sticky”
On how a de-dollarization would affect Americans in terms of a possible recession, Tucker explained: “The domestic impact is not going to be as pronounced as people think it will be. The big thing we have to worry about domestically is domestic de-dollarization, or inflation.”
He emphasized that inflation is “sticky” and added: “It’s with us. It’s not going anywhere; the Fed has not been able to reverse it.” He further noted that the U.S. dollar has lost 15 cents in value over the past two and a half years.” It’s inflation,” he exclaimed, emphasizing that it is “a direct result of the Fed’s mismanagement.”
Tucker warned: “The effects of the de-dollarization will also be felt when we travel internationally. Right now, the dollar