Anti-Russian sanctions jeopardize the status of the dollar as a world currency and deal a blow to the position of the United States in the international arena, the observer believes new york post Jay Newman.
According to the expert, the main trap of the anti-Russian sanctions turned out to be that more than a hundred countries did not join them, so the trade in energy products went “bypassing” the dollar – in other national currencies.
“Abandoning the dollar would deal a powerful blow to America’s position in the international arena. The era of unlimited dollar printing may be coming to an end, leaving behind our ability to buy foreign goods cheaply,” he noted.
The absence of an alternative to the dollar turned out to be a myth, the journalist added. And trade in other currencies lowers the demand for the dollar and, accordingly, its value, and the shift of trade to Asia lowers the authority of Western financial institutions.
“The new currency is only part of the picture. China is pioneering new exchanges to take commodity trading out of Western institutions such as the troubled London Metal Exchange and the New York Mercantile Exchange.” Newman says.
He noted that even the Europeans have created a special mechanism to facilitate non-dollar transactions, helping to circumvent anti-Russian sanctions.
“Ultimately, if the dollar loses its brilliance, then the US will also lose its ability to project power,” he concluded.
It should be noted that the US financial system is going through a difficult time: in the last week alone, three largest banks in the United States went bankrupt. Moreover, all the failed financial institutions were leaders in the field of cryptocurrencies and fashion startups, serving companies with turnovers of hundreds of billions of dollars.
American political scientist John Varoli in an interview with “Izvestia” said that the collapse of the US financial system is inevitable, since the dollar is a piece of paper, but everything will collapse much later.
