Dollar doubts continue to grow, threatening the greenback’s perch at the top of the global financial system.
Last week, Kenyan President William Samoei Ruto suggested that African nations should shift away from using the dollar in intercontinental trade.
Gold had dropped by over $100 in the last two weeks. Meanwhile, the dollar rose to a 7-week high on May 17. If you’re thinking that this looks a lot like how gold and the dollar moved at the height of the Federal Reserve’s inflation fight, you’re right. That’s because the central bankers at the Fed have stepped up the hawkish rhetoric in the last couple of weeks increasing expectation that interest rates will stay higher for longer.
But talk is cheap. The real question is how will the Fed respond when the bottom drops out of the economy.
In a surprise move earlier this month, OPEC announced further oil production cuts of about 1.16 million barrels per day. Analysts projected the cuts could raise the price of oil by $10 per barrel. Peter Schiff recently appeared on NewsMax’s Wake Up America and explained why these production cuts will further complicate the Federal Reserve’s efforts to fight price inflation, and more broadly, how global moves like this and others undermine the dollar.
The dollar may be king, but its throne is getting a little tippy. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks about the slow but steady erosion of the dollar’s global dominance and the possible ramifications. He also explains how Federal Reserve monetary policy is like poison.
China and Brazil recently finalized a trade deal in their own currencies completely bypassing the dollar, but that’s not the only bad news for the world’s reserve currency.
Last week, a Russian official announced that the BRICS nations are working to develop a “new currency,” yet another sign that dollar dominance is waning.
More bad news for the dollar.
Last week, China and Brazil announced a trade deal in their own currencies, completely bypassing the dollar.
This represents another small shift away from dollar dominance.
Peter Schiff appeared on NTD News to talk about the bank bailout and the March Federal Reserve meeting. During the conversation, Peter explained that everybody is going to pay for these bailouts because they will ultimately devalue the dollar as inflation skyrockets.
Peter appeared on Fox Business Claman Countdown to talk about the recent bank failures and the ensuing government bailouts. During the interview, they discussed how to invest in the current environment. Peter said that right now, gold is undervalued, but investors will bid up the price much higher when they come to terms with the reality of inflation.
Every government policy has consequences – some intended and some unintended.
There is at least one serious unintended consequence of the economic sanctions levied against Russia after its invasion of Ukraine – an erosion of the US dollar dominance.