President Joe Biden has announced the first round of economic sanctions on Russia as tensions in Ukraine continue to mount. The sanctions came in response to an announcement by Russian President Vladimir Putin recognizing two breakaway republics in Ukraine and his decision to send troops into those regions.
Sanctions are meant to punish Russia, but in his podcast, Peter Schiff explained how these economic moves could also impact the US dollar and create even more inflation.
Is the US losing its grip on the world? And could the dollar ultimately be dethroned from its spot as the world’s reserve currency?
We’ve reported extensively on countries working to undermine dollar hegemony and reduce the United States’ ability to weaponize the dollar as a foreign policy tool, along with the global gold rush on the part of central banks. Last week, Peter Schiff appeared on RT, along with former Pentagon official Michael Maloof, to talk about the world’s growing frustration with America. Peter said countries worldwide are ready to dump the US.
What do you do if one of your biggest trading partners is embroiled in a trade war and the other faces economic sanctions?
That’s exactly what Kyrgyzstan’s central bank is doing.
Earlier this month, US Treasury Secretary Steven Mnuchin threatened China, saying the US would “put additional sanctions on them and prevent them from accessing the US and international dollar system” if they don’t go along with the most recent round of sanctions slapped on North Korea. We argued that the threat may be meaningful, but it also might be empty.
In a recent article published on the Mises Wire, Ryan McMaken added another layer of analysis, arguing that if the US were to follow through on the threat, it would imperil the US dollar. McMaken’s reasoning dovetails with a point we’ve made more generally about Trump’s penchant for tariffs – that they will undermine the dollar. Of course, that’s good for gold.
