It is probably also a question of wording. Collapse, decline, loss of meaning? All these words are currently in circulation thanks to bestselling author Marc Friedrich in his latest video. He talks about the US Dollar. And ohhh miracle, we will now say, he sees the previous world currency more than critical. In his current video, he refers to Vladimir Putin’s latest statements on the US Dollar.
Putin on the dwindling importance of the U.S. Dollar
Vladimir Putin sees it this way (is shown in the video from minute 1:10 with subtitles). The US Dollar has enjoyed great confidence worldwide as the world’s leading currency. However, the USA is now using the US Dollar as a political instrument. Putin talks about the sanctions against Russia, Iran and Venezuela. The use of the US Dollar by these countries has been restricted. Many countries would turn away from using the US Dollar as a reserve currency. Confidence in the Dollar is being undermined.
In his further remarks, Marc Friedrich also discusses the fact that numerous central banks are massively expanding their holdings of physical gold, especially this year. Countries like Russia, etc. would exchange their US Dollar holdings for gold. They would try (according to our note) to make themselves independent of the Dollar. Moreover, gold is still something tangible and not a paper currency that is not covered by tangible assets. According to Marc Friedrich, gold will also experience a “golden age” in the future.
A long and creeping process
Our note: The decline of the US Dollar has been conjured up so many times in recent years. So far it has failed to materialize. The Euro or perhaps some new crypto currency could be alternatives. But probably not today, and not tomorrow either. It may be that the US Dollar, as mentioned above, is creepingly losing its significance. This is because the USA has probably unintentionally frightened many governments with its numerous sanctions, which do not want to end up like Iran or Venezuela, in the stranglehold of US sanctions.
All of a sudden we realize how dependent we are on payments in US Dollars and directly/indirectly from the USA. In the long run we try to get rid of this dependence. Marc Friedrich and Vladimir Putin might be right. But such processes drag on for a long time. There is also no fixed date when people scream out loud and say “now is the time”. It is a creeping long process.