Recently, economist Peter St. Onge issued dire warnings about the future of the US dollar and America’s standard of living. St Onge claims widespread de-dollarization is not a future issue in new market updates.
The dollar’s share of global reserves is falling, from 73% in 2001 to 47% in 2021, according to economists, who claim that the “stunning collapse” is already well under way.
St Onge claims that American sanctions are now fueling the fire, pointing out that the US froze $300 billion of currency from Russia’s central bank after it started a war with Ukraine.
He thinks that as countries become more aware of the risks posed by sanctions, they will move further away from the dollar and towards alternative stores of value such as gold and the euro.
Moreover, according to St. Onge, the average American’s quality of life will completely collapse if the trend is not reversed.
If the US dollar stays on this path, we will have skyrocketing inflation, a catastrophic decline in living standards in America, and the US slipping off the global stage. Not by choice, but by necessity; everything is entirely our own doing…
We lost roughly twice the amount of share of the Chinese yuan market as share of the dollar fell 8 percentage points in one year to just 47%. And if things continue like this, the US dollar will become obsolete in about six years.
As Argentina became the latest country to switch from using the US dollar to the Chinese yuan, a warning was issued.
According to Reuters, the economically precarious country will now pay for Chinese imports in yuan rather than dollars.
The BRICS, a strategically aligned group of countries, are reportedly working to develop a new currency independent of the US dollar.
BRICS, which stands for Brazil, Russia, India, China, and South Africa, is an alliance that at least six countries are considering joining.