De-Dollarization Escalates Amid US ‘Economic Warfare’ and ‘Error-Fraught’ Policies, Economist Says

Economist Peter C. Earle says de-dollarization has begun, emphasizing that “It’s not just the conscription of the dollar in economic warfare, but increasingly error-fraught monetary policy regimes that are driving various interests away from the greenback.” He described: “By weaponizing dollar dominance and permitting expanding mandates to disorient U.S. monetary policy, the dollar’s fate as the lingua franca of world commerce over the long haul may already be sealed.”

Rising De-Dollarization Trend

Economist Peter C. Earle wrote an opinion piece, titled “De-dollarization Has Begun,” published by the American Institute of Economic Research last week.

He explained that “The profound economic disruption experienced by Iran, and more recently Russia, after being evicted from dollar-based trading systems like SWIFT … have led many nations to consider imminent contingency plans,” elaborating:

It’s not just the conscription of the dollar in economic warfare, but increasingly error-fraught monetary policy regimes that are driving various interests away from the greenback.

The monetary policy response to the 2008 crisis and the Covid outbreak caused unpredictable fluctuations in the dollar’s value, the economist detailed. The pandemic triggered a massive expansionary response in 2020, followed by an initial disregard for the inflation outbreak that subsequently hit four-decade highs “before an aggressive contractionary shift in policy that destabilized precarious financial institutions was implemented,” he noted.

Earle referenced efforts by several countries in attempting to reduce their reliance on the U.S. dollar, including the agreement between China and Brazil to settle trades in local currencies. In addition, the BRICS nations (Brazil, Russia, India, China, and South Africa) are reportedly working to create a new currency.

According to the economist, cryptocurrencies, central bank d

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Author: Kevin Helms

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