Recently, economist Peter St. Onge issued a dire warning regarding the future of the US dollar and American living standards. St Onge claims widespread de-dollarization is not a concern for the future in a new market update.
The share of the dollar in global reserves is falling, from 73% in 2001 to 47% in 2021, according to the economist, who claims that a “stunning collapse” is already well under way.
St. Onge claims that American sanctions are now igniting the fire, pointing out that the US frozen $300 billion in currency from the Russian central bank after that nation started a war with Ukraine.
He thinks that as nations become more aware of the risk posed by sanctions, they will turn more and more away from the dollar and toward alternative stores of value like gold and the euro.
Additionally, 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 course, we will experience skyrocketing inflation, a catastrophic decline in the standard of living in America, and the US slipping off the global stage. Not by choice, but out of necessity; everything was entirely our own doing…
We lost roughly twice the amount of the Chinese yuan’s market share as the dollar’s share fell by 8 percentage points in a single year to just 47%. And if things continue this way, the U.S. dollar would be obsolete in about six years.
As Argentina becomes the most recent nation to switch from using the US dollar to the Chinese yuan, a warning is issued.
According to Reuters, the economically precarious country will now pay for Chinese imports in yuan rather than dollars.
BRICS, a group of strategically aligned countries, is reportedly working to develop a new currency that is independent of the US dollar.
BRICS, which stands for Brazil, Russia, India, China, and South Africa, is an alliance that at least six more nations are considering joining.