According to economist and Bitcoin (BTC) bull Jeffrey Tucker, the US government has destroyed the dollar’s standing as an international reserve currency. Tucker argues in a recent interview with NTD that the United States’ move to seize tens of billions of dollars in assets from Russians represented a big turn in history when many understood that the US currency may no longer be the safe haven it once was.
“I believe history will record that as the turning point for the dollar.” The dollar has been dominating since 1944, and even after the collapse of the gold standard in 1971, the dollar has remained dominant except as a paper currency. That has changed dramatically since the onslaught on Russia and the sanctions, because many of the assets stolen by the US – unfairly – were denominated in dollars.
Now, if the US puts its political weight behind other people’s willingness to retain its currency, and bludgeons, assaults, criticizes, and actually confiscates assets, it merely discourages people from holding the dollar. So now you have a scenario in which all of these extremely strong and influential countries are saying, “We need to do something about this.” Let’s get rid of the dollar and go on to something new.’
And they can accomplish it; it’s already happening.” Tucker believes that one of the most visible consequences of probable de-dollarization would be domestic inflation, which he believes is unlikely to abate anytime soon and is currently out of the Federal Reserve’s control.
On a longer time horizon, he believes the US dollar is on its way to being dethroned. 3:26″Inflation is extremely sticky.” It’s still with us, and the Fed hasn’t been able to reverse it. De-dollarization will have an impact on our foreign travel. Right now, the dollar is like gold everywhere you go. We all know this in the United States, and it’s a bit of a luxury. That will most certainly come to an end. It will also have a significant impact on foreign companies based in the United States. The dollar will not reign supreme.”