Economist and Bitcoin (BTC) bull Jeffrey Tucker says that the US government has self-sabotaged the dollar’s world reserve currency status.
In a new interview with NTD, Tucker says that the US’ decision to seize tens of billions worth of assets from Russians marked a major shift in history when many realized that the US dollar may not be the safe haven it once was.
“I think actually that history will record that that was the turning point for the dollar. Since 1944, the dollar has been dominant, even after the end of the gold standard in 1971, the dollar has been dominant except as a paper currency. That has really changed with the attack on Russia and the sanctions, because a lot of those assets that were confiscated by the US – just arbitrarily – were denominated, of course, in dollars.
Now, if the US puts its political might behind other peoples’ willingness to hold its currency, and bludgeons them and attacks them and criticizes their policies and actually confiscates assets, then that just discourages people from holding the dollar.
So suddenly you have a situation where all these very powerful and important countries are saying ‘we need to do something about this. Let’s dump the dollar, we’ve got to move on to something else.’
And they can do it, it’s starting to happen.”
Tucker says that one of the most obvious effects of potential de-dollarization will be domestic inflation, which he says is probably not going away any time soon, and is already out of the Federal Reserve’s hands.
According to him, on a longer-term timeline, the US dollar is en route to being dethroned.
“[Inflation] is really sticky. It’s with us, it’s not going anywhere, the Fed hasn’t been able to reverse it. De-dollarization will affect us as we travel internationally. Right now the dollar is basically gold anywhere you travel. In the US, we all know this, and it’s kind of a luxury. That will definitely come to an end. It will also seriously hurt international business that’s domiciled in the US. The dollar is just not going to be king.”
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