Failure of American sanctions leads to dedollarisation

 The usage of the US$ as a reserve currency has fallen 40% over the last two decades and that fall is no accident. By right it should have risen with all the money printing going on over the years and dispersed worldwide, exporting US inflation globally. From a high of 72%, it has gone down to 58% today. The USA can try all it can to preserve its dominance, but it is an exercise in futility.

The UAE and China just concluded a 'not less than 27 years gas deal' to be settled in Yuan, which is a major blow to the US$. Such deals will proliferate, with the Yuan increasing in demand. Sure, the effect may still be minimal and the USA can brush aside this as not highly significant, but over time, and with more of such deals, it is nothing to be sniffed at. As they say, slow and steady wins the race.

The rise of China followed the same pattern of slow and steady, with little boasting like some other country. The USA looked down on China, had the mentality that China could never rise with laundrymen and cooks just doing mundane stuffs, and became hysterical when they found out the truth. Now trying desperately to prevent China from overtaking them.

De-dollarision with the onset of the Ukraine war has escalated beyond imagination. The seizure of the Russian Central Bank reserves is the tipping point, and going forward it will no longer be anything like an average of an annual 2% fall in countries holding US$ as reserves. The switch to gold, the dumping of US Treasuries are not one time events or accidental, but will continue unabated and at a faster rate.

China is not preparing with intention for the Yuan to overtake the US$ as the global reserve currency. China knows that doing that a global reserve currency comes with plenty of responsibility and demands. China just wants to globalise the usage of the Yuan, to provide countries with an alternative to the US$ and makes USA sanctions toothless, as opposed to less teeths to bite today.

Countries now know how best to deal with sanctions. What sanctions are the West talking about when the EU is still buying Russian energy on the open market at much higher prices, providing China, India and Saudi Arabia a lucrative deal to make easy money at the expense of the Europeans.

The USA/EU is planning more sanctions on Russia and also Myanmar. What that will achieve is make the Myanmar people suffer more, not the leaders. How many countries have fallen to pieces under sanctions, or the people rising up against their leaders. Common sense will tell those people, whose country had been sanctioned, that it was the USA that caused all their misery. Cuba and North Korea were under sanctions for 60 long years. Did they fall? Did the people revolt? Did the Russian people revolt after several years of punitive sanctions?

Russia is a resource rich country, with energy, raw elements and grains not in shortage, and ordinary people's lives are hardly affected with those Western sanctions. Western businesses can just move out, but there are Chinese, Indians and Russian citizens raring to take over. Even fast food is not a problem to being taken over. Nothing secret about making burgers or frying chicken wings, which ordinary Russians would have mastered over the years working in such outlets. The only chaos in Russia were all created by traitors to the country, the opposition bought over by USA funded NGOs, and who are now conducting terrorism and distabilising the country. 

Anonymous