{"id":346990,"date":"2023-03-31T02:00:29","date_gmt":"2023-03-31T06:00:29","guid":{"rendered":"https:\/\/www.sgtreport.com\/?p=346990"},"modified":"2023-03-30T05:13:22","modified_gmt":"2023-03-30T09:13:22","slug":"de-dollarization-just-got-real","status":"publish","type":"post","link":"https:\/\/www.sgtreport.com\/2023\/03\/de-dollarization-just-got-real\/","title":{"rendered":"De-Dollarization Just Got Real"},"content":{"rendered":"

by John Rubino, John Rubino<\/a>:<\/em><\/p>\n

\"\"<\/p>\n

Since the 1970s it\u2019s been virtually impossible for a country to function without access to US dollars. And Washington maintained this highly-favorable status quo by putting various kinds of pressure \u2014 from sanctions to election theft to outright invasion \u2014 on anyone who stepped out of line.<\/p>\n

This weaponization of the world\u2019s reserve currency has, not surprisingly, created resentment in a lot of foreign capitals. And after a long gestation period, that resentment is now erupting into a rebellion against dollar hegemony. Among the big recent events:<\/p>\n

TRUTH LIVES on at\u00a0https:\/\/sgtreport.tv\/<\/a><\/p>\n

The BRICS coalition has become the hottest ticket in geopolitics.<\/strong>\u00a0Brazil, Russia, India, China, and South Africa (the BRICS) have been toying with the idea of forming a political\/monetary counterweight to U.S. dominance since 2001. But beyond some aggressive gold buying by Russia and China, there was more talk than action.<\/p>\n

Then the floodgates opened.\u00a0<\/strong>Whether due to the pandemic\u2019s supply chain disruptions, heavy-handed sanctions imposed by US-led NATO during the Russia-Ukraine war, or just the fact that de-dollarization was an idea whose time had finally come, the BRICS alliance has suddenly become the hottest ticket in town. In just the past year, Argentina, Indonesia, Saudi Arabia, Iran, Mexico, Turkey, the United Arab Emirates (UAE), and Egypt have either applied to join or expressed an interest in doing so. And new bilateral trade deals that bypass the dollar are being discussed all over the place.<\/p>\n

Combine the land mass, population, and natural resources of the BRICS countries with those of the potential new members and the result is more or less half the world. And now things are getting real:<\/p>\n

China brokers a peace deal between Saudia Arabie and Iran<\/strong>, two bitter historical enemies who want to join the BRICS alliance but can\u2019t if they\u2019re in an undeclared war. Should they stop competing and start cooperating they could dominate the Middle East and raise China\u2019s clout in the region, at the petrodollar\u2019s expense. An example of the press coverage:<\/p>\n

Eurasia\u2019s geo-economic integration took a great leap forward as a result of the\u00a0Iranian<\/a>\u2013Saudi<\/a>\u00a0rapprochement<\/a>, which unlocks the Gulf Cooperation Council\u2019s (GCC) trade potential with Russia and China. Its wealthy members can now tap into two series of Iranian-transiting megaprojects in one fell swoop through this deal, with the\u00a0North-South Transport Corridor<\/a>\u00a0(NSTC) connecting them to Russia while the\u00a0China-Central Asia-West Asia Economic Corridor<\/a>\u00a0(CCAWAEC) will do the same vis-\u00e0-vis China…<\/p>\n

\u2026Only two weeks after Saudi Arabia announced an effort to establish diplomatic ties to Iran in a deal mediated by China, more news surfaced that Saudi Arabia was also planning to reopen its embassy in Syria for the first time in over a decade.\u00a0 Rumors are swirling that Iran, Saudi Arabia and Syria are\u00a0on the verge<\/a>\u00a0of geopolitical and economic agreements that sidestep the US.<\/p><\/blockquote>\n

\n
\n
\n\"\"<\/picture>\n
<\/div>\n<\/div>\n<\/figure>\n<\/div>\n

 <\/p>\n

Russia and India agree to trade oil for rupees.\u00a0<\/strong>Russia is now India\u2019s largest oil supplier, with 35% of that massive, growing country\u2019s imports. The U.S. is not happy about this \u2014 but India doesn\u2019t seem to care. From a recent article:<\/p>\n

Even the US itself seems to have finally accepted that it can\u2019t reverse this trend, which is evidenced by former Indian Ambassador to Russia Kanwal Sibal recently telling\u00a0TASS<\/a>\u00a0that \u201cLately, the discourse from Washington has changed and India is no longer being asked to stop buying oil from Russia. In a recent visit to India, the US Treasury Secretary actually said that India can buy discounted oil from Russia as much as it wants so long as western tankers and insurance companies are not used.\u201d<\/p><\/blockquote>\n

African leaders travel to Moscow.\u00a0<\/strong>Representatives of 40 African nations traveled to Rissia for the Second International Parliamentary Conference \u201cRussia \u2013 Africa in a Multipolar World.\u201d According to the press release, the attendees:<\/p>\n

\u2026 discussed the potential for collaboration across a range of sectors, their contribution to the African continent\u2019s economy and security, and their work in the realms of science and education, politics, and techno-military area.<\/p>\n

During the conference, the African continent was invited to work together to form a new multipolar world order. This is especially important given the significant human resources of Africa, which is home to more than 1.5 billion people and has enormous mineral reserves in its soil.<\/p><\/blockquote>\n

Brazil and Argentina announce a common currency.\u00a0<\/strong>In February, the two dominant Latin American economies announced plans for a common currency called the \u201csur\u201d for use in bilateral trade. South America is a big, resource-rich place with numerous grudges against its intrusive northern neighbor. So a de-dollarization movement there, while not as immediately consequential as what\u2019s happening in the Middle East or Asia, is both plausible and potentially serious for the dollar.<\/p>\n

 <\/p>\n

Lower Dollar, Higher Gold<\/h4>\n
\n
\n
<\/div>\n<\/div>\n<\/div>\n

Even in an emerging multi-polar world, there\u2019s no obvious replacement for the deep, liquid US capital markets. So the dollar won\u2019t disappear from global trade. However:<\/p>\n