Two for the Price of One: De-dollarise and Reduce American Hegemony

Greetings,

Two for the Price of One: De-dollarise and Reduce American Hegemony

As America’s influence in the world slowly declines, the de-dollarisation that goes along with it will benefit Russia and the rest of the world

Russia has made no secret of the fact that it would like to see the rouble more widely used, and a reduction in the use of US dollars.

Putin and Medvedev have many times referred to a desire to see the rouble as a reserve currency. In order for this to become more of a reality, Moscow needs to continue its development as a regional financial hub.

The managed decline of American hegemony via economics needs to be continued carefully to avoid a war. Thankfully, bankrupt America doesn’t have the capability to effectively win a large war any more. What we see is the lower-cost route of regime changes, funded coup d’états and constant meddling abroad.

The world needs to think how to stop America’s continual world terrorism. The peaceful way to do this is to continue to actively de-dollarise; which has been happening for the last decade anyway. Send the dollars back to America and you create inflation there which erodes America’s economic power. It is a better option than bombs.

Last year, even Nigeria converted $4.3bn of its reserves from dollars to Chinese yuan. Kingsley Moghalu, the deputy governor of Nigeria said, “The future of international economics and trade will shift in large part to business with and by China”. You know there is change in the air when even Africa is dumping the greenback.

Many readers here will remember when the dollar was widely used in Russia. It isn’t used anything like as much any more. The rouble has been stronger and pretty stable for some time; excepting the recent blip caused by sanctions from which it will recover.

Against the British pound, the rouble has been historically more stable than the dollar. For the last decade or so – before the Ukraine crisis and sanctions – the rouble mostly hovered between ₽45 and ₽55 to the pound.

During the same period, the dollar has swung between $1.36 and $2.11 to the pound, making it significantly more volatile than the rouble. Even the euro has lurched between €1 and €1.50 to the pound. That is significant volatility. Volatility we didn’t see in the rouble.

One reason America has pushed so hard for sanctions against Russia, was in an attempt to destabilise the rouble and hinder Russia’s financial development. However, they didn’t reckon on Russia’s ability to substitute almost any import from national manufacture. Nor did they reckon on Russia’s newly-created National Card Payment System (co-badging with Japan’s JCB). As de-dollarisation continues, the impact of sanctions will become less noticeable across the whole Russian economy…..more here

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