I would say that it has something to do with the dedollarization that’s growing around the east, but the drop precedes it, so yeah the problem goes deep
I suspect that’s a big part of it. With dollar based economy shrinking there’s less demand for the dollar. That means when the US issues more currency there’s less of a market to absorb it. Specifically, oil being sold outside the dollar is a very significant development. Pretty much every modern economy needs oil to operate, and before you had to get dollars in order to buy oil. Nowadays that’s no longer the case.
The US made an incredible strategic blunder by freezing Russian foreign assets because it shows the whole world that western financial system is not safe. If a country starts making decisions that go against western interests then the west will steal their assets, and that makes it impossible to have sovereignty. I suspect that’s a huge factor driving dedollarization right now.
I would say that it has something to do with the dedollarization that’s growing around the east, but the drop precedes it, so yeah the problem goes deep
I suspect that’s a big part of it. With dollar based economy shrinking there’s less demand for the dollar. That means when the US issues more currency there’s less of a market to absorb it. Specifically, oil being sold outside the dollar is a very significant development. Pretty much every modern economy needs oil to operate, and before you had to get dollars in order to buy oil. Nowadays that’s no longer the case.
The US made an incredible strategic blunder by freezing Russian foreign assets because it shows the whole world that western financial system is not safe. If a country starts making decisions that go against western interests then the west will steal their assets, and that makes it impossible to have sovereignty. I suspect that’s a huge factor driving dedollarization right now.