economyFrance
The First Pushes to De-Dollarize: Actions, Solution, and Global Impacts #43
In a previous podcast, I suggested two triggers that would lead the world to de-dollarize. In the weeks since I posted it, both became reality. In this podcast, I discuss the actions that countries are taking, the potential solution to establish an altern
Published by Dr Jiulin Teng on 31 Mar 2022
In a previous podcast, I suggested two triggers that would lead the
world to de-dollarize. In the weeks since I posted it, both became
reality. In this podcast, I discuss the actions that countries are
taking, the potential solution to establish an alternative system, and
the global impact of de-dollarization.
Actions:
a. Eurasian Economic Union + China start investigating the setup of an
alternative international monetary system
b. Saudi Arabia studies the possibility of selling oil in Chinese Yuan
c. Russia proposes to sell oil to India in Rupees
Solution:
I suggest a global trade system based on reserves of commodities and
gold, without a fiat currency acting as the anchor. Bi-lateral trades
can be settled in a range of major currencies.
I suggest Hong Kong to be the candidate for a clearing house for this
new monetary system.
Global Impacts:
1. Asset price collapse, notably stocks, bonds, and real estate
2. Difficulties in global trade lasting 2 to 5 years
3. Euro disappears in 2 to 5 years
4. Social tension in the US becomes a real issue that must be addressed
