Morning Wire End of U.S. Dollar Dominance | Saturday Extra
Apr 8, 2023
John Rubino, an expert on economy and investing and creator of Rubino Substack, delves into the emerging trend of countries abandoning the U.S. dollar in favor of the Chinese yuan. He discusses the recent Brazil-China agreement, highlighting its potential to reshape global currency dynamics. The conversation touches on risks of dollar depreciation and the challenges facing the U.S. economy as reliance on the dollar shifts. Rubino also addresses the implications for inflation and governmental responses in this evolving financial landscape.
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Shift from the U.S. Dollar
- Several nations are shifting away from the U.S. dollar in trade, favoring the Chinese yuan.
- This has significant implications for the U.S. economy and global financial stability.
Transition Speed and Impact
- The speed of the transition away from the dollar is uncertain, depending on logistical and political factors.
- While the dollar's dominance may decline, it's unlikely to disappear entirely.
Counteracting the Trend
- The U.S. could improve its international relations by being less of a bully.
- However, the U.S. is likely to continue using sanctions and other forceful measures.