MoneyWeek/John Stepek/4-5-2022
“There’s been a lot of excitement (if that’s the right word) over the idea that Russia is no longer accepting dollars as payment for its energy. Overall, it would prefer gold (“hard currency”) or roubles, but it’ll take most other national currencies as long as they’re not greenbacks. Is this the beginning of the end for US dollar hegemony?The answer is ‘no.’”
USAGOLD note: Stepek goes on from there to offer some very cogent arguments why the dollar is unlikely to be replaced anytime soon as the world’s primary reserve currency, the most salient of which is that no other currency can adequately serve as an alternative. That argument, at the same time, does not stand in the way of further debasement of the dollar. In fact that debasement is gaining momentum even as you read this note.
Sources: St. Louis Federal Reserve [FRED], U.S. Bureau of Labor Statistics
