Economist Warns of ‘Catastrophic’ Fall in American Living Standard — Elon Musk Weighs in on De-Dollarization, US Dollar Weaponization

Economist Peter St Onge has warned that U.S. dollar weaponization volition pb to “soaring inflation, a catastrophic fallen American modular of living, and a U.S. that falls disconnected the satellite stage.” Commenting connected the economist’s warnings, Tesla and Twitter CEO Elon Musk weighed successful connected de-dollarization.

De-Dollarization Happening Faster Than People Realize, Says Economist

Economist Peter St Onge warned astir the dire consequences of weaponizing the U.S. dollar successful a video helium posted connected Twitter Monday. St Onge is simply a Research Fellow and the Mark A. Kolokotrones Fellow successful Economic Freedom astatine the Heritage Foundation. Before joining the Heritage Foundation, helium was a Fellow astatine the Mises Institute, a Senior Fellow astatine the Montreal Economic Institute, and an Assistant Professor of International Trade and of Marketing astatine Taiwan’s Feng Chia University.

Citing a erstwhile Morgan Stanley analyst, Stephen Jen, stating that the U.S. dollar has already suffered a “stunning collapse” and is losing its reserve currency presumption astatine an “alarming pace,” St Onge stressed:

De-dollarization is happening faster than radical realize.

“The dollar stock went from 73% successful 2001 to 55% successful 2021, astatine which constituent it fell disconnected a cliff, losing marketplace stock 10 times faster,” the economist detailed. “The dollar plunged 8 percent points successful stock successful a azygous twelvemonth to conscionable 47% truthful we mislaid astir treble the full stock of the Chinese yuan. And astatine that pace, the U.S. dollar would beryllium eclipsed successful astir 6 years.”

He added: “Separate information from cardinal banks astir the satellite corroborate that aft decades of complacency, the scenery is shifting.”

Effects of Sanctions connected USD

St Onge went connected to explicate that what severely affected the USD successful 2022 was sanctions. He noted that past year, the U.S. froze astir $300 cardinal successful Russian cardinal slope assets.

“These were Russia’s sovereign dollars. They and everybody other successful the satellite thought of them similar gold. This was thing we hadn’t adjacent done during the Cold War — during the tallness of the Cold War with blistery proxy wars each implicit the satellite — due to the fact that we were tally by adults. Why did Biden bash it? The extremity was to origin slope panics and clang the Russian system — possibly to acceptable disconnected wide unemployment and civilian unrest. Of course, it backfired, instead, sending countries astir the satellite successful panicked formation from the dollar … and truthful overnight, the U.S. dollar went from the world’s rock-solid store of worth to a governmental shot held hostage to whichever lobbyist oregon activistic caught Joe Biden’s oculus this week,” helium opined.

The economist concluded:

If the U.S. dollar does proceed connected this path, we volition spot soaring inflation, a catastrophic fallen American modular of living, and a U.S. that falls disconnected the satellite signifier — not by prime but by necessity — each of it, 100% our ain making.

Numerous individuals person expressed akin warnings. A increasing fig of countries are besides ramping up efforts to shift away from utilizing the U.S. dollar successful commercialized settlements. The Syrian overseas minister said past week that the U.S. imposes sanctions to bargain targeted nations’ assets and support them nether its hegemony.

Commenting connected St Onge’s video, Tesla and Twitter CEO Elon Musk tweeted:

If you weaponize currency capable times, different countries volition halt utilizing it.

Do you hold with Peter St Onge and Elon Musk astir the consequences of weaponizing the U.S. dollar? Let america cognize successful the comments conception below.

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