The Big Bear in the East has had enough and seems to be going for the throat economically.
🚨 "Global currency reserves are at $7.1 trillion and 2.5 trillion euros now.
— Stack Hödler (@stackhodler) June 23, 2022
These reserves are devalued at an annual rate of about 8 percent.
Moreover, they can be confiscated or stolen any time if the United States dislikes something in the policy of the states involved."
Many in the West may not want to admit it, but the monetary charade is up. The days of the US wielding the power of the reserve currency of the world as a tool for economic bullying are numbered at best and already over at worst. Nothing makes this clearer than a speech given by Vladimir Putin earlier this week in which he called out the bullshit. The Big Bear in the East has had enough and seems to be going for the throat economically.
No matter how you feel about Vladimir Putin (I'm not really a big fan of the guy myself) it is impossible to deny that he makes a lot of sense here. He is simply echoing something we've been saying since the US and other UN allies sanctioned Russia at the end of February.
We’ll look back in history and pinpoint this week as the final nail in the coffin of the USD as the reserve currency of the world.
— Marty Bent (@MartyBent) February 27, 2022
You may not like Vladimir Putin or Xi Jingping or some other dictator around the world, but you'd have to be a fool to deny that the economies that they manage are essential to those of us living outside of their borders. The last two years have made that more than evident in regards to China and the last six months have done the same for Russia.
Unless the US and Europe find a magic genie bottle, rub it, and find a genie who is willing and able to make critical manufacturing and energy infrastructure materialize out of thin air in an instant, there is no way for the West to separate itself from these economies without major pain. And if you're reading this in the US or Europe, that pain may be hitting you directly in the nether regions as you read this. You're feeling that pain partly because of nonsensical energy and monetary policy from the government and Federal Reserve and partly because of the fact that Russia has decided to pick its ball up and go home.
By picking up its ball, going home, hanging up its coat, and peering out the window with a nice cup of tea in hand and a slight grin as the world burns outside, Russia has become extremely emboldened. Emboldened to the point at which Vladimir Putin feels confident enough to attempt to throw haymakers at the legitimacy of the dollar reserve system.
I'll simply echo what I said toward the end of February; the world will look back at the week of February 26th, 2022 as the week the dollar's reign as reserve currency of the world ended. The question that remains is, what comes next?
My bet is on bitcoin. Will not explain.
Final thought...
Summer sneezes are weak af.
