Commentary
The Biden administration is quickly turning into “Don Quixote” regarding the U.S. dollar.
Amid a global secular shift away from the U.S. dollar (theoretical) and U.S. political influence (actual), the sentiment out of Washington is more akin to “what, me worry?”
Mainstream economists in the United States insist that the U.S. dollar is irreplaceable, and the global markets cannot replace the dollar as a medium of trade settlement. It’s difficult, true, but not impossible.
We’ve previously discussed in this space that the West’s sanctions on Russian oil could spur the creation of a new global trade settlement regime backed by commodities and gold. But we underestimated the causation, because there’s more involved than just sanctions on Russia….