**From Dollar Woes To Debt Denial: The USA Is Screwed**
From Dollar Woes To Debt Denial: The USA Is Screwed
_Authored by Matthew Piepenburg via GoldSwitzerland.com,_ (https://goldswitzerland.com/dollar-woes-to-debt-denial-the-usa-is-screwed/)
**De-Dollarization: Downplaying the Obvious**
De-Dollarization is a real, all too real trend, though it is both fascinating and disturbing to see what is otherwise so obvious being deliberately down-played, excused or ignored from the top down.
But then again, the laundry list of ignored facts and open lies from the top down to hide hard truths in everything from inflation data to recessionary debt traps is nothing new.
Instead, such propaganda replacing blunt transparency is the new normal (and classic trick) for all historical endings to debt-soaked (and failing) nations/systems and their fork-tongued (i.e., guilty) policy makers.
**Slow & Steady**
De-Dollarization, of course, is a gradual rather than over-night process.
Its origins stem from 1) years of exporting USD inflation overseas (to the painful detriment of friend and foe alike) and 2) the insanely stupid decision to **weaponize the world reserve currency** (https://goldswitzerland.com/even-a-weaponized-dollar-wont-stop-golds-historical-turning-point/) (i.e., USD) subsequent to a border war between two local tyrants in the Ukraine.
Whether or not you buy into the Western “media’s” narrative which categorizes Putin as Hitler 2.0 and Zelensky as a modern George Washington, the weaponization of the USD (and freezing of FX reserves) has made an already dollar-tired globe even more distrusting of Uncle Sam’s currency and IOUs.
This trend is confirmed by the profound dumping of USTs throughout 2022 and the undeniable trend among the BRICS (and the 36 other nations) to deliberately seek bilateral trade agreements and settlements _outside_ of the USD.
Furthermore, with Saudi talking to China and Iran, and with China talking to Mexico, Russia and just about everyone else, it’s fairly clear that a move away from the once sacred petrodollar (Pakistan now seeking Russian oil in Yuan) is no longer just the fantasy of conveniently eliminated folks like Saddam Hussein or Muammar Gaddafi…
As I discussed **here** (https://goldswitzerland.com/so-many-open-signs-of-financial-disaster-ahead-and-gold-working/) and **here** (https://goldswitzerland.com/gold-oil-global-currencies-entering-a-watershed-moment/), the petrodollar is under threat, which means longer-term demand for the USD is equally so.
**But the USD Still Has Legs—For Now…**
That said, there’s also no denying that the USD is still very strong, very important and very much in demand.
After all, and despite welching in 1971 on its 1944 promise to be gold-backed, the USD is still the world reserve currency.
With over 40% of global debt instruments denominated in Greenbacks and over 60% of the reservoir of global currencies composed of USDs, this reserve status (and hence forced demand) aint going anywhere too soon.
Furthermore, and as I have **written and agreed** (https://goldswitzerland.com/how-an-illiquid-dollar-ruins-the-world/), the so-called “milk-shake theory” is not altogether wrong.
That is, demand for USDs (and USTs) within the tangled and levered web of US derivative and Euro Dollar markets is baked into a system which will take years (not days) to unravel, monetize or replace, and this sure as heck won’t be orderly, global nor overnight.
**Then Comes Change, Pain and Open Denial**
But let’s get real: The days of the USD as a trusted _payment system_ or hegemonic power broker are unwinding right before our very eyes.
And the best way to see the truth of this reality is to catalogue the ever-expanding list of lies from the big boys and their complicit, media _ja-sagenders_ (“yes-sayers”) desperately trying to deny the same.
At first, for example, the centralized economists were blaming de-dollarization and CNY energy transactions on the Russian sanctions.
Gee. Go figure?
Thereafter, the economists said de-dollarization is just the result of Emerging Market (EM) countries momentarily running out of (in fact they’re intentionally dumping) USD reserves.
Western “experts” are trying to convince themselves and the rest of the world that EM nations will implode unless they eventually acquire more USTs and USDs to buy energy.
What these experts are failing to see (or say), however, is that many of those countries are already beginning to buy that energy outside of the USD…
Folks, de-dollarization in global commodity markets is happening already, and will accelerate rather than fade away into some fantasy image of how the “West was Won,” for as argued elsewhere, **the West is already losing**. (https://goldswitzerland.com/how-the-west-was-lost-declining-world-reserve-currency/)
**Facts Are Stubborn Things**
As for the list of nations, both big and small, de-dollarizing right before ou…
https://www.zerohedge.com/markets/dollar-woes-debt-denial-usa-screwed