Countries are moving away from the U.S. Dollar: How we got here

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I’m amazed at the amount of questions that I get about the de-dollarization. Is there going to be a bank run on the United States? It’ll be like what happened at the, you know, Greece, Italy, Portugal, Ireland, Spain back in 2010. Maybe. Is that? Would it be such a bad thing? Again, we were experts at defying conventional wisdom.

here at the Watchdog on Wall Street show. Conventional wisdom is, oh my God, this is terrible. Oh no, China getting together with Russia. Did you see what happened with China and Brazil this past weekend? Oh my God, did you see what Macron said when he left his meeting with China and Europe’s gonna need to go their own way? Whatever, all good. Competition breeds.

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and that’s what we’re gonna need to do. We gotta get back to being the United States again. Not this empire that’s looking to invade countries and slay every monster going around the world like bloody Don Quixote, you know, trying to take down windmills, we’re trying to take down every monster out there. How about we do business? How about we do business? How about we go out and compete? Because that’s what makes America great.

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That’s what this country’s all about. It was interesting, I was reading this, Larry Summers. Larry Summers, and I always like joking around about Larry Summers, the smartest guy in the world, just ask him. Sometimes I agree with Larry, sometimes I don’t. But this is an interesting statement that he made. There’s a growing acceptance of fragmentation and maybe even more troubling. I think there’s a growing sense that ours may not be the best fragment to be associated with. Think about that.

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You got countries around the globe that are saying, who do we want to saddle up with? We want to deal with the United States. We still want to deal with the United States? Anyway, somebody from a developing country said to him, what we get from China is an airport. What we get from the United States is a lecture. And added that Middle East, Russia, China links were a symbol of something that is a huge challenge for the United States, which is looking a bit lonely.

on the right side of history, as those who see much less on the right side of history, increasingly banding together in a whole range of structures. If the Bretton Woods system is not delivering strongly around the world, there are going to be serious challenges and proposed alternatives. And again, this is part of the problem with our foreign policy here. It is disjointed. It doesn’t make any sense. You know, again, we do things. We do things like, again,

put sanctions on Russia with the swift banking takedown that we had, making it difficult for them to conduct transactions. That affects other countries around the world that have to do, that have already done business with Russia and want to get paid. And it ticks them the hell off, quite frankly. And they’re like, who the hell are you guys? And that’s what they’re talking about, the United States. So countries are saying, hey, you know what?

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Maybe we’ll start conducting more trade in our own currency. Again, I don’t know what’s gonna happen. I really don’t, but like I said, I’m a big believer that we can right the ship. We can right the ship. We just gotta get back to doing what we do well. Try to basically have more friends.

than enemies. I mean, you think about all the things that are taking place, right? You think about this disintelligence, call it intelligence leak. I mean, do you understand how ridiculous this entire thing is, how this makes us look? I mean, we got one embarrassing story after another. You know, that whole concept, the shining city on a hill, where we wanna lead by example.

You want people to look to us because they want to be like the United States. They want to do business with the United States. That’s what’s made this country great. Guys, we’re slipping. Man, we got to admit to that. We’re slipping. You take a look at our fiscal policy here in the United States. The amount of spending are our deficits, our debt. I was what is it? Reading today was.

over $800 billion in interest we’re going to pay this year, over $800 billion in interest. Again, countries are going to look to their own, their own best interests, and that’s what they’re going to do. Yeah, you had a big meeting, you have Brazil, it’s China’s most important trading partner in South America.

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They just announced a new agreement to conduct bilateral commerce in their respective currencies rather than the US dollar. Again, they said, oh, this move shocked many in the United States, but opened the eyes of others around the world to the possibility of decoupling from the dollar. Interesting. Interesting. Again, Lulu said, I don’t understand why we have to continue to do business this way. We’re getting pushback from all of these countries around the world.

globe. Again, what do you do? Do we sit and we complain about this? Or do we change the way that we’re doing things here in this country, where you want to reach out where you want to do business? To me, that’s a much better foreign policy than threats.

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than threats. I mean, this goes back and go back to George W. Bush and you’re either with us or against us.

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Listen, I know we do a lot. Trust me, I know. We are NATO. We defend Europe. I get all that. You know, we backed ourselves, put ourselves in that position. We don’t need to be. I think NATO should have been dismantled ages ago. Ages ago, it should have been dismantled. And Europe doesn’t pay their fair share. We know all of this.

And I understand that we’re still number one on everybody’s speed dial when it comes to any sort of world problem. But, um, again, you know, as you’re seeing more and more companies looking to lift themselves up more and more countries are looking to lift themselves up and take themselves to the next level, wanting to develop what are they hearing from the United States? You can’t do that. You better make sure you electrify it. You better let sure they got, you know, EVs and all this crap. You know, think about it for a second.

You think about how, what we did here as far as, you know, the industrialization of America, we did it and now we’re telling other countries, well, no, no, no, you better not do that now. You better not do that because it’s bad. You put too much carbon into the atmosphere. Do you think that they really give a damn? Huh? Do you? Do you think that somebody’s emerging? Do you think they’re actually thinking about any of this?

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No, no, we should be looking, like I said, what China’s doing, you look to invest, you look to develop, you don’t look to give stuff away either. You know, that’s one of the interesting things that I’ve talked about here over the years, is giving stuff away, giving stuff away, oh, it’s great, okay, it’s a short term, here you go. You know, here are the mosquito nets here, here are the mosquito nets, you’re gonna prevent.

Malaria and in Africa, we’re giving away mosquito nets. What do we do? We put the factory, the mosquito net factory in Africa. We put it out of business because we’re giving them away for free. Does that make any sense? Rather than give away mosquito nets, maybe we should invest and help that factory to expand. To me, that’s a much better way of doing things. Watchdog on wallstreet.com.