- 21 countries, including BRICS and ASEAN nations, are transitioning away from the US dollar in global trade.
- Elon Musk pinpoints US foreign policy and importing inflation as catalysts behind this monumental shift.
Unraveling the Great Dollar Departure
In a groundbreaking move, a combined 21 countries have ratified their decision to detach from the US dollar by 2023. The significant blocs leading this exodus, BRICS and ASEAN, are showcasing a preference for local currencies, steering clear of the US dollar in global trade scenarios. The charismatic and ever-controversial Tesla CEO, Elon Musk, recently offered insights into the rationale behind this strategic pivot.
At the epicenter of this transition lies the mounting pressure exerted by the White House on emerging nations. This aggressive stance has incited both BRICS and ASEAN, as well as several other nations, to contemplate an end to their US dollar dependencies. Such a shift undoubtedly raises questions about the potential repercussions on the American economy.
Musk’s Diagnosis of the Dollar Dilemma
In an effort to demystify this global financial puzzle, Musk pinpointed the US’s foreign policy, which he describes as “heavily one-sided”, as a primary factor. Such policies, he emphasized, inadvertently hamper the economic trajectories of developing nations. This perceived imbalance, combined with the US’s high-handed approach, is propelling countries within the BRICS and ASEAN alliances to contemplate alternatives to the US dollar.
Furthermore, Musk noted that the US’s punitive measures, particularly in the form of sanctions against nations, have not gone unnoticed. Such actions appear retaliatory in nature, pushing developing countries further away from the dollar and thereby pressurizing the US. This pressure intensifies as the country grapples with potential challenges in deficit funding.
Adding to the discourse on Twitter, Musk observed:
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“Serious issue. US policy has been too heavy-handed, making countries want to ditch the dollar.”
Elaborating on the cascading effects of this policy, Musk highlighted another significant concern. He underscored the US’s penchant for importing inflation, a move compounded by excessive governmental expenditure. This financial strategy necessitates that other nations involuntarily bear a sizable portion of US inflation.
In recent times, the US has imposed sanctions on a list of countries, including but not limited to Russia, Iran, Iraq, and Libya. Alleged support for terrorism and direct warfare serve as the bedrock for these decisions, underscoring the critical nature of geopolitics in shaping global economic landscapes.
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