I’ve written for UnHerd about the most important economic story since Bretton Woods: de-dollarisation — or the world’s gradual disengagement from the dollar. The dollar’s demise has been endlessly — and wrongly — predicted since the Sixties, so scepticism here is justified. This time, however, there is good reason to believe that it’s happening for real. De-dollarisation comes in many forms, but three are particularly easy to spot: the settling of international transactions in currencies other than the dollar, primarily the Chinese yuan; the reduction of the dollar in global foreign-exchange reserves; and the decline in foreign holdings of US Treasury bonds. On all counts, the trend seems clear: countries are slowly moving away from the dollar. This is good news not only for the world but also for America. By attracting capital to the US and allowing it to help itself to foreign goods and resources such as oil simply by printing its own currency — in what Valéry Giscard d’Estaing, de Gaulle’s Minister of Economy, called America’s “exorbitant privilege” — dollar dominance has undoubtedly benefited America’s imperial elites: Wall Street, large global corporations and, most importantly, the national security establishment. It’s what has allowed the US to sustain a regime of perpetual war, on top of exercising financial dominance over much of the world. But this has come at a significant cost not only for the rest of the world but also for American workers, farmers, producers and small businesses. Read the article here.

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