Ron Paul, the former U.S. presidential candidate and former U.S. congressman, has stated that recent geopolitical events have caused nations to start ditching the U.S. dollar. Paul stated that the debasement of the currency, the manipulation of prices, and sanctions against other nations have made other countries afraid of holding dollars.
Ron Paul Believes De-Dollarization Is Happening at a Rapid Pace
Ron Paul, former U.S. presidential candidate and former U.S. congressional representative, has talked about how he believes de-dollarization is starting to accelerate recently, even if he does not know when the U.S. dollar will lose its reserve currency status.
In the latest episode of “The Ron Paul Liberty Report,” his online videocast, Ron Paul clarified a global reduction in the percentage of reserves held in U.S. dollars is caused by several circumstances, including “America’s endless wars, sanctions, wokism, nihilism, and unconstitutional abuses.”
About the consequences of this, Paul stated:
It is already starting. More and more we have a series of countries that are transacting their international accounts in their own currencies and ignoring it.
Furthermore, Paul declared that the U.S. government has a hand in “rigging” the price of gold in order to make the dollar look stronger, having “no respect” for gold.
Dollar Replacement and BRICS
About the possible replacement of the U.S. dollar on international markets, Paul stated that while he was not sure, Russia and China might have some kind of influence in the response to the vacuum that the dollar could leave behind. He also included BRICS, the bloc integrated by Brazil, Russia, India, China, and South Africa, as part of this answer.
I would keep an eye on BRICS and if they continue or accelerate their purchase of gold. Eventually, the best standard of money is that it is easily convertible into something that you can measure.
The BRICS bloc has been studying the issuance of a currency since at least last year, when Russian President Vladimir Putin made the announcement at the 14th BRICS summit held in China.
More recently, Russian State Duma Deputy Chairman Alexander Babakov added that such a currency might be potentially backed by gold or other commodities, including rare-earth elements or even land. However, the definition of the structure of the currency could be announced at the next BRICS summit to be held in South Africa in August.
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