Biden Digging Grave For Dollar Hegemony

As we said earlier, it is difficult to exaggerate how much of a radical move it was to cancel Russia. It was a highly emotional decision that was done on the spur of the moment. No thought was given to the long term consequences of this.

Asia Times:

“China is looking for alternatives to the US dollar as a reserve currency after Western nations froze the foreign assets of Russia’s central bank last week, former IMF chief economist Kenneth Rogoff told media on March 1.

The seizure of Russian sovereign assets has no precedent in postwar history, and sets a precedent for similar action against China in the event of hostilities over Taiwan.

“It’s an absolutely radical measure to try to freeze assets at a major central bank. It’s a break-the-glass moment,” said Rogoff, now a professor at Harvard University.

“It’s a major thing,” Rogoff added. “I mean, if you want to look at the long-run picture of dollar dominance in the global economy, believe me, China’s looking at this. They have, I don’t know, $3 trillion in dollar reserves.

“And someday they may well do a similar thing in Taiwan. And they’re thinking about how to shield themselves. And it could have very big, longer-term ramifications for the global economy, for dollar dominance.” …

“While hitting the Russian economy, sanctions will also harm Europe’s interests and weaken the independence and credibility of international organisations, including SWIFT,” the global messaging service for international bank transfers, Gao wrote. “For the United States, the frequent use of the financial sanctions weapon will accelerate the process of de-dollarisation of the world, which is tantamount to digging a grave for dollar hegemony.”

The obvious response, Gao added, “is to aggressively reduce holdings of US debt in international reserves and increase gold reserves. By November 2021, Russia’s holdings of US Treasuries had fallen from $176.3 billion at the 2010 peak, to just $2.409 billion, accounting for less than 1.4 percent of total reserves, an insignificant proportion.” …”


As the euro, South Korean won and other major currencies have been sliding during the intensifying conflict in Ukraine, the yuan is increasingly growing as a “safe haven” currency — a role hitherto dominated by King Dollar. In the mean time, China’s Cross-Border International Payments System (CIPS) is moving to replace SWIFT for Russian trade financing …

Even though SWIFT manages $400billion of daily transactions to CIPS’ $50billion, CIPS volume has been growing rapidly. If anything, the Ukraine conflict and the accelerating expansion of trade with Russia will further increase the size of CIPS, which will be a viable alternative to nations who would otherwise be vulnerable to Washington’s dictates …”

If I were the Chinese, I would be looking to get out of the dollar before the obvious next step is taken and China is canceled over Taiwan.


  1. Wallace – with his HS School 101 Econ knowledge – obviously does not understand that China is an export nation which pegs its currency to the USDollar which allows them to keep their currency artificially cheap and gives the Chinks huge trading advantages over countries like the US and European countries. It also allows them to take their huge positive trade balances and recycle then into US Treasuries which are considered a safe haven in a world full of garbage investments and currencies – e.g. the yuan and Russian ruble.

    • What’s that nonsense? University Econ 101 or Rush Limbaugh regurgitated tripe?

      • More like Sean Hanniity or Mark Levin. You know these conservatives parrot what they hear on those shows. Russia bad, Israel good, Democrat bad, Republican good. you know the drill.

    • They can peg to the Euro (the world’s #2 reserve currency, perhaps soon to be #1) and let the Dollar turn into the Peso.

      • Because the Euro is an amalgamation of a number of countries that have no cultural ties to one another, don’t share a common language and are usually killing one another when they are not briefly at peace.

        • Backed by the might of German industrial and economic power, as well as other leading wealthy nations. Not like the Biden bucks printed out of thin air. America’s rulers are living in cloud cuckoo land when it comes to the “almighty” dollar. Whether or not you like the European Union or ECB, they’ve been waiting years for a real $ collapse; and now the idiots in Washington just might give it to them.

    • What aren’t you over serving in the Azov battalion yet, Schlomo? They really need you there in the Dombass cauldron.

  2. Famous Admiral Horatio Nelson quote: “Gentlemen, when the enemy is committed to making a mistake, we must not interrupt him too soon.”

  3. Destruction of the dollar will be the end of the Empire, something that will benefit the whole world including the U.S. Only the corrupt elites will permanently suffer from the end of the Empire until those rootless cosmopolitans move to a new host, probably China this time.

    The end of the dollar is coming anyway. The sanctions regime is just accelerating this natural process. Sanction Canada, Mexico, Germany, China, France Saudi, Italy and everyone else, do it now. The sooner this Globo homo shopping mall Empire comes crashing down the better. It cannot be reformed, it must fail of its own dead weight.

    • One of their main problems with China will be their inability to use crypsis. They can’t roll into China and say:”surprise, everybody, we’re Chinese!” But I do hope the parasites find a new host.

      • Yes (((they))) were planning to move their operation to China about 15 years ago. A meeting was held by their elders in Maryland’s eastern shore in the town of Wye – hence Vox Day’s phrase one encounters “The Learned Elders of Wye”. It became apparent that the Chinese regime under Xi was not going to allow them to set up shop when he rejected Rothschild-secended Zuckerberg from naming his half-Chinese offpring after Xi. Now (((Soros))) is making statements about Xi being the greatest obstacle to the (((open society))).

        • “Now (((Soros))) is making statements about Xi being the greatest obstacle to the (((open society)))”:

          The Tianamen Square colour revolution failed despite the traitoriousness of Deng (the would-be Chinese Gorbachev) and more recently, the Hong Kong “freedom fighters” (another CIA-contrived colour revolution) also failed in spite of billion-dollar U.S. support. It is very difficult for the Cosmopolitans (but they will keep trying) to break the NATURAL cohesion of 90 percent ethnic Han (and 100% East Asian) China. It is NATURE, not Xi Jinping, that is “the greatest obstacle to the open society.”

  4. Yes. If Russia and China have their ducks in a row, an alternative reserve currency – possibly gold-backed – will be made available. Likewise a SWIFT alternative is in advanced development. If this happens most of Asia will adopt the new system and Schlomo’s great usury-racket will take a serious hit. The empire will do everything in its power to stop this from happening. The minute it does happen, the entire world will see that the great Emperor Greenback, puffed up my more bankstein hot-air than many a large gas-giant star, is really just General Butt-Naked.

    That’s why we had the little escapade in Libya when Cankles was running the State Dept. Our “new friend” Muammar Gaddafi had amassed some 35 tons of gold was was planning to launch the gold dinar as an alternative to the Petro-dollar. That was another one of the “color revolutions”. Not only did all that gold vanish, but Libya was used as a convenient chaotic place from which to send MANPADs and other verboten weaponry to ISIS, whose supreme commander is Israel. The war in Syria commenced shortly thereafter.

    • When US troops (or mercenaries) go in the gold reserves are first to go out. Iraq, Ukraine, Libya and they don’t go to Ft. Knox either.

    • “Our ‘new friend’ Muammar Gaddafi had amassed some 35 tons of gold was was planning to launch the gold dinar as an alternative to the Petro-dollar. That was another one of the color revolutions. Not only did all that gold vanish, but Libya was used as a convenient chaotic place from which to send MANPADs and other verboten weaponry to ISIS, whose supreme commander is Israel. The war in Syria commenced shortly thereafter”:

      Gaddafi might have been a very bad person, according to many accounts of cruelty and serial rape, and according to Israeli propaganda he was a self-hating Jew descended from a Jewish grandmother. His grandmother was the child bride of a Muslim and was converted to Islam at nine years of age, making Muammar technically Jewish, although he was extremely anti-Semitic, IF his great grandmother, not just his great grandfather, was Jewish. (There is a large Crypto-Islamic population in Libya, descended from the very large Jewish population of ancient Cyrenaica before the Arab conquest (when many converted to Islam but retained their family records of Jewish descent.) But regardless of his personal failures, Muammar did choose and enforce (with “good guidance” and he was called “The Guide”) the correct economic system for Libya, to make Libya flourish. During his presidency, under his guidance, Libya became the most prosperous country in Africa, with outstanding equality. Since Libya was “liberated” by the U.S. it has fallen back into extreme inequality and inter-tribal warfare.

  5. Some have already been talking about wanting to put sanctions on China and India. We are watching the same process that has discredited media like CNN, just on a much larger civilizational scale. When I see an American deep stater or politician raging about Russia and China, it’s like seeing Brian Stelter raging about his network being unpopular. It’s all of these same out of touch PMCs who believe they are masters of the universe, not really understanding their position and digging their hole deeper.

    • It feels like they are digging their own grave but they are a deadly parasite/adversary and not to be underestimated.

  6. BTW, start saving your nickels. The ones which have been minted since 1867* (25% nickel and 75% copper) are presently at a melt value of almost 7.5 cents (that’s 130% of face). Pre-1982 pennies (95% copper) are worth about 3 cents (300% of face), I’ve been saving those for years now.

    You can look up melt-values here:

    It is of course illegal to melt down coinage minted under Wokundan authority, and they enforce it at the present time. Note that it does not require a lot of money to save out nickels and pennies dated before 1982. (There are 95% copper 1982 pennies but to have to weigh them).

    *There were 5-cent pieces issued up to about 1891 which were made to the old 90% silver standard. They were called “half-dimes”. Obviously way above face value (about 0.90 melt value). These are not found in change.

    • You can get silver slugs on ebay too. Crypto ain’t gunna be worth much if the power id off. Silver is an excellent choice for a new currency. Tungsten and lead not so bad either but heavy.

    • What you have described, Exalted Cyclops is an example of Gresham’s Law in action: “Bad Money drives out Good.” The best example in recent American history was when the U.S. Government changed %90 silver coinage to only silver clad coinage starting Jan. 1st, 1965. This is why one never finds pre-1965 dimes, quarters or half-dollars in change received or from banks in coin rolls.

      If the U.S. Government had not debased the coinage it could have never inflated the currency. People would have changed their Federal Reserve Notes into %90 silver coins at face value to protect themselves from inflation. The U.S. currency would have become worthless in a short time as people only accepted silver coins for transactions.

      The U.S. Government needed massive inflation to fund its Vietnam War, Urban Renewal slum building, so-called “Civil Rights” programs, Great Society and all the other horrendous shit the Government did from the 1960’s until today. %90 silver coinage was the last check on Government spending. Confiscation of gold by FDR in 1933 was the first step in destroying honest money, junk coinage replacing silver was the last step.

      There is no going back now. The U.S. Government is going to wreck the dollar through inflation this time. No doubt the Russians will get blamed for that too.

      • “Confiscation of gold by FDR in 1933 was the first step in destroying honest money, junk coinage replacing silver”

        The same pattern in roman currency. As rome declined, coins went from gold down to bronze with a silver wash.

      • “The U.S. Government is going to wreck the dollar”

        The U.S. Government is going to wreck us.
        They’ve been doing it for the past 50 years.

      • “junk coinage replacing silver was the last step.”

        Uh, maybe replacing copper with zinc, ie pennies.

      • “U.S. Government is going to wreck the dollar through inflation this time”

        Yes, but to what point?

        At some point markets will get spooked and go into a bidding frenzy for commodities, as in 1980. Then USZOG will have to do something or people will start trading in old coins and barter, which in almost impossible to tax.

        Wheat is already over 10$/bushel, with surging food prices to follow.
        USZOG , for over 100 years , has relied on a ‘cheap food policy’ to keep the populace quiet, as did Rome. Without cheap food the populace might not be so quiet.

        • All true and excellent points. The founding of the Federal Reserve is really the instrument of this financial destruction.

  7. I think Weimar 2.0 just ended and we are entering WWIII with the declaration of war on Russia by Judea.

    • Do a search for “Putin Wailing Wall” to see that Putin is a puppet of the Tribe just as much as Trump is. If you are a politician in Russia or the US or anywhere in order to prove your fealty to the Zionists and to denounce Christ the Christ-killers make sure you make the pilgrimage, put a yarmulke on and place your hand on the Wall.

      • We can only hope for a Tyler that turned on his usurious masters and killed another attempt at a (((central bank))) by veto.

    • History is rhyming quite nicely. A lot of people compare Putin to Hitler. It’s an apt comparison historically, although (((they))) are doing it hysterically.

    • That is pretty much what we are witnessing right now and hopefully this will end Russias loveaffair with the jews for good

      Last time it was the last straw for the Germans now maybe just maybe it will be the same and that we will see a realy messy breakup

      Russia the Yid is not your friend

    • @KT88,

      Except Weimar 1.0 was partially responsible for creating the greatest nation in world history.

      The only thing Weimar USA has birthed was schizophrenic, vindictive transexual golems that it placed around the globe.

    • “The US is going to implode sooner or later”

      That’s easy to say, but WHEN and HOW ?
      What will be the sequence of events ?
      Those are the answers that count .

  8. Please excuse me while I LEL 6 gorillion times. Whenever HW posts anything to do with economics ALL THE SELF-STYLED FINANCIAL EXPERTS emerge from the shadows, experts who drive 2003 Ford Tauruses and live in rusting mobile homes on cinder blocks, surrounded by tall weeds and dead grass strewn with discarded toys and furniture. A fig for your advice!

  9. Seems to me, they are just going to let inflation run, as the alternative is far too painful and destructive. Additionally, it provides a way to devalue the national debt without going into default.

    So what do we do to avoid the great bubble ?

  10. Now the Saudis are talking about pulling investments from the USA lmao. Any rich person in the world who could potentially be cancelled for whatever reason will be too afraid to keep any money or property in American hands for fear it will just be stolen.

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