De-dollarization is not an abstract, insignificant concept. It is most pervasive in commodity markets, particularly energy, where a growing number of transactions are being priced in non-dollar denominated contracts. This is an offshoot of Western sanctions on Russian energy due to the Ukrainian conflict. To cope, Russia diverted energy exports … Continue reading
Category Archives: The Dollar
Defending the Dollar, Part 2
The line it is drawn The curse it is cast The slow one now Will later be fast As the present now Will later be past The order is rapidly fadin’ And the first one now Will later be last For the times they are a-changin’ – Bob Dylan Background … Continue reading
Opposition to a Central Bank
Opposition in the United States to a central bank empowered to issue currency is not new. Twice before in the nation’s comparatively short history it was created and abolished. Presidents and thinkers, including Thomas Jefferson, James Madison, Andrew Jackson, Abraham Lincoln, Otto von Bismarck, James Garfield, William McKinley, Theodore Roosevelt, … Continue reading
Status of the Dollar
According to the International Monetary Fund (IMF), the U.S. dollar share of global foreign exchange reserves declined from roughly 73% in 2000 to about 56% in 2020 despite the dollar’s continued appreciation during that period. Particularly noteworthy is the slope of the decline beginning in 2014, the year of the … Continue reading
Declining U.S. Dollar Share of FX Reserves
According to the International Monetary Fund (IMF), the U.S. dollar share of global foreign exchange reserves declined from roughly 73% in 2000 to about 56% in 2022 despite the dollar’s continued appreciation during that period. Particularly noteworthy is the slope of the decline beginning in 2014, the year of the … Continue reading
Water, Hydrogen, Real Estate & the Dollar
Background It is indeed remarkable the propensity of our esteemed decision makers to ignore scientists’ warnings. Case in point, the March 1912 issue of Popular Mechanics correctly predicted that coal burning would accumulate carbon dioxide in the atmosphere and cause a greenhouse effect. Did the industrialized countries heed? The answer … Continue reading
Historical Record
Breton Woods Roots In 1944, with the approaching defeat of Germany all but certain, representatives of forty-four nations met in Bretton Woods, New Hampshire to create a new international monetary system. This Bretton Woods System, which became fully operational in 1958, was essentially a mechanism to settle international accounts in … Continue reading
Defending the Dollar, Part 1
Largely ignored by mainstream media, the dollar’s monopoly on global oil transactions is coming to an end. On March 26, 2018 the Shanghai Futures Exchange began trading oil in yuan (or renminbi), China’s currency. The ramifications of this event cannot be overstated. The following timeline should be food for thought.