And the world has only just begun the process of de-dollarization. Gold is steadily becoming the reserve asset. Transactions are still mainly being done in dollars but alternate payment rails are being set up. We are already experiencing effects from de-dollarization like higher inflation, higher/sticky long bond yields even though Fed is cutting, gold and silver prices rocketing, multiparty deals between countries, etc. In India, UPI (by the Indian govt) has surpassed Visa and Mastercard for payments. The less that the world depends on the dollar and American companies, the more inflation we will see here. It’s a process, but at this point de-dollarization is not reversible. At best, it can be slowed, but eventually I don’t see an escape from things getting out of control.Not to belittle the seriousness of our national debt, but they are not analogous. German reparations from WW1 were about 1/4 - 1/3 of the Weimar Republic's debt, and were specified to be paid back in gold-backed currency.
You might not realize it, but the US has already made the choice too.
While we were celebrating stock returns in the US, China quietly beat the US in 5G and EV, and some would argue they have already beat the US in AI. Reshoring manufacturing will take a generation. Zoho is steadily taking away customers of Microsoft Office.
Statistics: Posted by anoop — Tue Dec 02, 2025 2:32 am — Replies 99 — Views 8575