Spark Global Limited Reports:
For a long time, U.S. bonds and gold have been called two great financial hedging weapons by the outside world. However, since last year, the United States has taken the lead in using water release tactics to pass on its own risks. The release of water without restraint and frantically injecting liquidity into the domestic market has caused domestic inflation to remain high. For this reason, the United States has had to pass the risk to others. country. Therefore, in order to avoid being “sucked up” by the United States, countries began to unite against the US dollar.
Starting from the second half of this year, nearly half of the top 20 “fund holders” of U.S. debt overseas have chosen to sell U.S. debt. Among them, 10 countries including India, Germany and South Korea have sold nearly 45.1 billion U.S. debt. I have to say that the United States has really encountered a problem this time, because in addition to the massive sell-off of U.S. debt, countries are now imperative to de-dollarization. At the moment, in addition to China, Russia and Iran’s decision to cancel the US dollar settlement mechanism, the European Union has also joined in.
In 2022, the European Union will use the euro as the base currency, and will use the euro as the base currency of the European Union when conducting energy trade with third countries. To put it simply, after the completion of the “Beixi No. 2”, the EU will take more actions to launch further actions on “de-dollarization”, and the euro will further expand eastward. At present, more than ten EU member states, as well as Russia and Iran, have recognized the trade swap settlement mechanism established by the EU.
These news are tantamount to a bolt from the blue for the United States. Once these developed countries adopt de-dollarization in foreign trade, the dollar hegemony will surely suffer a heavy blow. The imperative of various countries to de-dollarization is the primary challenge that the United States needs to face at the moment. But the final result is bound to be just like what the British media “The Times” said, the world is now de-dollarization, and it is only natural that the dollar will lose its dominance.
Today’s world is a multi-polar world, and many countries hope to build a multi-dimensional world that is decentralized. However, since the establishment of the Brayton system established by the United States, the United States has been relying on its hegemonic power to establish a world financial system based on the US dollar, which has been maintained for decades. Over the past few decades, the United States has taken this to make its economy far ahead in the world, but it has also printed banknotes on a large scale, harming the world economy, and allowing the world to pay for the evil results it caused.