What follows is a summary of everything that the Director of the Foreign Policy Planning Department of the Russian Ministry of Foreign Affairs shared, after which some concluding thoughts will wrap up the analysis. Alexey Drobinin, Director of the Foreign Policy Planning Department of the Russian Ministry of Foreign Affairs, comprehensively explained the
Cutting through all externalities, the possibility of dedollarization is an existential threat to the US. This can’t be overstated. Preventing loss of dollar hegemony drives ALL American geopolitics.
America's economy is kept alive by exploiting the unique US dollar inflow from every other country's surplus. The dollar’s status as reserve currency lets the US export the pain of Fed money printing. Without this trillion+ dollar annual subsidy, the entire domestic economy collapses. What Volcker began in the 1970s as an ingenious way to maintain US military spending has metastasized into an essential crutch propping up an otherwise non-viable economy.
The question no US politician has a better answer for than 'full scale dominance' is how America weans off the $1T+ a year Congress pumps into the economy using dollar surplus recycling from China, Germany, Saudi, Japan, Korea, etc. No weaning off is happening. Each passing year America’s moribund domestic economy becomes more hollowed out, accelerating its existential reliance on unaccountable money printing.
Mad Max dystopia is America's future if the world dedollarizes. What US politician can ever let this happen? What choice does the United States have but do everything in its power to fight the multipolar dedollarized future?
Russia, Germany, Japan, India and - in particular China - aren’t simply rivals to the United States. Their very existence as independent economic powers spells impending doom to the continuity of dollar hegemony; and America is locked into a collision course by forces beyond any American administration’s power to change.
Cutting through all externalities, the possibility of dedollarization is an existential threat to the US. This can’t be overstated. Preventing loss of dollar hegemony drives ALL American geopolitics.
America's economy is kept alive by exploiting the unique US dollar inflow from every other country's surplus. The dollar’s status as reserve currency lets the US export the pain of Fed money printing. Without this trillion+ dollar annual subsidy, the entire domestic economy collapses. What Volcker began in the 1970s as an ingenious way to maintain US military spending has metastasized into an essential crutch propping up an otherwise non-viable economy.
The question no US politician has a better answer for than 'full scale dominance' is how America weans off the $1T+ a year Congress pumps into the economy using dollar surplus recycling from China, Germany, Saudi, Japan, Korea, etc. No weaning off is happening. Each passing year America’s moribund domestic economy becomes more hollowed out, accelerating its existential reliance on unaccountable money printing.
Mad Max dystopia is America's future if the world dedollarizes. What US politician can ever let this happen? What choice does the United States have but do everything in its power to fight the multipolar dedollarized future?
Russia, Germany, Japan, India and - in particular China - aren’t simply rivals to the United States. Their very existence as independent economic powers spells impending doom to the continuity of dollar hegemony; and America is locked into a collision course by forces beyond any American administration’s power to change.