Girard, an expert on geopolitical affairs, issued this remark to the French newspaper Le Figaro. He pointed out that the U.S. itself is to blame for the world's de-dollarization, adding that Washington had overused the greenback as an instrument of political pressure.
"By turning its currency into an instrument of political pressure on other nations, the U.S. has unwittingly launched a worldwide movement to overthrow the 'king dollar,'" Girard said. "Total de-dollarization will not happen overnight, but it is clearly an irreversible tendency."
The analyst cited French bank BNP Paribas as one of the victims of the currency's weaponization. Back in 2014, the U.S. Department of Justice (DOJ) sentenced the bank to pay $8.9 billion as part of its guilty plea. According to a DOJ press release, BNP Paribas violated the International Emergency Economic Powers Act and the Trading With the Enemy Act.
The French bank was penalized for processing billions of dollars of transactions for Iran, Cuba and Sudan – three nations that have been sanctioned by the U.S. for decades. Girard said that by punishing BNP Paribas, the DOJ and other U.S. authorities demonstrated that they did not want other nations to trade with the three sanctioned countries using the dollar.
True enough, more and more countries are starting to eschew the dollar as a currency for trading – instead shifting to local currencies. The five-member BRICS group – consisting of Brazil, Russia, China, India and South Africa is leading the shift.
Russia has shifted to foreign exchange in national currencies with China, Armenia, Belarus, Kazakhstan and Kyrgyzstan. Meanwhile, China has sealed a deal with Saudi Arabia to sell oil for the Chinese yuan, and agreed on a deal with Brazil to trade in their own currencies instead of the dollar. (Related: Saudis consider using yuan over dollar in oil sales; move could signal collapse of petrodollar and the American economy.)
US abused dollar's standing as world reserve currency
Girard is not alone in his sentiments, however. Former actor Jason Peirce warned in a piece for the Federalist that the end of the dollar as the world's reserve currency would happen under the administration of U.S. President Joe Biden. He also emphasized that there are serious repercussions if the dollar loses its status as the world's reserve currency.
"Reserve currency status means central banks around the world hold dollars in reserve, as an enormous amount of global trade is priced and conducted in dollars. For U.S. citizens, this means a greater quality of life and standard of living, at least in terms of purchasing and financing power, and greater incomes and general economic efficiency," Peirce explained.
"It's vital to think through the consequences of the dollar losing its status as the world's reserve currency. Simply, it would mean a dramatic drop in the standard of living and quality of life for middle-class Americans. For the world, it would mean a realignment of the global economic and financial order."
The former actor also cited one example of how Washington weaponized the dollar against Moscow. He wrote: "Amid the Russia-Ukraine war, Biden slapped economic sanctions on Russia, essentially denying Russia access to dollar reserves." Peirce continued that the U.S. has done the same to "countries that have failed to conform to [its] foreign policy goals" over the last decade or so.
"The problem for the U.S. is [that] Russia and other countries are now looking for alternatives to the dollar. Many countries no longer trust the U.S., and they are losing faith in the dollar as a stable medium of exchange and store of value. Simply put, the U.S. has abused the dollar's standing as the world reserve [currency]."
Watch this video outlining the rise and fall of the U.S. dollar as the world's reserve currency.
This video is from the RED PILLED channel on Brighteon.com.
More related stories:
Dollar collapse: Top Indian cement producer pays for Russian coal using Chinese yuan.
China settles first LNG trade using YUAN – a major blow to the petrodollar.
Clay Clark warns public of possible weaponization of US monetary system.
De-dollarization just got real.
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