Former U.S. presidential candidate and congressman Ron Paul recently stated that he believes de-dollarization is happening at a faster rate due to recent geopolitical events. Paul listed several factors responsible for the reduced percentage of reserves held in U.S. dollars including the devaluation of the currency, manipulation of prices, and the use of sanctions against other countries that has made other nations hesitant to hold dollars. In the latest episode of his online videocast, “The Ron Paul Liberty Report,” Paul warned that more countries are transacting their international accounts in their own currencies while disregarding the U.S. dollar.
While Paul does not know when the U.S. dollar will lose its reserve currency status, he thinks that there are indications that this may happen sooner than later. He also emphasizes that the U.S. government has played a role in “rigging” the price of gold to make the dollar look stronger.
As the world shifts away from the U.S. dollar, Paul believes that Russia and China may have some influence in the global response to the vacuum. He also included BRICS, an acronym for Brazil, Russia, India, China, and South Africa, as part of the process. Paul believes that BRICS is key to watch, and that “if they continue or accelerate their purchase of gold, eventually, the best standard of money is that it is easily convertible into something that you can measure.”
The BRICS bloc has been studying the issuance of its currency since last year when Russian President Vladimir Putin announced it at the 14th BRICS summit held in China. More recently, Alexander Babakov, the Russian State Duma Deputy Chairman, stated that the currency could potentially be backed by gold or other commodities, including rare-earth elements or even land. The structure of the currency is expected to be announced at the next BRICS summit to be held in South Africa in August.
De-dollarization is a phenomenon that has been happening for quite some time, and according to Paul, it is accelerating. As countries shift away from holding dollars and the world attempts to find a replacement for the U.S. dollar on international markets, gold is perceived as an attractive alternative. Gold’s long history as a store of value, a unit of account, and a medium of exchange has made it an appealing choice for investors and governments alike.
As far as the U.S. government’s position on gold is concerned, Paul believes that the U.S. government has no respect for the precious metal. He stated that the U.S. government has been rigging gold prices to create the appearance of a strong U.S. dollar.
In conclusion, Ron Paul’s thoughts on de-dollarization highlight a growing trend that could have profound implications for global politics and economics. The rise of new monetary systems backed by gold or other commodities could usher in a new era of financial stability and could make the U.S. dollar less relevant than ever before. As the world waits to see what happens, it will be interesting to see how this shift plays out, particularly with regard to the future of international trade and global power dynamics.