Here is Why the U.S. Dollar is Crumbling – Elon Musk
On Tuesday, the CEO of Tesla and SpaceX responded to a video by economist Peter St. Onge in which Onge stressed that "de-dollarization is real and happening fast."
In addition to de-dollarization, the economist commented on the dollar’s movement over the years. He said the currency’s share in 2020 was 55% compared to 73% in 2021. He added that since the sanctions against Russia began, the dollar’s share has dropped from 55% to 47%, and now the de-dollarization is 10 times faster than in the previous 2 decades.
In response, Musk said:
If you weaponize currency enough times, other countries will stop using it
— Elon Musk (@elonmusk) April 25, 2023
Musk is believed to have been commenting on the decline in demand for dollars in quite a few countries since the US used the currency in the form of financial sanctions against countries such as Russia and China, particularly by freezing their dollar reserves or actions related to their exclusion from the SWIFT system.
The dollar, gold, and the BRICS
Many believe that in 2023 the US dollar will face a growing movement against it and a growing interest in gold from the BRICS group, which includes Brazil, Russia, India, China, and South Africa. Some other countries, including Saudi Arabia, Argentina, Iran, Indonesia, Turkey, and Egypt, have expressed interest in joining the alliance.
Gold has risen nearly 20% since last year, and its price is steadily increasing. The dollar, in turn, is losing value due to the build-up of debt and the movement against it that the BRICS is spearheading.
The BRICS group is steadily increasing its gold holdings. Moreover, there is now talk that the countries want to create new alliance currency to replace the dollar as the precious metal will back the world’s reserve currency.