From EJ Antoni and Peter St. Onge<\/a> channel Vladimir Putin (Feb 2024):<\/p>\n America\u2019s political establishment has less respect for the U.S. dollar than our foreign adversaries.<\/p>\n That was made clear when Tucker Carlson recently interviewed the Russian strongman President Vladimir Putin, who clearly articulated how the uniparty in Washington is destroying America\u2019s greatest strategic and economic asset \u2014 her currency.<\/p>\n<\/blockquote>\n Article continues:<\/p>\n We\u00a0warned on this site<\/a>\u00a0before how Biden\u2019s unprecedented freezing of U.S. dollars owned by a foreign central bank has fundamentally jeopardized the currency\u2019s hard-won reserve status. In fact, it\u2019s a main factor now\u00a0driving dozens of countries away<\/a>\u00a0from what they see as a dangerous and unpredictable United States \u2014 countries now including France and Saudi Arabia.<\/p>\n Of course, China is eager to exploit these fears and welcome countries into its rapidly growing\u00a0BRICS anti-dollar bloc<\/a>.<\/p>\n<\/blockquote>\n Here are some points with respect to Dr. Antoni and Dr. Stonge\u2019s points. First, is there evidence that sanctions \u2014 either trade or financial \u2014 have\u00a0 significantly negative impact on US dollar holdings?<\/p>\n Source:\u00a0<\/strong>Chinn, Frankel, Ito (<\/a><\/em>JIMF, 2024<\/a>)<\/a>.<\/em><\/p>\n Second, what do we know about BRICS dedollarization? Here is a picture of USD reserves held by the BRICS.<\/p>\n Figure 1:<\/strong>\u00a0Share of foreign exchange holdings in USD, by central bank. Source:\u00a0Ito-McCauley database<\/a>,.<\/em><\/p>\n My advice: dedollarization might be occurring, but let\u2019s not look to Vladimir Putin on what\u2019s good for the dollar as a key international currency.<\/p>\n \u00a0<\/p>\n<\/p><\/div>\n\n
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