Theory of the End of the US Dollar: A Conspiracy?

The theory of the end of the US dollar has been spreading like wildfire in recent weeks. While some contest the idea of the dollar’s demise, others believe it to be the end of an economic hegemony that has been long-standing. For some, it’s a plot organized by enemies of western civilization.

Is the end of the dollar the result of a conspiracy against the US economy?

Some analysts, such as political scientist Ian Bremmer and economist Paul Krugman, have recently rejected the idea of the end of the US dollar. However, they are likely in the minority. From the authorities’ perspective, the issue is being taken seriously, and there is no shortage of arguments to explain the situation.

In an interview with CNN, Janet Yellen, the US Treasury Secretary, spoke about the topic. For this economist, who previously served on the Federal Reserve Board of Governors, there is no doubt. If the dollar isn’t dead yet, it’s certainly already in the throes of death.

For her, the perpetrators of this organized crime against the US currency are well-known. It’s undoubtedly China, Russia, and Iran. These three international trade behemoths, recently joined by Saudi Arabia, are conspiring, according to her, to get rid of the dollar. This is because the US dollar has been, until now, a means for US authorities to impose their will, through economic sanctions.

American Currency Dominance at Risk As China, Russia and Iran Conspire To Dump Dollar: Treasury Secretary Janet Yellen https://t.co/TDKgCjaXcW

— The Daily Hodl (@TheDailyHodl) April 23, 2023

However, the former Chair of the Federal Reserve Board of Governors does not deny these facts. She believes, however, that the execution of this plan could prove difficult for its instigators. According to Yellen, the “properties” of the dollar are such that finding a similar alternative would be challenging. Even if identified, the implementation of such a solution could be more complicated for these countries.

“We have very deep capital markets and rule of law that are essential in a currency that is going to be used globally for transactions, and we haven’t seen any other country that has these basic infrastructure and institutional infrastructure that would enable its currency to serve a world like this,” said the Treasury Secretary.

Is she underestimating the forces in the game? Charles Nenner, a financial analyst and former Goldman Sachs executive, thinks so.

Sealed fate of the dollar, the US in the midst of a crash?

For years, Charles Nenner has been a proponent of the dollar’s robustness in a globalized economy. However, in an interview with USAWatchdog, he revised his position.

He now believes that the dollar is truly finished. “We have known each other for many years, and I said the dollar is going to hold up, but not anymore, not anymore.  It is really in trouble.  There is actually no reason to be in the dollar,” said Nenner.

For him, the most worrying thing is that “the economy is really going to suffer.” To the extent that an impending economic recession, similar to the Great Depression of the 1930s, is no longer excluded.

While Charles Nenner’s pessimistic view marks the end of an era, it also confirms the beginning of another era. That of Bitcoin, in this case. Some, like Arthur Hayes, the CEO of BitMEX, believe that Bitcoin will benefit from the depreciation of the US dollar. This situation should allow it to establish itself in international transactions. It’s a possibility that can’t be ignored.