De-Dollarization: America’s Gift to China’s Yuan

The West’s obsession with sanctions has handed China a golden opportunity to challenge the U.S. dollar’s dominance. By freezing Russia out of the global financial system, Washington has done more to boost the Chinese yuan than Beijing could have ever dreamed. Western sanctions, designed to cripple Russia, have instead pushed Moscow straight into China’s arms, giving the yuan a massive boost in global trade. Sanctions: The Ultimate Backfire When the West cut Russia off from SWIFT and froze its dollar and euro reserves, they assumed they were crippling the Kremlin. But here’s the reality: Moscow didn’t collapse; it adapted. Russia shifted its trade to the yuan, bypassing Western financial systems entirely. What’s worse? China gladly stepped in, using this chaos to further its own agenda. As Russia's energy deals with China skyrocketed, so did yuan transactions—hitting a staggering 53% of Russian-Chinese trade in July 2023. The kicker? Ten years ago, 80% of China’s trade was conducted in U.S. dollars. Now, that figure is crumbling. The dollar’s grip is slipping, and Washington doesn’t even seem to notice. The BRICS Coup: A Multipolar World is Coming BRICS nations, including economic heavyweights like Brazil and India, are taking notes. They see Russia’s escape from Western financial control and wonder if they’re next in line for sanctions. The answer? Ditch the dollar. BRICS is already discussing a shared currency to break free from U.S. financial hegemony. Saudi Arabia, Iran, and Argentina are following suit, opting for yuan-based trade to bypass the dollar and safeguard their reserves from Washington’s overreach. This isn’t a slow march—it’s a sprint toward a multipolar world, where the U.S. dollar loses its crown. The same sanctions designed to isolate Russia are instead fueling the fire of de-dollarization, with China waiting eagerly in the wings. Capital Controls: China’s Self-Imposed Chains For all its gains, China isn’t out of the woods yet. The yuan may be rising, but it’s still shackled by Beijing’s draconian capital controls. While the Communist Party likes to tout its “financial power” ambitions, the truth is, the yuan isn’t even fully convertible with other currencies. China’s leaders are terrified of a repeat of the 1997 Asian Financial Crisis, where currency speculation gutted entire economies. They’d rather keep a tight grip on their currency than open the floodgates to the global market. But here's the problem: a reserve currency can’t thrive in chains. As long as Beijing keeps the yuan locked down, it will never fully replace the dollar. And yet, they seem content to play a dangerous game of devaluation whenever it suits them—propping up exports at the expense of long-term financial stability. The Real Threat: U.S. Complacency While the yuan rises and BRICS prepares its escape, what’s the U.S. doing? Sleeping. Politicians are too busy with petty squabbles to realize the dollar’s throne is under siege. Donald Trump may be one of the few who sees the writing on the wall, threatening 100% tariffs on countries that ditch the dollar. But this kind of knee-jerk reaction won’t stop the global shift already in motion. Make no mistake: the dollar's reign isn’t eternal. The more Washington weaponizes its financial system, the more countries will look for alternatives. The U.S. could wake up one day to find the dollar is no longer the undisputed king—and it will have no one to blame but itself.

De-Dollarization: America’s Gift to China’s Yuan

Mr. Anderson Sep 13

Article Summary

Join the Inner Circle to get full access to these articles

Bill Brocius | Nov 5

Shadow Banks Are Taking Over: The Credit Crisis Bound to Destroy American Wealth

Bill Brocius | Nov 4

IS THE LEFT PLANNING TO DECLARE MARTIAL LAW IF TRUMP WINS AGAIN?

Bill Brocius | Nov 1

FDIC Can’t Save You: Gold May Be the Last Lifeline in a Crumbling Financial Order

7 steps - Lead Gen (popover & inserted into pages)