The Great Shift: End of Dollar Era and the Return of Asian Economic Power

For most of recorded history—around 1,700 of the last 2,000 yearsIndia and China produced more than 50% of the world’s GDP. This shows how rich Asia historically was, and the last 300 years of Western colonial dominance are now being seen as an aberration in this long history. During colonization, British looted wealth from Asia, especially India, and used those savings to build modern Western economies, including the USA, Canada, and Australia.

From 1971, when President Nixon delinked the US dollar from gold, and especially after 1973, when Henry Kissinger made a deal with Saudi Arabia to sell oil only in US dollars (called petrodollar), the West dominated global economics. The Middle East got security, and the US dollar became the world’s reserve currency, leading to 50 years of dollarization (1973–2023).

But that system is collapsing now. The US’s role in the financialization of Asian and Middle Eastern production is crumbling. The world is slowly rejecting fiat currencies like the dollar, and real value is returning to energy and metals like gold and silver.

Historically, reserve currency status shifts when energy and gold flow from one power to another. Just like the US replaced Britain after collecting gold during World War II, Asia (especially India and China) is now collecting gold and silver from the West.

For example, by 2022, India had reportedly drained gold stocks from London's Bullion Market and COMEX. As Asia regains physical control of gold and silver, the US dollar’s reserve status is at risk.

Once the world no longer trades in dollars, Western nations lose their ability to print money endlessly. That would lead to massive cuts in social benefits like Medicare, 401(k), pensions, etc., especially in the US and Europe. Also, if manufacturing shifts back to the West, products will become expensive compared to cheap Asian goods, forcing American salary cuts of up to 60% to compete.

A new BRICS currency (from Brazil, Russia, India, China, and South Africa) is expected to launch, with 13 more countries joining the de-dollarization drive. Pilot transactions may begin next year, leading to the gradual fall of the US dollar as the world’s reserve currency.

Popular posts from this blog

The Facade of Power: Unraveling Body Doubles, De-Dollarization, and Global Shifts

The Dollar, Proxies, and the Changing Global Order

Revolutionary Reforms: Holding Leaders Accountable and Shaping India's Future