Why De-Dollarization Didn't Start with Russia & How India Took the Lead
In a detailed commentary, it was clarified that de-dollarization did not begin because of Russia's sanctions. In fact, the Russia-Ukraine conflict strengthened the dollar under the "two-bucket theory"—where the world splits into healthy and so-called rogue nations, and in times of economic uncertainty, savings tend to move into secured U.S. dollars. This is due to the dollar’s reserve currency status and unlimited printing capability.
However, true de-dollarization started when India's Prime Minister took the lead. Two sets of countries realized key truths:
-
Oil-rich Middle East nations saw holding dollar savings as foolish—since it's a fiat currency backed by nothing.
-
Energy-consuming nations saw that doing all trade in dollars meant funding the U.S. lifestyle while weakening their own currencies.
A shift towards a pegged currency system is now evident, marking a once-in-a-century change in industry valuation and global trade models.
Unlike 2008, today's financial crises—especially those involving credit Suisse, BoJ, and U.S. banks—could lead to hyperinflation if excessive printing continues. This may cause mass chaos, even street violence for basic goods.
There's concern about India’s gold reserves in the UK, especially if global relations worsen. There will be conversion of assets like 401(k) savings to physical gold, which has zero counterparty and geopolitical risk.
He also warned Indian IT sectors relying on Western clients might suffer, as currency valuation volatility will make outsourcing less feasible. Indian stock markets may get hit too as FIIs withdraw liquidity during Western crises.
Meanwhile, Western media is blamed for deflecting real issues with climate change excuses, and even promoting insect-based food in Europe. This is seen as a response to reduced access to Asian manufacturing and agriculture due to de-dollarization.
In conclusion, a major global reset is underway, and those depending on dollar-centric models may face serious disruption.