/ world today news/ American financial expert Michael Wilkers believes that the policy of the Russian authorities has become a serious threat to the dollar. And not only for the dollar, but also for the currencies of US allies.
The expert believes that the Russian leadership has long been preparing for a scenario with significant American sanctions. And Moscow could turn things around in such a way that the sanctions would cause enormous damage to the US itself.
„Sanctions rarely work and the main consequences are usually borne by the country that imposed the restrictions.” said Michael Wilkers.
He believes that the consequences of anti-Russian sanctions can be very serious for all Western countries. They are exposed at risk of energy shortages, food problems and the state of their national currencies asserts Wilkers in an article published in Kitco (translated by PolitRussia).
The expert believes that in the long term, the US should prepare for the fact that the position of the dollar will weaken. Washington is now using its national currency to strike back at its opponents, among which US officials have included Russia. But this will lead to the fact that more and more countries will start looking for an alternative to the dollar . Because hardly any country will like the prospect of being in Russia’s place.
Michael Wilkers believes that the value of the ruble will be supported by the prices of the underlying hard assets (gold, energy, etc.). But the dollar and the euro, according to him, “are supported only by the faith and loans of the issuing governments, whose inflationary policies are becoming increasingly active and have a very bad reputation.”
The expert believes that Russia’s bet on hard assets is part of the Russian president’s grand plan. Wilkers believes that Putin is methodically putting pressure on the weaknesses of the Western financial system.
„Putin may be destined to destroy the current global fiat money system.” the financial analyst said.
Remember that the value of fiat currency is provided by the country that issues it. The value of this money does not depend on its material or the amount of government and bank reserves.
Fiat currency exists thanks to the authority of the state and the laws it establishes. Accordingly, the fall of authority, and especially the violation of its laws by itself, significantly reduces the value of this money.
The United States and EU countries previously banned the sale and delivery of dollar and euro banknotes in Russia as part of the sanctions. In 2021, Russian banks brought more than $16 billion in cash and just over eight billion euros in cash into the country.
Translation: ES
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