Russian President Vladimir Putin succinctly summarized the shifting tectonic plates of geopolitics.
Vladimir Putin: "The Dollar Enjoyed Great Trust Around The World. But For Some Reason It Is Being Used As A Political Weapon, Imposing Restrictions. Many Countries Are Now Turning Away From The Dollar As A Reserve Currency. US Dollar Will Collapse Soon." pic.twitter.com/03WunqgCDd
— Ben Rickert (@Ben__Rickert) November 15, 2019
First he explained the status quo...
"The Dollar enjoyed great trust around the world. But, for some reason, it is now being used as a political weapon to impose restrictions."
Then Putin explained the consequences...
"Many countries are now turning away from the Dollar as a Reserve Currency."
And ultimately what happens...
"US Dollar will collapse soon."
And just like that, it was gone. Remember "nothing lasts forever"...
As Bloomberg reports, Russia's central bank has been the largest buyer of gold in the past few years.
Source: Bloomberg
Of course, Putin is not the first (and won't be the last) to suggest the end is nigh for the dollar...
The World Bank's former chief economist wants to replace the US dollar with a single global super-currency, saying it will create a more stable global financial system.
"The dominance of the greenback is the root cause of global financial and economic crises," Justin Yifu Lin told Bruegel, a Brussels-based policy-research think tank. "The solution to this is to replace the national currency with a global currency."
Warren Buffett once explained that "for 240 years it’s been a terrible mistake to bet against America, and now is no time to start."
We don't mean to rain on his parade too much, but the following charts suggest time is ticking, as the world transitions from dollars to non-fiat reserves...
Source: Bloomberg
