We are witnessing an economic transition the likes the world has never seen. It’s no secret that fiat currencies typically have a shelf life of about 40 years but the control the American Dollar has had on global markets is unmatched in world history, until now.
Economic sanctions are a tool of economic war that the United States has used against its advisories during recent times. Get out of line and a countries ability to function on the global market is severely hampered leading to economic turmoil. This weapon has been very efficient in its impact against those who do not follow the American economic line.
These sanctions are all over the news and have been used against Russia for many years. The extent of their usage has lead to the Russian government to limit its transitions within the Dollar and recently moved banking functions outside of the Western Banking System.
The problem ensues when countries want to purchase Russian commodities but the international community limits this business transition. In the past, less powerful countries have obeyed with Western Sanctions to not disturb the global economic power.
A large crisis point is now ensuing in respect to Russian oil and natural gas and the demand that Europe has for these commodities. Europe is completely dependent on this Russia trade and without natural gas, Europe will freeze.
American sanctions has stated that no-one can do business with Russia in many aspects of their economy but the power play has changed to being controlled by the Russian narrative vs the American narrative. Russia not only has refused to trade their commodities outside of the Ruble but have also challenged the notion that they may limit trade all together with hostile counties. Combine this with the talk of backing the Russian currency with gold and we may witness a possible transfer of economic power from the West to the East.
Economic sanctions work as long as everyone agrees to follow them. When this agreement breaks down, they have no power.
It will only be a matter of time before Europe has to choose between possible economic and physical war with Russia or agreeing to work with this country to gain access to their commodities. Being a leader who choses war and famine over economic cooperation will be very unfavorable for any politician, especially during elections.
Combine this possible transition to Eastern economic power with the contemplation of Russia to sell oil in Bitcoin and we see the decline of the American Dollar coming rapidly.
Will the Dollar be able to fight off all these pressures or will it collapse? This is a questions we must ask ourselves as we may witness a drastic change to the global power structure while our economic future is uncertain.