Economist Warns of ‘Catastrophic’ Fall in American Living Standard
Economist Peter St Onge has warned that U.S. dollar weaponization will lead to “soaring inflation, a catastrophic fallen American standard of living, and a U.S. that falls off the world stage.” He warned about the dire consequences of weaponizing the U.S. dollar in a video he posted on Twitter Monday. Citing a former Morgan Stanley analyst, Stephen Jen, stating that the U.S. dollar has already suffered a “stunning collapse” and is losing its reserve currency status at an “alarming pace,” St Onge stressed.
“The dollar share went from 73% in 2001 to 55% in 2021, at which point it fell off a cliff, losing market share 10 times faster,” the economist detailed. “The dollar plunged 8 percentage points in share in a single year to just 47% so we lost about double the entire share of the Chinese yuan. And at that pace, the U.S. dollar would be eclipsed in about 6 years.”
St Onge went on to explain that what severely affected the USD in 2022 was sanctions. He noted that last year, the U.S. froze approximately $300 billion in Russian central bank assets. Numerous individuals have expressed similar warnings. A growing number of countries are also ramping up efforts to shift away from using the U.S. dollar in trade settlements. The Syrian foreign minister said last week that the U.S. imposes sanctions to steal targeted nations’ assets and keep them under its hegemony.
