Demand for dollars in the world has begun to decline, so States are losing the ability to print their money uncontrollably. About this “Prime Minister” declaration Oleg Syrovatkin, Principal Analyst for Otkritie Investments Global Research.
“US officials have been raising rates for a year to fight inflation. This leads to a significant decrease in the cost of government bonds, which have a large weight in the portfolios of banks. As a result, he had losses that were exacerbated by the “pullback” of shares, Syrovatkin said.
According to him, this creates preconditions for mass withdrawals from accounts. All this puts the US authorities in front of a difficult choice. It’s about choosing between saving the country’s financial system, sacrificing the dollar, or vice versa. At the same time, saving everything and immediately will not work.
He added that the way to save the financial system is to stop the nomadic cycle of rate hikes. In this case, however, inflation will get out of control, which will hit the dollar hard. In this case, since the demand for the American currency will decrease, the USA will not be able to print it uncontrollably.
On March 8, former Central Intelligence Agency (CIA) adviser James Rickards declarationThat the anti-Russian sanctions will gradually force the whole world to give up the dollar. Rickards described the desire of other countries to trade with Moscow as one of the main factors in the failure of Western, especially American, sanctions against Russia.