Dollar decline

Story that caught my mind, “Kenya Abandons U.S. Dollar, Petrodollar Decline Accelerates” and one of the key phrases, “Kenya has joined the long and growing list of former staunch American geopolitical allies to ditch the dollar in favor of using local currencies, gold or other precious metals, or cryptocurrency for international transactions of oil and other precious commodities.”

The failure of Biden foreign policies is proving disastrous, and this will be a mess that the next President will inherit but a problem that may be unfixable.   As reported by Nigeria Ripples, “The President of Kenya, William Ruto, has spoken against the use of the United States Dollar (USD) during trade between African countries. Ruto said traders from Kenya and Djibouti are facilitating trade with the dollar when they could take advantage of the pan-African payment and settlement system (PAPSS) created by Afreximbank. He suggested African countries should trade with currencies on the continent rather than depending on US legal tender, as traders often must search for dollars to complete transactions. The president spoke about the dollarisation of the African market on Tuesday during his address at the Djibouti parliament on Tuesday. According to Ruto, prioritising local currencies ahead of the dollar during trading between two African countries will ease trade.”

 Multinational banks are concern about the decline of the United States and this process has been accelerated by America’s proxy war in Ukraine and United States efforts to cut Russian out of the Global economy. For many nations, they fear the power of the United States to force them out of the economic system and for many of these countries, they simply want more option in the future. Another aspect the fecklessness of the Biden administration has reduced confidence in the United States leadership and our economic policies of excessive debts, increased spending and inflation is leading other nations to doubt if we are responsible enough to continue to be the reserve currency. As on pundit noted, “Beyond that, there are a lot of other reasons the petrodollar is collapsing that cannot be laid at the Biden entity’s feet. But it surely does not help having a geriatric corpse wheeled around the world and said to be the chief executive.”

Dollar allowed us to exercise leadership in the world and now we are risking our own economic decline and accelerate our economic decline. The decline of the dollar worldwide and many of our friends thinking elsewhere is another example of our decline. It has been said that Decline is a choice, and we are making that choice.