Twitter owner Elon Musk now says that the Fate of the US Dollar Is Sealed

REUTERS PICTURE

WASHINGTON - Tesla founder and Twitter owner-Elon Musk has thrown his suggestions that the de-dollarization narrative is inevitable and the result of the US using the currency as a weapon on the world stage is over.

In a Twitter post, he further alleges that the way the greenback has been weaponized as key economic sanctions on other countries will soon have a negative impact on the US economy.

The tech billionaire entrepreneur says other countries at some point will no longer want to use the US dollar, to free themselves from dependence on America and its diktats.

“ Based on data from Morgan Stanley, since 2001, the dollar had slipped considerably in world trade. De-dollarization is real and is happening fast," the user said. "Dollar share went from 73% (2001) to 55% (2020). Went from 55% to 47% since sanctions launched on Russia, now de-dollarizing at 10x faster than the previous two decades. #gold #silver."

Musk agreed with this analysis. "If you weaponize currency enough times, other countries will stop using it," the Tesla chief said on Twitter on April 25.

For many weeks, speculation has been circulating about the decline of the dollar, the currency of world trade since the end of the Second World War.

The US dollar is in decline or at least such is the speculation that has been circulating this year.

These rumors are fed by various media headlines, starting with the reality of Russia considering using China's yuan for its global trade. Then talk followed that Saudi Arabia, a major US ally, was considering charging in yuan for its oil exports to China.

Things accelerated when France was reportedly considering buying gas from China with yuan, while Brazil and Beijing were considering no longer using the US dollar in their bilateral trade relations.

The avalanche of rumors about the demise of the US dollar was such that some headlines said that the BRICS countries -- an acronym for Brazil, Russia, India, China, and South Africa were considering developing a new reserve currency, while India was in the process of settling some trades in rupees.

All this news had a common theme: The de-dollarization of the world economic stage was underway. The greenback is slowly losing its place as the top choice in world trade and finance.

The other factor cited by most global economists is that the US economy is no longer as dominant as it was decades ago.

GAROWE ONLINE