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Why the Dollar-Based International System Is Breaking Up

by Discern TV
April 1, 2023
in All Around the Web
Reading Time: 1 min read
Why the Dollar-Based International System Is Breaking Up

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The Federal Reserve’s higher interest rates after 12 years of zero interest rates are devaluing the asset side of banks’ balance sheets. This frightens depositors and they withdraw their deposits. Depositors also are withdrawing their money because they can get much higher interest rates on safe US Treasuries. According to some reports, $1 trillion has already been withdrawn from US banks. Bloomberg is reporting rumors that Schwab’s $7 Trillion empire based on low rates is cracking from bond losses. In the face of this vulnerability of the financial system, the Federal Reserve raised interest rates further.

There is also the problem of the currency and interest rate derivatives. No one knows the risk in these instruments. The US dollar itself is declining in use as world reserve currency. Alarmed by Washington’s weaponization of […]

Excerpt Sourced From: discern.tv

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