Marc Faber believes de-dollarisation is underway, and it could have to do with the tumultuous events on the geopolitical stage.
Rising powers are contesting the post-WW2 unilateral world order with the US as the hegemon.
Could the sun be setting on American exceptionalism, with the supreme global leader shaping the rules of the game as the top dog?
Certain current events indicate that Hegmon’s power could be waning.


“Rising powers are contesting the post-WW2 unilateral world order with the US as the hegemon”
MARC FABER
Several decades ago, harsh US-led sanctions on Russia in the wake of the 2022 Ukraine invasion would have bankrupted Russia into chaos, collapse and submission. Paradoxically, cutting the target country from the US-centric dollar system was not punitive but beneficial.
No sanctions on Russia would have had more of a punitive impact since letting it load up on toxic US paper would have been a Trojan Horse and blown up its banks. So the strategy has backfired with Western-aligned banks being impacted by the worst bear market in treasuries in 250 years.
Instead, US sanctions, cutting foes from a US-centric dollar system, accelerated a multipolar world. The rise of BRICS in economic and geopolitical sway on the global stage is growing.
Bilateral trade between China and Russia is anticipated to reach $200 billion this year as trade volume increased by 32%.
China and India, at the current rate of economic growth, are expected to become the two world’s largest economies by the end of the decade, leaving the US in third place.

“Bilateral trade between China and Russia is anticipated to reach $200 billion this year as trade volume increased by 32%”
WEALTH TRAINING COMPANY
The rise of BRICS underscores Marc Faber’s belief that de-dollarisation is underway
So if trade between BRICS members keeps expanding along the so-called new Silk Road, a completely autonomous US dollar-centric system will need a new currency to store its reserves.
A weaponized USD means that anyone’s account could have their USD bank account frozen if they don’t play by these arbitrary rules of the game.
BRICS members will need a currency outside a USD-centric system to trade and store their trade surplus, which will accelerate de-dollarisation.
Moreover, because these countries’ economies are commodities and production-based, a BRICS currency is most likely going to be tied to a specified weight in gold.
Think about it. You will have a BRICS world, young demographics based on booming trade with a gold-back currency.
“A raft of top investors, from Dalio to Buffett, all agree that cash doesn’t perform well during times of war” – Wealth Training Company
Meanwhile, A USD-centric system with an unsustainable public deficit as the government funds a multi-front war around the world.
So, inflation will keep rising because war is inflationary.
In other words, the imbalance of supply and demand in the treasury market is likely to worsen, particularly if the Fed continues with quantitative tightening.
A raft of top investors, from Dalio to Buffett, all agree that cash doesn’t perform well during times of war. If the Fed doesn’t pivot to quantitative easing and buy the surplus, the bear market in long-duration treasuries could continue, thereby sending yields higher.
But equally, creating dollars to finance the purchase of treasuries debased the currency, which is also inflationary.
It is a horrible situation to be in.
Do you see a string of investors falling over themselves to buy Argentinian bonds yielding more than 50% when inflation is over 100%? The answer is no, because the peso-backed by nothing currency is a disastrous store of value.
As investors scramble into alternative stores of value, precious metals being the oldest, a rise in the price of gold would send a gold-backed BRICS currency higher.
World reserves capital flows into gold, or Bitcoin, or a BRICS currency would accelerate Marc Faber believes de-dollarisation is underway
The achilles’ heel is the public deficit, and if the treasury market continues to melt down, USD currency debasement continues, and inflation goes higher, eventually collapsing all other fiat currencies.
The value of all fiat currencies eventually goes to zero.
All Empires end in a currency collapse and bankruptcy. A worthless currency means no means to finance wars.
“when China trades with Saudi Arabia or China trades with Brazil or China trades with Russia, there’s no need for that transaction to occur in U.S. dollars” – Marc Faber
Marc Faber believes de-dollarisation is underway, but regretfully, we are more likely to see nuclear war than a USD collapse
Maybe John Lennon, who wrote the lyrics to” Imagine,” was a futurist. He sings about a world with no flags, no religion to die for, one world, one people. Will this be the song survivors of WW3 will sing to?
Marc Faber believes de-dollarisation is underway, but the real question is what is the next chapter to these troubling times
Marc Faber thinks that instead of having one global currency, it’s best for the world to have multiple currencies and that countries can trade freely with each other using their own currencies.
“In other words, when China trades with Saudi Arabia or China trades with Brazil or China trades with Russia, there’s no need for that transaction to occur in U.S. dollars. It should occur either in Saudi riyal or in Chinese yuan,” he said, adding that it would be best for the world if the US dollar system were “gradually phased out,” he said.
But who decides what is best for the world?