- A coalition of 21 countries, including BRICS and ASEAN, has decided to detach from the US dollar by 2023.
- Elon Musk provides insights into the reasons behind this strategic pivot and highlights US foreign policy as a key factor.
In a historic and transformative move, a coalition of 21 countries has collectively ratified their decision to break away from the US dollar by the year 2023. Leading this exodus are prominent blocs like BRICS (Brazil, Russia, India, China, South Africa) and ASEAN (Association of Southeast Asian Nations). These nations are demonstrating a clear preference for utilizing their local currencies in global trade, signaling a significant departure from reliance on the US dollar.
The driving force behind this transition is the mounting pressure exerted by the White House on emerging nations. The aggressive stance taken by the United States has incited not only BRICS and ASEAN but also several other nations to reconsider their dependency on the US dollar. Such a monumental shift raises critical questions about the potential repercussions on the American economy.
Offering insights into this complex global financial puzzle, Elon Musk, the charismatic CEO of Tesla, identified US foreign policy as a primary factor behind this strategic pivot. He characterized US foreign policy as “heavily one-sided” and explained that such policies unintentionally hinder the economic growth and development of emerging nations. This perceived imbalance, combined with the US’s assertive approach, has motivated countries within the BRICS and ASEAN alliances to explore alternatives to the US dollar.
Additionally, Musk pointed out that the US’s punitive measures, particularly in the form of sanctions against nations, have not gone unnoticed. These actions appear retaliatory in nature, pushing developing countries further away from the dollar and putting pressure on the US. This pressure is exacerbated as the US grapples with potential challenges in funding its deficits.
Taking to Twitter to contribute to the ongoing discussion, Musk expressed his concern:
“SERIOUS ISSUE. US POLICY HAS BEEN TOO HEAVY-HANDED, MAKING COUNTRIES WANT TO DITCH THE DOLLAR.”
The Implications of US Policies
Musk further elaborated on the cascading effects of US policy, emphasizing another significant concern. He highlighted the US’s tendency to import inflation, a situation compounded by excessive government spending. This financial strategy forces other nations to inadvertently bear a substantial portion of US inflation.
In recent times, the US has imposed sanctions on various countries, including Russia, Iran, Iraq, and Libya, citing alleged support for terrorism and direct conflicts as the basis for these decisions. This underscores the critical role of geopolitics in shaping the global economic landscape.
As the year 2023 approaches, the world watches closely to see how this monumental departure from the US dollar will impact global trade and financial dynamics.