The End of the Dollar Hegemony with Nic Carter

 
 

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“Right now the integrity of the dollar is in question, people don’t trust US power, US is withdrawing from the international sphere, the international institutions we set up in 1944 are fraying; nobody really trusts them anymore.”
— Nic Carter

SHOW DESCRIPTION

Nic Carter is a Partner at Castle Island Ventures and co-founder and Chairman of Coin Metrics. In this interview, we discuss the seizure of Russian Central Bank assets by the G7, the demise of US hegemony, and a multipolar multi-reserve world.

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Whilst it is arguable whether America’s geopolitical reach can be classed as an empire, the decline of its hegemonic power is compared to the passing of great empires of the past. Such analysis shows that there are no fixed dates to assign to the actual fall of empires; declines are marked by a prolonged unwinding of influence and cohesiveness.

Nevertheless, the atrophying of empires are signposted by critical dates: the sacking of Rome by the Visigoths in 410; the humiliation of Britain caused by the 1956 Suez Crisis; the symbolic impact on the USSR of the fall of the Berlin wall on November 9th 1989.

Currently, we are living through equally tumultuous times, and February 26th 2022 may be one such date for the history books. It was when the G7, led by the US, seized $630B of Russia’s foreign reserves.

With the grim humanitarian impacts of the Ukraine Russia conflict being witnessed on a daily basis, this seemed like an appropriate non-violent measure. However, its scale and likely impact is and will be unprecedented.

The role of the US dollar has been eroded over the past few decades as economic sanctions have been increasingly deployed as a coercive tool of power. Nevertheless, the G7 freezing Russian access to its foreign assets is a crossing the Rubicon moment. No longer will the US dollar be a unifying store of value across the world. The ramifications are huge.

TIMESTAMPS

00:03:54: Introductions
00:08:06: The cancelling of Russia and the effect on its people
00:13:30: Global impact of the G7 seizure of Russian assets
00:22:57: Commodity prices and human flourishing
00:25:30: Alternative stores of value
00:28:52: The end of the Bretton Woods era
00:30:35: Bitcoin and gold as stores of value
00:39:47: The US policy on financial sanctions
00:45:14: China and the decreasing dollar dominance
00:51:01: A new multi-reserve world
00:57:01: Bitcoin is the last line of defence
01:01:33: The dollar credibility crisis
01:07:51: The end of the dollar hegemony
01:12:26: Final comments

 

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SHOW NOTES

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Mentioned in the interview:

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