Sanctions Spur a Massive Decline in Western Hegemony as the World De-Dollarizes

By Matthew Piepenburg

Partner

April 1, 2022

Matterhorn Asset Management principal, Matthew Piepenburg, sits down with Tom Bodrovics of Palisades Gold Radio to discuss the seismic shifts in the global financial system now emerging in the wake of Russian sanctions. Pulling from data not otherwise easily available from legacy media sources, Matthew first addresses the foundational need to think beyond the highly selective and fractured Western narrative to consider current and future events from a broader and more informed perspective. Toward this end, Matthew argues that the hegemony of the U.S. Dollar in particular, and western financial strength/leadership in general, is now in open decline.

This decline is premised on years of staggering levels of self-inflicted, unsustainable and grossly mismanaged Western debt levels which have weakened Western options both politically and economically. The myopic and headline-grabbing sanctimony of Russian sanctions (freezing FX reserves, blocking SWIFT-dollar payment systems and access to IMF SDRs) ignores the otherwise massive and negative consequences for the West in general and the world reserve currency in particular. Russia is now aligning more directly with China to de-dollarize international markets on everything from “gold for commodities” to the slow decline of the Petrodollar system, all of which leads to decreased USD demand and rising inflationary forces.

The manifold implications behind this now irreversible trend toward de-dollarization are staggering and cannot be understated, despite every effort by the legacy media to ignore the same. The unintended ripple effects on currencies, central bank policies, debt expansion and inflationary forces clearly demonstrate that these sanctions will and are backfiring in real time. Needless to say, gold emerges once again as an obvious and necessary antidote to the growing financial poisons discussed below in this comprehensive look at a changing financial world.