De-Dollarization’s Next $24 Trillion Domino

[Inside Wall Street with Nomi Prins]( De-Dollarization’s Next $24 Trillion Domino By Clint Brewer, Analyst, Inside Wall Street with Nomi Prins The push to dethrone the dollar as the world’s reserve currency is gaining momentum. It’s a trend Inside Wall Street editor Nomi Prins has been warning about in these pages. She’s shown you the effects de-dollarization will have on global trade (catch up on the latest [here]( and [here](. And as we’ll show you today, de-dollarization will also affect well beyond that. It could impact everything from your mortgage to your car payment. It could even help trigger a credit crisis in the U.S. That’s because the financial markets are a complex, interconnected web. Tug on one strand of the web, and the whole thing starts shifting. Pull hard enough, the web falls apart. But if you know how to untangle that web and identify the weak links, you can prepare for what comes next. And right now, one of those weak links is in a $24 trillion market already feeling the pain of de-dollarization. Let me explain… Recommended Link [“You need at least $100 of this asset – and it’s NOT gold” – Dr. Nomi Prins]( [image]( $100 is all you need… Former Goldman Sachs managing director Dr. Nomi Prins has identified an investment she’s calling ‘the world’s hardest asset’ – and she’s recommending it to friends, family, and followers. She’s talked about it on podcasts… live TV… and in her newest, bestselling book, Permanent Distortion. Dr. Prins says: “This asset has nothing to do with gold or silver, but it has many of the same features to protect your wealth – and preserve your privacy.” As the turbulence in our world grows worse and worse… [Click here now to see what Nomi is recommending before it’s too late.]( -- Falling Demand for This $24 Trillion Market The dollar has long been the world’s reserve currency, meaning most transactions are done in dollars. In fact, by some estimates, upwards of 90% of all global trade is settled in dollars. That means countries that focus on exporting goods are being paid dollars in exchange for their products. That could be oil from Saudi Arabia to electronics from China. And when another country finds itself awash in dollars, it often parks that cash in dollar-denominated U.S. Treasury bonds. That’s a big reason why foreign nations are major holders of U.S. Treasuries. They own over $7 trillion of all the Treasuries outstanding. That’s nearly a quarter of all the Treasuries in circulation – a market worth $24 trillion total. But as Nomi has shown you, several countries have started transacting in other currencies. The BRICS bloc – made up of Brazil, Russia, India, China, and South Africa – is leading this charge against the dollar. China, for example, has reportedly been buying Russian commodities using its yuan. Russia is also using the yuan to settle 25% of its trade with the rest of the world. Even India bought oil using the yuan instead of the dollar this year. That means those countries don’t need to park as many dollars in Treasuries… removing a huge source of demand. Not only that, but they’re also actively dumping their Treasury holdings. In the past month alone, countries among the BRICS bloc have sold $17 billion in Treasuries. Recommended Link [Sell Every Stock Except ONE (ticker revealed)]( [image]( Jeff Clark predicted the crashes of 2008, 2020, & 2022 – helping his readers dodge huge losses. He then helped double his readers’ money 13 TIMES in the last year alone… But after watching his OWN 23-year-old son lose -60% in risky crypto & tech stocks… Jeff is finally coming forward with his biggest WARNING yet. Jeff says: “Sell Your Stocks BEFORE The Stock Shock!” [Click Here to See Jeff’s New Warning.]( P.S. – Jeff refuses to watch his own son lose any more money in risky investments. So, he is rolling the camera to help him win back all his losses – and then some – [with just ONE ticker.]( -- One Trigger for a U.S. Credit Crisis How does that impact your own finances today? Two words: interest rates. Less demand for Treasuries pushes their price lower. As the price goes down, the interest rate goes up. (It’s an inverse relationship between price and interest rates that all bonds have.) And just in the last five months, the interest rate on the 10-year Treasury has gone from 3.58% to 4.81%. You can see that in the chart below… [Chart] That’s the highest level in 16 years. And the pullback in foreign buying of Treasuries couldn’t come at a worse time. That’s because of the new supply of Treasuries set to hit the market as the government keeps running massive deficits. After hitting $2 trillion this year, the deficit is projected to hit another $1.8 trillion in the coming fiscal year. So the government must borrow and issue more Treasuries to make up for the shortfall. But at the same time, foreign ownership of U.S. Treasuries keeps trending lower. And that’s not just a recent development. It’s down to 24% compared to 33% a decade ago. That raises the prospect of higher rates still. And that impacts your cost of borrowing for everything from houses to student loans and cars. But it’s not just personal finances. Businesses will feel the weight of higher interest rates as well. And the most vulnerable are the issuers of high-yield debt. Recommended Link [Digital Dollar Could Send These Three Stocks Booming]( [image]( A digital dollar (or CBDC) could soon replace the U.S. dollar. Most people could end up holding worthless dollars. But a few could get rich from this new shift. You see, if you know which companies are working on these CBDC projects, you could come out of this shift wealthier than you ever thought possible.. But you need to act fast. [Click here to get the exact steps to take right now.]( -- Issuers of high-yield debt are already on shaky financial ground. Fitch Ratings expects default rates to more than double just this year. And there’s over $600 billion in high-yield debt that matures in 2024 and 2025. If rates stay high or keep rising even further, that will pose a major risk for companies’ ability to pay back their debt. That’s because higher interest rates make refinancing debt more expensive. So you should steer clear of junk bond investments like the SPDR Bloomberg High Yield Bond ETF (JNK). Instead, focus on companies with high-quality balance sheets that have low levels of debt. These are the kind of companies Nomi recommends at her Distortion Report advisory. De-dollarization will be felt throughout the markets in many ways. Understanding that tangled web will be key to staying one step ahead. Regards, Clint Brewer Analyst, Inside Wall Street with Nomi Prins P.S. Most people think inflation, war, and a currency collapse are the biggest risks to our financial system. But sadly, those problems don’t even begin to explain what is about to happen in the months ahead. Editor Nomi Prins says a dangerous plan is being rolled out across America. Originally found on page 314 of a document from the desk of former Speaker of the House Nancy Pelosi… It’s a scheme to enact enormous change to the appearance and value of our money – a total overhaul of our financial system. If you have more than $2,500 in a U.S. bank account or retirement plan… Or if you simply collect a fixed income from the federal government… You are at risk. So don’t wait until it’s too late. [Click here to learn how you can take control of your own financial future in this historic shift that’s coming](. --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). MAILBAG What effects do you believe de-dollarization will have on the economy? What steps are you taking in order to ensure your financial security during this time? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). IN CASE YOU MISSED IT… [Market Wizard who made $95 million for his clients in 2008 – and predicted the 2022 collapse – reveals his strategy:]( The One-Ticker Retirement Plan How to make all the money you need – in any market – using a single stock. [Click here for the name of the ticker…]( [image]( [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. 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