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In recent years, Uncle Sam’s money printer has been working overtime. The Federal Reserve added more than $12 trillion to the base money supply between February and June of 2020. That’s more than four times as many dollars than has ever existed in just five months, and it didn’t stop there. At its peak, base money hit $20 trillion before receding to $18 trillion. More frightening than the growth of the money supply is the rate at which it has grown.

In 1971 the national debt was $400 billion. In 2001 it was $5.7 trillion--a $5.3 trillion increase in 30 years. From 2001 to now we’ve reached $34 trillion--over $28 trillion in just 23 years. Our debt isn’t just increasing; it’s increasing exponentially.

Some of our trading partners have grown tired of their foreign exchange reserves being devalued by America’s belligerent monetary policies. Saudi Arabia, Russia, and China have expressed a willingness to trade in alternative currencies; the BRICS block is expanding expressly to counter dollar hegemony; and recent gold purchases by central banks have never been higher (Eastern central banks, of course, not Western ones).

Perhaps the most damning evidence of dedollarization is the decrease of U.S. dollars held in foreign reserves. In 2000, more than 71% of foreign exchange reserves were comprised of U.S. dollars. Fast-forward to today and that number has dropped to just under 59% -- a change that should give pause to even the most steadfast dollar bull.

As more countries circumvent the dollar reserve system, global demand for dollars will no longer be strong enough to absorb all the currency created by the U.S., which will lead to rising prices stateside.