What is Next for The US Dollar?

Kim Lee

The United States have imposed sanctions on Iranian crude oil and this meant that countries will no longer be able to pay Iran in dollars or at least have transactions with Iran when it comes to their oil.  This also meant that countries, who would want to keep their relationship with United States, should learn that they will have to end all ties with Iran.

However, since there will always be countries that cannot be controlled by the sanctions imposed by the United States, they will always find a way to get back in the game especially when what Iran is boosting their economy with is an indispensable part of our economy –OIL.

What are these countries?  China and India, yes, these countries have in fact created a new way to deal with Iran without having to give up their dollar reserves and without the United States pointing fingers at them.  China and India are trading gold for oil.  

In order to get oil imports from Iran, these clever countries decided to go back old school style and try to make their countries wealthier with some Iran crude imports.  Of course, “monetizing gold” for Iran will be their problem but this is a good problem for Iran.

Iran now has an edge when it comes to their oil and China and India has opened this window for Iran.  Iran now knows that they can control countries just through their very own oil and they are only getting started.  Who needs the United States sanctions when fact is that Iran can be paid in gold and not in any other currency in the world.

So what is next for the United States dollar?  With the world becoming more open of trading indispensable goods to indispensable goods, the United States dollar will have to reach that ‘indispensable’ status and not just in terms of bank reserves or else, the world might go back to trading with gold.

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