Are we witnessing the beginning of de-dollarization? | The Hill
While economists were concerned about a significant drop in consumption levels arising from COVID-19-related lockdowns and suppression of demand sending crude prices to $0 per barrel two years ago, now they are concerned about the exact opposite — skyrocketing crude prices touching more than $130 per barrel and natural gas hitting $5.7 per metric million British thermal units (MMBtu).
There were also price increases on wheat, edible oils and other commodities with the potential to directly impact the average Joe not just in the U.S. and Western world but in the global south, where inflation shocks are even more acute.
Adding fuel to fire, the U.S. chose the worst possible weapon to deter Russia — economic sanctions. By sanctioning Russia, the world’s third-largest producer of crude and largest supplier of wheat, the U.S. has set off dynamite that could burst into a recession in the next six months, as several economists have predicted.