Instead of focusing on a possible interest rate hike from the Federal Reserve or a Greek departure from the eurozone, investors should be worried about a U.S. dollar collapse in 2015.
At least that is according to former Republican congressman Ron Paul.
Dr. Paul contends that America is far too aggressive in its foreign policy. The U.S.’s interference in sovereign states, particularly Russia and China, is self-destructive, says the long-time libertarian.
“The United States government is desperately trying to cling to the notion of a unipolar world,” said Dr. Paul. “But the world order is not unipolar, and the existence of Russia and China is a stark reminder of that.” (Source: Ron Paul Institute, June 21, 2015.)
Dr. Paul’s comments come as Russian assets were seized in Belgium and France after a ruling from the Permanent Court of Arbitration in the Hague. The court sided with former shareholders of Russian oil giant Yukos in their suit against the Russian government.
Yukos was driven to bankruptcy in 2006 after a state-owned entity had appropriated its assets. The court awarded shareholders with a $50.0 billion victory. (Source: British Broadcasting Corporation, June 19, 2015.)
The Russian government responded by saying it does not acknowledge the court’s authority; which is when the Belgium government seized its assets. Dr. Paul sees the move as politically motivated.
“The timing of these actions is quite curious, coming as the Greek crisis in the EU seems to be reaching a tipping point and Greece, having perhaps abandoned the possibility of rapprochement with Europe, has been making overtures to Russia to help bail it out of its mess.”
Russia has been increasingly isolated on the world stage since its invasion of Ukraine. As a result, it has pivoted towards China. China has an official policy of non-intervention in the domestic affairs of other countries, making them Russia’s ideal partners.
Dr. Paul warns that “continued economic pressure from the West may very well necessitate a Sino-Russian monetary arrangement that will eventually dethrone the dollar.”