Putin Exposes Dollar Vulnerability as China Eyes New Financial Path

At an International Economic Forum, Russian President Vladimir Putin highlighted the vulnerability of countries to having their access to legitimate assets and Western financial payment infrastructure cut off. This has sparked global discussions about dollar avoidance.

Santiago Capital believes that it's difficult for other nations to make the US dollar fall against its fiat peers without the US wanting it to happen, but they may be underestimating China's capabilities.

China could potentially force the issue by implementing policies such as floating the renminbi, ending capital controls, stopping export subsidies, being willing to accept trade deficits, and building a massive global bond market. These steps would not only help China's economy but also reduce its reliance on the US dollar.