The Quiet Desynch: Europe's Unspoken Retreat from Dollar Hegemony
The context they conveniently omitted: FIRST INSTANCE: France's Gold Standard Challenge (1960s) General De Gaulle, noting the "exorbitant privilege" of the dollar, famously began converting France's dollar reserves into gold. This was a direct challenge to the Bretton Woods system, established in 1944, which pegged global currencies to the dollar and the dollar to gold. De Gaulle's move, while
ultimately unsuccessful in dismantling the system unilaterally, signaled deep European reservations about American monetary dominance and its ability to fund its deficits (like the Vietnam War) with printed dollars. REPETITIONS: Euro's Ambition and BRICS' Backlash The creation of the Euro in 1999 was, in part, an explicit attempt by European nations to create a rival reserve currency, reducing
dependence on the dollar. While not a direct 'strike,' it represented a significant, coordinated effort to diversify global financial power. More recently, the BRICS nations (Brazil, Russia, India, China, South Africa) have increasingly engaged in bilateral trade using local currencies, a pattern that accelerated after the 2008 financial crisis and dramatically so after the 2022 sanctions against
Russia. Data from the Bank of International Settlements (BIS) shows a 5.6% drop in the dollar's share of global reserves from 2016 to 2021, a trend that is understated given significant unreported bilateral agreements (BIS, 2022). Today, the Financial Times reports on an "uncoordinated, decentralised and gradual buyers’ strike." This isn't just about Europe avoiding American assets; it's about