The USA can do what it is doing today because of the US$ hegemony. Even its military power rides on its ability to print fiat money at will. Take that away, and the whole setup will collapse like a house of cards. Funding almost a thousand military bases all over the world, and keeping afloat all the military logistics of aircraft carriers and supporting warships and submarines would be impossible without the free printing of US$. How many countries can still be around accumulating the kind of debt the USA is holding? And the USA is intent on keeping it going without accountability.
In reality those military bases existed primarily just to prevent any country from upsetting the status quo, and is not about protecting other countries from threats per se, which is just a convenient side cover. Hence generating threats becomes part and parcel of the whole narrative to ensure those bases continue to exists as they are. That is why the USA is fighting tooth and nail to prevent the collapse of the US$ hegemony. With Russia and China spearheading the de-dollarisation move, the USA is facing not minions like Iraq or Libya, but is facing a bigger battle on its hands.
There is, in reality, nothing much the USA can do about the oncoming US$ trainwreck, short of starting a nuclear war to end it all. With more and more countries getting wiser and growing tired of letting the USA have a free ride on the hard work of others, through the printing of fiat money, countries are coming together to find an alternative to the US$ for global trade settlement, bypassing the US$. The global community must hope it will suceed, in order to to free themselves from the US$ hegemony curse.
Anonymous
2 comments:
What is the current weakness of the USD?
'The dollar will remain in demand, thanks to its success in making the Eurozone dependent on it. The British pound has little means of support, and little reason for foreigners to invest in it. The euro is a junior satellite currency to the dollar.
Without a dollar or other currency to hold their monetary reserves in, governments will continue to increase the proportion held in gold, because it doesn’t have government liabilities attached to it – so U.S. officials can’t simply grab it, as they did with Russia’s foreign reserves. Eurozone countries cannot be trusted not to follow U.S. orders to grab foreign countries’ reserves, so it will be shunned.
As the euro’s exchange rate declines against the dollar, foreign investment will decline, because investors will not want to invest in (1) a shrinking market, and (2) companies that earn domestic euros that are worth fewer and fewer dollars or other hard currency for head offices.
Of course, gold will have to be kept at home, so that it can’t simply be grabbed, as the Bank of England grabbed Venezuela’s gold and gave it to the right-wing U.S. proxy.'
So what is the current analysis of the energy and financial crises in the world?
No real crisis as much as a slow crash. Rising prices paid for what America exports: oil, food and IT monopoly goods, with living costs for consumers rising faster than wages. So there will be a tightening squeeze or most families. The middle class will discover that it really is the wage-earning class after all, and will go deeper into debt – especially if it tries to protect itself by taking out a mortgage to buy a home or even a car.'
Link to article:
https://thesaker.is/michael-hudson-gives-an-interview-to-a-german-magazine/
The USA is in reality trying to put away the competition posed by the Euro and Yen as well.
Both these two currencies have depreciated so much over the last couple of months. The Yen is reaching for its former banana status after WW2, and the Japanese economy had stagnated over the last 30 years and is still in the dumps. That is how bad a state that Japan is today.
Be careful of the Japanese upgrading its military potential though. There is an ulterior motive brewing, when the Japanese are pushed into a corner. WW1 and 2 were the result of the West trying to strangle the Japs, and they retaliated by allyiing with Germany and Italy to take on the rest of the world. This is the only way that the Japanese can think of to get out of the 30 year long rot right now. And how it will turn out is anybody's guess.
The Euro on the other hand can become toilet paper for the sake of the USA's interest. Most EU countries are all Anglo Saxons and will support each other against other non White countries. Japan is not White, although they pretended to be Whites, and expected to be treated like Whites, at one time when they were a rising economic power. They were deflated by the USA by design, as Japan was posing as an economic threat.
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