-- Sovereignty.
Countries, especially developing ones, no longer have to let the US
dictate their domestic and foreign policies. No more fear of sanctions
that bully countries, corporations, politicians and individuals.
-- An America with diminished ability to print dollars. No
more trillions of dollars out of thin air, while the USD stays strong.
When dedollarization reaches a certain threshold, the US will be forced
to play by the same rule as others. This means fewer US military bases
around the world, fewer US-funded NGOs that start color revolutions,
fewer politicians being bribed around the world and so on.
Basically, a fairer, less corrupt world. More “free market” and “free elections.”
-- Free to trade!
Anyone can trade anything with anyone without Uncle Sam’s permission or
threats. Same for investments. True freedom. While the US markets
itself as a proponent of free trade, nothing can be farther from truth.
This won’t just help countries like Cuba, Venezuela and North Korea, but
everyone. For example, if India wants to build a seaport in Iran, it
can be done without begging the US for permission.
The world’s GDP will literally go up due to dedollarization!
-- Cost savings:
No middleman (US banks) taking commissions. For example, when China
wants to buy oil from Saudi Arabia, both countries must use US banks to
do the trade, and the banks take a commission for their “work.” It is
estimated that the commission US banks earn in a year is almost equal to
the GDP of a country like Portugal.
-- Privacy: Using US
banks and SWIFT mean that the US gets to spy on everyone. By
circumventing this system countries gain more privacy and freedom.
-- Save time: Faster transactions in local currencies. No American banks needed.
-- Less Exploitation of Developing Nations:
The US dollar hegemony means that every country needs US dollar to
survive. This artificial demand gives the US enormous power and makes
the dollar strong. Thus, people in Mexico, China, Vietnam, India,
Bangladesh, Africa etc. are forced to work for $1 or few pennies per
hour to make products that are sold for hundreds or thousands of dollars
by American/European corporations.
The US dollar is also used to
destroy currencies of other countries for political and economic
reasons, as we are seeing in Turkey, where the Lira has lost more 50% of
its value in the last two years, as the US tried to carry out a regime
change by disrupting the economy and getting rid of Erdogan.
-- Boost in global e-commerce and tourism: Way more options than under the current dollar regime.
-- Debt Trap Gone:
Far less debt trap and exploitation by Western countries and
institutions like IMF and World Bank. External debts in US dollar are
one of the primary tools used to impose austerity and privatization on
developing countries. Look what’s happening right now in Sri Lanka,
Pakistan, Argentina, Egypt etc. This has been going on for decades.
-- FOREX? The entire concept of foreign exchange reserves will become less relevant since more trade will be done in local currencies.
Dollar,
Euro and Yuan will likely be the three leading but equal choices as
reserve currencies. There might also be a BRICS currency, if they manage
to implement it wisely. No one country of region — USA, Europe or China
— can bully others.
-- True Democracy: Multicurrency, multi-lenders, multi-partners… all these choices mean democratization of global finance.
No more monopoly, no more hegemony.
A multipolar and more just world will arise out of de-dollarization.
Anonymous
The dollar is your currency and your problem
ReplyDelete"The dollar is our currency, but your problem," then-U.S. Treasury Secretary John Connally told European finance ministers in 1971.
His comment has proved prophetic. The monetary policy of the administration of U.S. President Joe Biden is driving the International Monetary Fund into a volatile corner while current Treasury Secretary Janet Yellen is seeking to hold China responsible.
Due to U.S.-China tensions, financial flows are increasingly being channeled to countries deemed "geopolitically close" to one side or the other. Decoupling also threatens to strip the IMF of meaning, though the agency is already losing significance.
China has spurned repeated requests from Yellen to visit the country while drifting further away from the U.S. and IMF in terms of policy.
Beijing is clearly seeking to break the dollar's stranglehold and has been trimming its holdings of U.S. Treasury bonds. While the size of its portfolio ticked higher in March, according to the latest data from Yellen's department, this marked only a slight rebound from the 13-year low of $848.8 billion seen with its holdings in February.
The U.S. too wants China's cooperation, but at this point, Beijing's reply is: "The dollar is your currency and your problem."
The way things are moving though, the new line may be: "The yuan is our currency, but your problem."
The MSM is spreading fear and anxiety over the de-dollarisation move by BRICS, and particularly China. All the narrative seems to be that there is going to be gloom and doom if the US$ hegemony does not or is not allowed to remain.
ReplyDeleteWould the world be resinged to the fate of being forever held hostage or take a gamble to unshackle from the US$ hegemony, once and for all? There is always a price to pay for everything, but what will be the benefits of doing so if de-dollarisation is successfully implemented? There are pros and cons to be weighed.
Thus far, it has been shown that countries can indeed do trade and settlement outside of the US$ and nothing untoward has happened with that. It is time to move forward in a simpler, cheaper and unhindered way of doing global deals. If big countries can do it, more so can smaller countries follow. After all, global trade is not about just doing business with the USA alone. What has the USA provided the world with, besides weapons of destruction and greenish toilet papers and printing at will?
Today there is another silly article in the main media saying that the pro unification Taiwanese are living in fear, an isolated minority.
ReplyDeleteJust read the Taiwan social media, thriving and growing, with a huge audience listening to many well versed and highly educated intellectuals, professors and ex generals. There are so many such networks, some being banned by the DPP but resurfaced from independent channel providers.
They are all patriotic Chinese rooting for China and for reunification. The DPP has been silencing the main media to give an impression that the majority of Taiwanese are for independence. Quite the contrary. Maybe in a couple of years, Taiwan would return to the Motherland voluntarily to share the rejuvenation of the Chinese Civilisation and to celebrate China as the biggest economy in the world.