It is clear that once dominance of the US Dollar and the system which sustains it is removed, consequences for the United States could be catastrophic. The question is NOT about IF US Dollar will survive as world's reserve currency--this is not even up for a debate--it is WHEN and HOW the departure will happen.Reminiscence of the Future
About US Dollar and Sanctions, Yet Again.
Andrei Martyanov
4 comments:
“It is clear that once dominance of the US Dollar and the system which sustains it is removed, consequences for the United States could be catastrophic.”
Not could be, will be. The USA has by far the world’s biggest trade deficit, but this is not a problem as long as the US government can create infinite dollars out of thin air, and those dollars are negotiable worldwide. The USA is essentially a parasite on the planet, trading dollars for goods and services.
The US trade deficit means the USA is vitally dependent on foreign nations. When the US dollar ceases to be globally negotiable, the USA as we know it will end. The USA will break into six or seven smaller nations, each desperately scrambling to achieve some degree of self-sufficiency.
The UK has the largest trade deficit in Europe, but the UK government can create infinite pounds sterling out of thin air, which are are widely negotiable. There was no way the UK could have adopted the euro, because the UK would have instantly become worse than Greece and France combined. The UK would have been destroyed like Greece and France, but overnight.
In the meantime, US sanctions are killing US dollar hegemony. The more arrogant the USA becomes, the more the USA is forcing other nations to use currencies other than US dollars.
At present the English language blogs and magazines boast that the US dollar continues to be more widely used than any other currency by far. This is typical Anglo-American bullshit and braggadocio. Typical denial and delusion. It’s like claiming that the US economy is still the world’s largest. (China’s is bigger in terms of real economies, as opposed to financial economies.) It’s like claiming that the USA has the world’s most powerful military, when it is only used to bomb wedding parties and funeral processions.
I predict that instead of a gradual slide into oblivion, the USA will go the way of the USSR. A tipping point will be reached, upon which the USA will be powerless to stop its rapid extinction, since parasitical banks will be unable and unwilling to stop their blood-sucking.
As the ship sinks faster and faster, right-wingers will continue to blame everything on “socialism,” while liberals will continue to blame everything on “white male privilege.”
One bright spot in all this is that the end of the USA will mean the end of Israel.
If the international DEMAND for the US dollar should fall, there remains the fact that the DOMESTIC DEMAND for the US dollar is artificially suppressed in that only depository institutions, aka "the banks", may use the US dollar in convenient, inherently risk-free account form at the Central Bank and because of other explicit and implicit privileges for private bank deposits.
So a fall in international DEMAND for the US dollar could be a very good thing for genuine bank reform in the US by forcing us to quit privileging the banks and other depository institutions.
A fall IN international DEMAND for the US dollar would be THE end OF the USA as WE know IT.
Mindless blather ABOUT banks (with random CAPITALIZATION) would BE irrelevant TO this.
would be THE end OF the USA as WE know IT. konrad
that was my point; an end to of, by and for "the banks".
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