All this suggests is that the shift in international currency strength after the Ukraine war will not into some West-East bloc, as most argue, but instead towards a fragmentation of currency reserves; to quote the IMF: “if dollar dominance comes to an end (a scenario, not a prediction), then the greenback could be felled not by the dollar’s main rivals but by a broad group of alternative currencies”. That may have even worse consequences for world peace and for the smooth expansion of the world capitalist economy than a major split between west and east. Indeed, it implies almost an anarchic currency situation where the imperialist economies, particularly the US, could lose control over world currency markets.While the USD is still dominant and there is no rival on the immediate horizon, dollar dominance is ending in a somewhat surprising way that Michael Roberts views as detrimental to world trade.
The advantage of empire for the world system is stable and efficient trade based on a dominant payments system and a rules-based order established by the empire. While the empire profits most, everyone does better in a sort of trickle down arrangement. As the American empire loses power, that advantage for the current capitalistic world system is threatened, and this portends to affect poorer nations more negatively than wealthier ones.
Worth a read.
https://thenextrecession.wordpress.com/2022/03/30/the-end-of-dollar-dominance/
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