Difference between revisions of "De-dollarization"
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'''De-dollarization''' is the process of freeing countries from use of the [[dollar]] to denominate the values of goods and services exchanged. The use of the dollar means that all of the transactions pass through the [[American]] banking system, which means that the [[United States]] has a [[monopoly]] information flow of who is selling what to whom. This American domination and an exclusive [[commercial]] advantage is removed when [[trade]] is conducted in national currencies and do not go through the United States banking system. De-dollarization is a consequence of American abuse of the power of the dollar as the global reserve currency. It is the abuse of the global financial system by spendthrift [[Congress]]es and the [[Federal Reserve Board]] printing excess dollars and offering nothing of real value in terms of manufactured goods or services to back it up, thus robbing the rest of the planet. | '''De-dollarization''' is the process of freeing countries from use of the [[dollar]] to denominate the values of goods and services exchanged. The use of the dollar means that all of the transactions pass through the [[American]] banking system, which means that the [[United States]] has a [[monopoly]] information flow of who is selling what to whom. This American domination and an exclusive [[commercial]] advantage is removed when [[trade]] is conducted in national currencies and do not go through the United States banking system. De-dollarization is a consequence of American abuse of the power of the dollar as the global reserve currency. It is the abuse of the global financial system by spendthrift [[Congress]]es and the [[Federal Reserve Board]] printing excess dollars and offering nothing of real value in terms of manufactured goods or services to back it up, thus robbing the rest of the planet. | ||
| − | The [[BRICS]] group, led by [[Russia]] and [[China]] began building an international finance and trading system that does not rely on dollars, that uses countries’ local currencies, [[gold]], [[oil]], or other [[asset]]s to trade. The U.S. abuse of economic sanctions to [[blackmail]] and punish other countries that did not bend to America's will added to the impetus. The rise of BRICS means that the US dollar will, at a minimum, lose its relative monopoly on oil and [[gas]] trades and sales. | + | The [[BRICS]] group, led by [[Russia]] and [[China]] began building an international finance and trading system that does not rely on dollars, that uses countries’ local currencies, [[gold]], [[oil]], or other [[asset]]s to trade.{{fact}} The U.S. abuse of economic sanctions to [[blackmail]] and punish other countries that did not bend to America's will added to the impetus.{{fact}} The rise of BRICS means that the US dollar will, at a minimum,{{fact}} lose its relative monopoly on oil and [[gas]] trades and sales. {{fact}} |
| − | If the world favors a second, gold-based settlement system and opts out of the [[fiat money]] dollar, which is no longer backed by something of exchangeable value, this could lead to the end not only of dollar settlement, but also of the dollar imperium. The US has so far been able to pay for its foreign trade with its freshly printed money that does not represent any increased production of goods and services at all, to the benefit of its own prosperity in exchange for “fiat money”. If this were no longer possible, if the countries of the world no longer accepted worthless dollars, the [[USA]] would no longer be able to buy all the world's goods with them, to pay for $900 billion in [[military industrial complex]] expenditures and to cover its financial [[deficit]]s. Dollar dominance will inevitably fade and the dollar decline as the world's top reserve currency, though it will undoubtedly continue to survive in that capacity in parts of the world where the US continues to have considerable political and economic leverage, like [[Latin America]]. In this respect, the financial boycott against Russia and a counter-reaction by the world could result in the collapse of the dollar empire. | + | If the world favors a second, gold-based settlement system and opts out of the [[fiat money]] dollar, which is no longer backed by something of exchangeable value, this could lead to the end not only of dollar settlement, but also of the dollar imperium.{{fact}} The US has so far been able to pay for its foreign trade with its freshly printed money that does not represent any increased production of goods and services at all, to the benefit of its own prosperity (see: [[America First]]) in exchange for “fiat money”.{{fact}} If this were no longer possible, if the countries of the world no longer accepted worthless dollars, the [[USA]] would no longer be able to buy all the world's goods with them, to pay for $900 billion in [[military industrial complex]] expenditures and to cover its financial [[deficit]]s.{{fact}} Dollar dominance will inevitably fade and the dollar decline as the world's top reserve currency, though it will undoubtedly continue to survive in that capacity in parts of the world where the US continues to have considerable political and economic leverage, like [[Latin America]].{{fact}} In this respect, the financial boycott against Russia and a counter-reaction by the world could result in the collapse of the dollar empire.{{fact}} |
[[Elon Musk]] explained the process of de-dollarization succinctly: "The United States has overplayed its hand in weaponizing the dollar with sanctions...You're now seeing a lot of countries de-dollar their transactions because we’ve forced it...And this goes beyond even Russia, China, and Iran...Countries like Brazil or India still want to transact with Russia...They can’t do it with dollars, so we've forced them to de-dollarize their transactions, thus weakening the strength of the dollar in the world."<ref>[https://www.realclearpolitics.com/video/2023/10/25/elon_musk_the_risk_of_world_war_three_is_increasing_rapidly.html Elon Musk: "We Are Sleepwalking Our Way Into World War Three," "Putting Civilization Itself At Risk"], Posted By Tim Hains, October 25, 2023. www.realclearpolitics.com</ref> | [[Elon Musk]] explained the process of de-dollarization succinctly: "The United States has overplayed its hand in weaponizing the dollar with sanctions...You're now seeing a lot of countries de-dollar their transactions because we’ve forced it...And this goes beyond even Russia, China, and Iran...Countries like Brazil or India still want to transact with Russia...They can’t do it with dollars, so we've forced them to de-dollarize their transactions, thus weakening the strength of the dollar in the world."<ref>[https://www.realclearpolitics.com/video/2023/10/25/elon_musk_the_risk_of_world_war_three_is_increasing_rapidly.html Elon Musk: "We Are Sleepwalking Our Way Into World War Three," "Putting Civilization Itself At Risk"], Posted By Tim Hains, October 25, 2023. www.realclearpolitics.com</ref> | ||
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==Sanctions regime and the SWIFT network== | ==Sanctions regime and the SWIFT network== | ||
| − | The [[SWIFT]] network is a [[Brussels]]-based global clearing office for communications between 12,000 [[bank]]s worldwide in which they advise one another about incoming transfers. It is an essential building block in international trade, and was abused by the United States, who pressured the independent managers of SWIFT to conform to [[economic sanctions]] imposed on certain countries not abiding by the so-called "[[rules based order]]" dictated by the [[U.S. State Department]] from [[Washington, D.C.]]. The "rules based order", also known as the [[Liberal world order]], by-passes the historically recognized framework of the [[United Nations]] under [[international law]] as having sole authority to impose [[multilateral]] economic sanctions. | + | The [[SWIFT]] network is a [[Brussels]]-based global clearing office for communications between 12,000 [[bank]]s worldwide in which they advise one another about incoming transfers.{{fact}} It is an essential building block in international trade, and was abused by the United States, who pressured the independent managers of SWIFT to conform to [[economic sanctions]] imposed on certain countries not abiding by the so-called "[[rules based order]]" dictated by the [[U.S. State Department]] from [[Washington, D.C.]].{{fact}} The "rules based order", also known as the [[Liberal world order]], by-passes the historically recognized framework of the [[United Nations]] under [[international law]] as having sole authority to impose [[multilateral]] economic sanctions.{{fact}} |
| − | The [[United States]] under the [[Biden regime]] moved to ''de facto'' [[steal]] USD $300 billion held in foreign banks that belongs to [[Russia]] via a scheme ostensibly meant to fund [[Ukraine aid]]. Acts like these is what essentially drives the BRICS nations to pursue a new settlement and payment infrastructure that would bypass use of [[US dollars]] (USD) or [[euro]], thus protecting the system's users from the United States and [[European Union]] using their currencies to [[blackmail]] other countries into compliance with [[the West]]'s wishes. For example, the United States routinely employs or threatens [[economic sanctions]] against countries if they do not de-criminalize [[homosexuality]] or legalize [[gay marriage]], alleging those countries to be "[[human rights]] violators". Even a change of administration in the United States cannot repair the loss of confidence and broken trust in the global financial system or assure such "[[rules based order]]" tactics would not occur again in the future to any party or nation participating in the [[SWIFT]] network. | + | The [[United States]] under the [[Biden regime]] moved to ''de facto'' [[steal]] USD $300 billion held in foreign banks that belongs to [[Russia]] via a scheme ostensibly meant to fund [[Ukraine aid]].{{fact}} Acts like these is what essentially drives the BRICS nations to pursue a new settlement and payment infrastructure that would bypass use of [[US dollars]] (USD) or [[euro]], thus protecting the system's users from the United States and [[European Union]] using their currencies to [[blackmail]] other countries into compliance with [[the West]]'s wishes.{{fact}} For example, the United States routinely employs or threatens [[economic sanctions]] against countries if they do not de-criminalize [[homosexuality]] or legalize [[gay marriage]], alleging those countries to be "[[human rights]] violators".{{fact}} Even a change of administration in the United States cannot repair the loss of confidence and broken trust in the global financial system or assure such "[[rules based order]]" tactics would not occur again in the future to any party or nation participating in the [[SWIFT]] network.{{fact}} |
==References== | ==References== | ||
Revision as of 05:18, October 26, 2024
De-dollarization is the process of freeing countries from use of the dollar to denominate the values of goods and services exchanged. The use of the dollar means that all of the transactions pass through the American banking system, which means that the United States has a monopoly information flow of who is selling what to whom. This American domination and an exclusive commercial advantage is removed when trade is conducted in national currencies and do not go through the United States banking system. De-dollarization is a consequence of American abuse of the power of the dollar as the global reserve currency. It is the abuse of the global financial system by spendthrift Congresses and the Federal Reserve Board printing excess dollars and offering nothing of real value in terms of manufactured goods or services to back it up, thus robbing the rest of the planet.
The BRICS group, led by Russia and China began building an international finance and trading system that does not rely on dollars, that uses countries’ local currencies, gold, oil, or other assets to trade.[Citation Needed] The U.S. abuse of economic sanctions to blackmail and punish other countries that did not bend to America's will added to the impetus.[Citation Needed] The rise of BRICS means that the US dollar will, at a minimum,[Citation Needed] lose its relative monopoly on oil and gas trades and sales.[Citation Needed]
If the world favors a second, gold-based settlement system and opts out of the fiat money dollar, which is no longer backed by something of exchangeable value, this could lead to the end not only of dollar settlement, but also of the dollar imperium.[Citation Needed] The US has so far been able to pay for its foreign trade with its freshly printed money that does not represent any increased production of goods and services at all, to the benefit of its own prosperity (see: America First) in exchange for “fiat money”.[Citation Needed] If this were no longer possible, if the countries of the world no longer accepted worthless dollars, the USA would no longer be able to buy all the world's goods with them, to pay for $900 billion in military industrial complex expenditures and to cover its financial deficits.[Citation Needed] Dollar dominance will inevitably fade and the dollar decline as the world's top reserve currency, though it will undoubtedly continue to survive in that capacity in parts of the world where the US continues to have considerable political and economic leverage, like Latin America.[Citation Needed] In this respect, the financial boycott against Russia and a counter-reaction by the world could result in the collapse of the dollar empire.[Citation Needed]
Elon Musk explained the process of de-dollarization succinctly: "The United States has overplayed its hand in weaponizing the dollar with sanctions...You're now seeing a lot of countries de-dollar their transactions because we’ve forced it...And this goes beyond even Russia, China, and Iran...Countries like Brazil or India still want to transact with Russia...They can’t do it with dollars, so we've forced them to de-dollarize their transactions, thus weakening the strength of the dollar in the world."[1]
Russian State Duma Chairman Vyacheslav Volodin observed on June 14, 2024, "The dollar has become toxic...Washington has totally undermined trust in the dollar as a global reserve currency by imposing illegal sanctions against our country’s financial institutions."[2]
Sanctions regime and the SWIFT network
The SWIFT network is a Brussels-based global clearing office for communications between 12,000 banks worldwide in which they advise one another about incoming transfers.[Citation Needed] It is an essential building block in international trade, and was abused by the United States, who pressured the independent managers of SWIFT to conform to economic sanctions imposed on certain countries not abiding by the so-called "rules based order" dictated by the U.S. State Department from Washington, D.C..[Citation Needed] The "rules based order", also known as the Liberal world order, by-passes the historically recognized framework of the United Nations under international law as having sole authority to impose multilateral economic sanctions.[Citation Needed]
The United States under the Biden regime moved to de facto steal USD $300 billion held in foreign banks that belongs to Russia via a scheme ostensibly meant to fund Ukraine aid.[Citation Needed] Acts like these is what essentially drives the BRICS nations to pursue a new settlement and payment infrastructure that would bypass use of US dollars (USD) or euro, thus protecting the system's users from the United States and European Union using their currencies to blackmail other countries into compliance with the West's wishes.[Citation Needed] For example, the United States routinely employs or threatens economic sanctions against countries if they do not de-criminalize homosexuality or legalize gay marriage, alleging those countries to be "human rights violators".[Citation Needed] Even a change of administration in the United States cannot repair the loss of confidence and broken trust in the global financial system or assure such "rules based order" tactics would not occur again in the future to any party or nation participating in the SWIFT network.[Citation Needed]
References
- ↑ Elon Musk: "We Are Sleepwalking Our Way Into World War Three," "Putting Civilization Itself At Risk", Posted By Tim Hains, October 25, 2023. www.realclearpolitics.com
- ↑ Vyacheslav Volodin: USD became toxic, June 14, 2024. duma.gov.ru
