Newspaper from ChinaThe US Dollar $ | Tweet
Published in Bulgaria 
- Financial analysis - 2 - 16 Aug 19 10:07
For Washington, the U.S. dollar is leverage, a financial weapon to dominate the world economy, to impose its foreign policy agendas and to secure a steady flow of natural resources over sovereign countries who use the currency.
In the last decade or so, the reputation of the U.S. dollar has been widely discredited because it is viewed by many governments around the world as a risky asset since the U.S. economy holds more than $21 trillion in debt and if you add the unfunded liabilities in the form of promises to ensure payments to retirees associated with government pensions, entitlement programs and social security amounts to more than $200 trillion. The dollar is a fiat currency based on “faith†which is issued by the Treasury department and backed by the full weight of U.S. government, but countries who are routinely threatened by Washington with economic sanctions have lost faith in the dollar. The dollar is a debt instrument issued to the public with no real objective measure of the dollar’s true value. Since the Federal Reserve Bank was founded in 1913, the dollar has lost over 97% of its value. In 2018, rt.comreported that:
“the Russian president noted that there are risks in settlements in national currencies, but they could be minimized. “Risks exist everywhere and they need to be minimized, and in order to minimize them diversification is required.â€Â Holding dollars is risky “According to Putin, the US dollar is also a risky financial tool. “US foreign debt amounts to $20 trillion. What will be next? Who knows?â€The U.S. will never be able to finance their debt even if they brought back their manufacturing base, reduce government spending and end all of their wars including those in Iraq and Afghanistan. Peter Schiff of Euro Pacific Capital recently told Rick Sanchez of RT News that
“All the signs are already there. Look at what’s happening out there. The stock market is falling, Look at homebuilders, the housing stocks, the financials, the retailers – all these are the same things that were happening in 2007 leading to that crisis,â€Â Schiff warned. “So, what you’ve got to do is get out of U.S. dollar assets. The dollar is going to be the biggest casualty along with the American standard of living.â€The U.S. and their allies including Saudi Arabia, Israel, NATO, Colombia and until recently Brazil under the new Presidency of the ultra-right wing fascist, Jair Balsonaro are preparing for a major war with Russia, China, Iran, Syria, Lebanon, Venezuela, Nicaragua and Cuba to basically regain control over the world by restoring the U.S. dollar to its global dominance it once had. The National Interest, an international affairs magazine founded by neoconservative thinker Irving Kristol and whose honorary chairman is one of the world’s most notorious war criminals, Henry Kissinger published an article written by Christopher Smart titled ‘The Future of the Dollar-And It’s Role in Financial Diplomacy’ on the role the dollar plays in what they call “financial diplomacyâ€:
The U.S. has essentially used its currency status, or what Christopher Smart described as the dollar having “a privileged roleâ€Â of negotiating financial deals with the upper-hand when it comes to specific issues including debt restructuring or “targeted financial sanctionsâ€Â with leverage (or in simple terms, a gun to your head!), and for all of those reasons that is why several countries had made significant moves away from the dollar. That is why the dollar has also been losing its position as the world’s reserve currency, so a war will be the only option they have to keep it intact. The dollar became the reserve currency of the world since 1971 when the Nixon administration abandoned the Bretton-Woods gold standard, then the federal reserve went into mass printing mode where dollars where created without nothing to back it. One other reason that the dollar became a reserve currency for the world is what we call the Petrodollar as a mechanism to control the oil markets when Washington made a deal with Saudi Arabia to standardize oil prices in dollars creating the “petrodollar system†which meant that oil exporting countries needed to use dollars in exchange for their oil imports, therefore making it essential for all oil-exporting countries to use dollars. So national incomes became dependent on the dollar’s value, so when the dollar falls in value, so did their economy. U.S. trade partners must peg their currencies to the dollar, so if the value of the dollar falls, so does the price of their domestic goods and services fall.
Not only the U.S. made the dollar the dominant currency in the world for natural resources in terms of oil, it uses its currency status as a weapon against sovereign nations who dared to challenge U.S. hegemony. Several countries in the last decade, especially Russia, China, India, Pakistan, Turkey, Venezuela and Iran have been slowly abandoning the U.S. dollar since they have been repeatedly sanctioned by Washington for not following Western standards of compliance within the world order.
Despite Trump calling for the withdrawal of U.S. troops from Syria and Afghanistan, it does not change the fact that the Military-Industrial Complex is planning the next major war to protect the dollar as it is losing its world reserve status, perhaps we can call it The Dollar War. Iraq’s Saddam Hussein decided to sell oil in Euros bypassing the dollar and Libya’s Muammar Gaddafi had planned on Africa using a gold-backed currency in dinars instead of the dollar. Soon after, a no-fly zone was imposed in both Iraq and Libya leading to a war which devastated both countries. Muammar Gaddafi also called for African nations to dump the dollar at a time when China’s growing economic ties with several African countries became a threat to Washington. Saddam Hussein and Muammar Gaddafi were eventually captured by U.S. and NATO backed forces and terrorist groups and executed.
As the World Moves From the U.S. Dollar, Chance of a Major War Increases
On August 6th, 2018, former Iranian President Mahmoud Ahmadinejad tweeted
“The use of the US Dollar as the standard unit of currency in global markets and the world banking system is the key strength of the American Empire. Things need to change, current orders should be reordered. #Newworldorder #DollarDictatorship.â€Things do need to change. Russia, China and Iran are making moves to change the current system without the dollar. The mainstream- media is taking notes on the reality as Newsweek magazine published an interesting article last September titled ‘Russia and China Think U.S. Dollars are Ruining the World, So They’re Finding A New Way’ The title in itself speaks volumes.
“Russia and China lashed out at U.S.’s control over the global financial system after being hit by fresh sanctions that have left the two rising powers increasingly frustrated.â€The article continued:
“Russian Foreign Minister Sergey Lavrov said Friday that his country was making extensive efforts to distance itself entirely from the U.S.-dominated international financial system, much of which runs on the U.S. dollar, and urged others to do the same. Washington has taken advantage of its unmatched influence by enacting sanctions as a form of punishment against countries accused of wrongdoing, or to persuade them to alter policies that are unfavorable to the United Statesâ€Countries around the world continue stocking up on Gold as they prepare to ditch the dollar as a result of the imposed financial sanctions by Washington.
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