by Peter Koenig
What if tomorrow nobody but the United States would use the US-dollar?
Every country, or society would use their own currency for internal and international trade, their own economy-based, non-fiat currency. It could be traditional currencies or new government controlled crypto-currencies, but a country's own sovereign money. No longer the US-dollar.
No longer the dollar's foster child, the Euro.
No longer international monetary transactions controlled by US banks and - by the US-dollar controlled international transfer system, SWIFT, the system that allows and facilitates US financial and economic sanctions of all kinds - confiscation of foreign funds, stopping trades between countries, blackmailing 'unwilling' nations into submission.
What would happen...?
Well, the short answer is that,
We are not there yet...
But graffities are all over the walls signaling that we are moving quite rapidly in that direction.
And Trump knows it and his handlers know it - which is why the onslaught of financial crime,
...all in the name of "Make America Great Again", is accelerating exponentially and with impunity.
What is surprising is that the Anglo-Saxon hegemons do not seem to understand that all the threats, sanctions, trade barriers, are provoking the contrary to what should contribute to American 'Greatness'...
Economic sanctions, in
whatever form, are effective only as long as the world uses the US
dollar for trading and as reserve currency.
Meaning trading with each
other in their own currencies - and that outside of the US banking
system which so far even controls trading in local currencies, as
long as funds have to be transferred from one nation to another
The US-dollar, a fiat currency, by its sheer money mass, may bend national economies up or down, depending in which direction the country is favored by the hegemon.
Let's put the absurdity of this phenomenon in perspective.
A derivative is,
This monstrous debt is partly owned in the form of treasury bonds as foreign exchange reserves by countries around the world.
The bulk of it is owed by the US to itself - with no plans to ever "pay it back" - but rather create more money, more debt, with which to pay for the,
This amounts to a humongous worldwide dollar-based pyramid system.
Imagine, this debt comes crashing down, for example because one or several big (Wall Street) banks are on the brink of bankruptcy, so, they claim their outstanding derivatives, paper gold (another banking absurdity) and other debt from smaller banks.
It would generate a chain
reaction that might bring down the whole dollar-dependent world
economy. It would create an exponential "Lehman
Brothers 2008" on global scale.
It's not easy with all the dollar-denominated reserves and assets invested abroad, all over the globe.
A solution may be gradually divesting them (US-dollar liquidity and investments) and moving into non-dollar dependent currencies, like,
Beware of the Euro, it's the
foster child of the US-dollar...!
India is already an active member of the Shanghai Cooperation Organization (SCO), an association of countries that are developing peaceful strategies for trade, monetary security and defense, comprising,
As such, SCO accounts for,
The east has no need for the west to survive.
No wonder that western
media hardly mention the SCO which means that the western average
public at large has no clue what the SCO stands for, and
who are its members.
Any country is welcome to
join this new alliance of countries and new but fast-growing
approach to alternative trading - and to finding back to national
political and financial sovereignty.
At this point, it might be appropriate to mention Facebook's attempt to introduce a globe-spanning cryptocurrency,
Little is known on how exactly it will (or may) function, except that it would cater to billions of facebook members around the world.
According to Facebook, there are 2.38 billion active members. Imagine, if only two thirds - about 1.6 billion - opened a Libra account with Facebook, the floodgate of libras around the world would be open.
Libra is or would be a privately-owned cryptocurrency - and, coming from Facebook - could be destined to replace the dollar by the same people who are now abusing the world with the US-dollar.
It may be projected as the antidote to government-controlled cryptocurrencies, thus, circumventing the impact of dedollarization.
Beware of the Libra...!
Despite US and EU sanctions,
In the long-run, the benefits of German-Russian business and economic relations will far outweigh the illegal US sanctions.
Once this awareness has
sunk in, there is nothing to stop Russian-German business
associations to flourish, and to attract other EU-Russian business
relations - all outside of the dollar-dominated banking and transfer
This will not only circumvent punishing tariffs on China's exports (and make US customers of Chinese goods furious, as their Chinese merchandise is no longer available at affordable prices, or no longer available at all), but this strategy will also enhance the Chinese Yuan on international markets and boost the Yuan even further as a reliable reserve currency - ever outranking the US-dollar.
In fact, in the last 20 years, dollar-denominated assets in international reserve coffers have declined from more than 90% to below 60% and will rapidly decline further as Washington's coercive financial policies prevail.
Dollar reserves are
rapidly replaced by reserves in Yuan and gold, and that even in
such staunch supporters of the west as is Australia.
As a result, the US is
sabotaging the Turkish currency, the Lira which has lost 40%
since January 2018.
This amounts to a double loss for the US...
Turkey will most likely abandon all trading in US dollars and align her currency with, for example, the Chinese Yuan and the Russian ruble, and, to the detriment of the Atlantic alliance, Turkey may very likely exit NATO.
Abandoning NATO will be a
major disaster for the US, as Turkey is both strategically, as well
as in terms of NATO military power one of the strongest - if not the
strongest - nation of the 29 NATO members, outside of the US.
Other countries, long wary of NATO and of storing NATO's nuclear weapons on their soils, especially Italy and Germany, may also consider exiting NATO.
In both Germany and
Italy, a majority of the people is against NATO and especially
against the Pentagon waging wars form their NATO bases in their
territories in Germany in Italy.
This may change, once people stand up,
...and claim their
democratic rights as citizens of their nation states.
However, this one may be all-destructive nuclear - and nobody knows or is able to predict the damage and destruction of such a catastrophe, nor the time of recovery of Mother Earth from an atomic calamity.
However, the hardest blow for Washington will be when Turkey exits NATO.
Such a move will come sooner or later, notwithstanding Ms. Von der Leyen's battle cries for NATO. The breaking up of NATO will annihilate the western power structure in Europe and throughout the world, where the US still maintains more than 800 military bases.
On the other hand, the disbanding of NATO will increase the world's security, especially in Europe - for all the consequences such an exit will bear.
Finally, investments of the Chinese Belt and Road Initiative (BRI), also called the New Silk Road, will be mostly made in Yuan and local currencies of the countries involved and incorporated in one or more of the several BRI land and maritime routes that eventually will span the globe.
investments may serve the
People's Bank of China, China's
Central Bank, as a dollar-divesting tool of China's huge dollar
reserves which currently stands at close to two trillion dollars.