Trump Destroys US Dollar Dominion

[georgephillip]

I've read these nutty articles about how the dollar was going to lose its hegemony for decades now, usually written by some crackpot with no understanding how the global monetary and payments system works. This crazy site is no different. They've been making the argument back when Bush was President, saying Bush was the reason why the dollar would stop being the reserve currency. Guess what? It didn't happen. And it's not going to happen under Trump, or the next President, or the next President, or the President after that.

The simple fact is that there is no alternative, not the euro, not the yuan, not gold, nothing.

What makes you think your understanding of the global monetary and payment system works exceeds Michael Hudson's?

https://michael-hudson.com/wp-content/uploads/2010/03/superimperialism.pdf (P. 6)

"Prof. Hudson began writing this book while serving as the balance-of-payments economist for the Chase Manhattan Bank and Arthur Anderson during 1964-69, and completed it while teaching international finance at The New School in New York. (He is now Distinguished Professor of Economics at the University of Missouri at Kansas City.)

"His book was quickly translated into Spanish, Japanese, Russian and Arabic, and a new and revised edition was republished in Japan earlier this year (2002) before being published in Britain by Pluto.

"This book was the first to explain how America has obliged other countries to finance its payments deficit, including its foreign military spending and its corporate buyouts of European and Asian companies.

"In effect, America has devised a new means to tax Europe and Asia via their central banks’ obligation to accept unlimited sums of dollars.

"The burden on Europe and Asia is not felt directly as a tax, however, but indirectly through their payments surpluses with the United States."

I've read these nutty articles about how the dollar was going to lose its hegemony for decades now, usually written by some crackpot with no understanding how the global monetary and payments system works

Oh, so the good professor has been writing the same garbage for decades now.

Guess what? 99.9% of the other monetary economists disagree with him.

But you keep believing the 0.1%. lol

Oh, so the good professor has been writing the same garbage for decades now.

Guess what? 99.9% of the other monetary economists disagree with him.

But you keep believing the 0.1%. lol

When has the US Imperial Dollar ever faced a pair of rivals to the SWIFT transfer system?

Trump’s Brilliant Strategy to Dismember U.S. Dollar Hegemony

"But now, cyber warfare has become a way of pulling out the connections of any economy.

"And the major cyber connections are financial money-transfer ones, headed by SWIFT, the acronym for the Society for Worldwide Interbank Financial Telecommunication, which is centered in Belgium.

"Russia and China have already moved to create a shadow bank-transfer system in case the United States unplugs them from SWIFT.

"But now, European countries have come to realize that threats by Bolton and Pompeo may lead to heavy fines and asset grabs if they seek to continue trading with Iran as called for in the treaties they have negotiated.

"On January 31 the dam broke with the announcement that Europe had created its own bypass payments system for use with Iran and other countries targeted by U.S. diplomats.

"Germany, France and even the U.S. poodle Britain joined to create INSTEX — Instrument in Support of Trade Exchanges.

"The promise is that this will be used only for 'humanitarian' aid to save Iran from a U.S.-sponsored Venezuela-type devastation.

"But in view of increasingly passionate U.S. opposition to the Nord Stream pipeline to carry Russian gas, this alternative bank clearing system will be ready and able to become operative if the United States tries to direct a sanctions attack on Europe."

 

[georgephillip]

What makes you think your understanding of the global monetary and payment system works exceeds Michael Hudson's?

Speaking for myself , i do not exceed the professors understanding , nor do i even come close....

But how much do I really need to know?

Hudson views all global conflict through the lense of economics , which once one removes all jingoist reference is easily revealed.

Add to this that every fiat system in human history failed juxtaposed to our monetary imperialism

Further fuel that w/debt insanity , rising nationaism

No, i don't think anyone needs be an ecomnomic guru to realize the juggernaut we're riding here

~S~

Hudson views all global conflict through the lense of economics , which once one removes all jingoist reference is easily revealed.

Hudson also make historical allegations most Americans would rather not believe:

https://michael-hudson.com/wp-content/uploads/2010/03/superimperialism.pdf

"Pluto Press Release 25 11 2002 How America will get Europe to finance its 2002-03 Oil War with Iraq..."

"This Treasury-bond standard of international finance has enabled the United States to obtain the largest free lunch ever achieved in history.

"America has turned the international financial system upside down. Whereas formerly it rested on gold, central bank reserves are now held in the form of U.S. Government IOUs that can be run up without limit.

"In effect, America has been buying up Europe, Asia and other regions with paper credit – U.S. Treasury IOUs that it has informed the world it has little intention of ever paying off.

" And there is little Europe or Asia can do about it, except to abandon the dollar and create their own financial system."

And Then Came Trump.

 

[georgephillip]

For decades the "deep states" of elite capitalist nations assumed the only threat to their continued economic pillage and plunder came from the political left.

And then came Trump.

"FEBRUARY 1, 2019
Trump’s Brilliant Strategy to Dismember U.S. Dollar Hegemony
by MICHAEL HUDSON

"The end of America’s unchallenged global economic dominance has arrived sooner than expected, thanks to the very same Neocons who gave the world the Iraq, Syria and the dirty wars in Latin America.

"Just as the Vietnam War drove the United States off gold by 1971, its violent regime change warfare against Venezuela and Syria – and threatening other countries with sanctions if they do not join this crusade – is driving European and other nations to create their alternative financial institutions..."

"The Neocons who Trump has appointed are accomplishing what seemed unthinkable not long ago: Driving China and Russia together – the great nightmare of Henry Kissinger and Zbigniew Brzezinski.

"They also are driving Germany and other European countries into the Eurasian orbit, the 'Heartland' nightmare of Halford Mackinder a century ago.

"The root cause is clear: After the crescendo of pretenses and deceptions over Iraq, Libya and Syria, along with our absolution of the lawless regime of Saudi Arabia, foreign political leaders are coming to recognize what world-wide public opinion polls reported even before the Iraq/Iran-Contra boys turned their attention to the world’s largest oil reserves in Venezuela: The United States is now the greatest threat to peace on the planet."

If you understood geopolitics, russia and china arent being driven together. That's what you're told to believe on the surface. Inserting the vietnam war as a precursor to the death of the dollar is another laugher. That was all started with the creation of the fed in 1912/13 under wilson. The next currency reset will be worldwide in digital form.

If you understood geopolitics, russia and china arent being driven together. That's what you're told to believe on the surface

Can you imagine a day when the US will be on the receiving end of economic sanctions?

Trump’s Economic Sanctions Have Cost Venezuela About $6bn Since August 2017


"Since gaining control over the global reserve currency, first through the Bretton Woods agreement and later through the introduction of the Petrodollar, the U.S. has often used the platform as an economic weapon to cut off nations they do not agree with from having access to dollars and to banking systems.

"However beginning in 2016, first in China and then later in Russia, the two largest banking and energy economies have themselves already implemented their own alternatives to SWIFT, and thus have lessened the effects economic sanctions have had on their countries.

"Should Europe be able to both use the Euro as a primary trade payment currency, and also implement their own SWIFT alternative, the power Washington has over most of the world's monetary systems will have evaporated to the point where one day they themselves could become the victim of economic isolation, and where the dollar simply disappears as the accepted reserve currency."

End of dollar hegemony ramping up as Germany's Foreign Minister calls for independent EU alternative to SWIFT ~ Shotgun Economics

 

[georgephillip]

The next currency reset will be worldwide in digital form.

According to the end of the OP article, this is already happening....~S~

FEBRUARY 1, 2019
"Trump’s Brilliant Strategy to Dismember U.S. Dollar Hegemony
by MICHAEL HUDSON..."

"The end of our monetary imperialism, about which I first wrote in 1972 in Super Imperialism, stuns even an informed observer like me.

"It took a colossal level of arrogance, short-sightedness and lawlessness to hasten its decline — something that only crazed Neocons like John Bolton, Elliott Abrams and Mike Pompeo could deliver for Donald Trump."

Three years ago, most of us could not have imagined a President Trump.

Three years from now, most of us will not have comprehended the economic changes he has delivered.

 

[sparky]

Can you imagine a day when the US will be on the receiving end of economic sanctions?

Exactly what many said when our GND exceeded our GNP.....~S~

 

[georgephillip]

Can you imagine a day when the US will be on the receiving end of economic sanctions?

Exactly what many said when our GND exceeded our GNP.....~S~

Public debt is a major threat to the US economy, but we have seen worse and survived:

National Debt – Just Facts

I don't know if anyone knows for sure what the immediate effects on US consumers would be if (when) the US dollar loses its world's reserve currency status. I suspect prices would rise substantially in a relatively brief period of time.

Europe Launches SWIFT Alternative To Send Money To Iran

"In a move sure to unleash fury from the Trump administration, the European Union has announced it has set up a transactions channel with Iran to bypass US sanctions.

"The launch of INSTEX — or 'Instrument in Support of Trade Exchanges' — by France, Germany, and the UK will allow non-dollar trade with Iran and is being described as facilitating humanitarian goods-related transactions only, including food, medicine and medical equipment."

If the US loses its ability to seize assets and impose unilateral sanctions on those who refuse to do its economic bidding, that might actually turn out to be a good thing.

 

[AntonToo]

Can you imagine a day when the US will be on the receiving end of economic sanctions?

Exactly what many said when our GND exceeded our GNP.....~S~

Public debt is a major threat to the US economy, but we have seen worse and survived:

Because we PAID THEM DOWN with big taxes and 5% annual GDP growth.

We now have more tax cuts than ever and can't break 3%

 

[Toro]

Blah blah blah.

I’ve been reading this nonsense for decades.

There are no other alternatives. Not euros - will it even exist in a decade? Not yen - Japan is in terminal decline and runs massive deficits. Not the yuan - China is a closed, command economy. Not gold - lol “gold.” Not SDRs - WTF are they?

No, nothing.

So suck eggs, America haters!

 

[Likkmee]

For decades the "deep states" of elite capitalist nations assumed the only threat to their continued economic pillage and plunder came from the political left.

And then came Trump.

"FEBRUARY 1, 2019
Trump’s Brilliant Strategy to Dismember U.S. Dollar Hegemony
by MICHAEL HUDSON

"The end of America’s unchallenged global economic dominance has arrived sooner than expected, thanks to the very same Neocons who gave the world the Iraq, Syria and the dirty wars in Latin America.

"Just as the Vietnam War drove the United States off gold by 1971, its violent regime change warfare against Venezuela and Syria – and threatening other countries with sanctions if they do not join this crusade – is driving European and other nations to create their alternative financial institutions..."

"The Neocons who Trump has appointed are accomplishing what seemed unthinkable not long ago: Driving China and Russia together – the great nightmare of Henry Kissinger and Zbigniew Brzezinski.

"They also are driving Germany and other European countries into the Eurasian orbit, the 'Heartland' nightmare of Halford Mackinder a century ago.

"The root cause is clear: After the crescendo of pretenses and deceptions over Iraq, Libya and Syria, along with our absolution of the lawless regime of Saudi Arabia, foreign political leaders are coming to recognize what world-wide public opinion polls reported even before the Iraq/Iran-Contra boys turned their attention to the world’s largest oil reserves in Venezuela: The United States is now the greatest threat to peace on the planet."

If you understood geopolitics, russia and china arent being driven together. That's what you're told to believe on the surface. Inserting the vietnam war as a precursor to the death of the dollar is another laugher. That was all started with the creation of the fed in 1912/13 under wilson. The next currency reset will be worldwide in digital form.

Digital currency makes no sense. For one, it requires electricity to access, for two, it can be manipulated remotely with a keyboard. No bueno.

I agree 100 percent. Digital currency is no good. It will be manipulated and used to control every aspect of one's existence.

If ya cant mow it or grow it, it aint worth a shiite.1,017 acres here with water. That works.

 

[Marion Morrison]

For decades the "deep states" of elite capitalist nations assumed the only threat to their continued economic pillage and plunder came from the political left.

And then came Trump.

"FEBRUARY 1, 2019
Trump’s Brilliant Strategy to Dismember U.S. Dollar Hegemony
by MICHAEL HUDSON

"The end of America’s unchallenged global economic dominance has arrived sooner than expected, thanks to the very same Neocons who gave the world the Iraq, Syria and the dirty wars in Latin America.

"Just as the Vietnam War drove the United States off gold by 1971, its violent regime change warfare against Venezuela and Syria – and threatening other countries with sanctions if they do not join this crusade – is driving European and other nations to create their alternative financial institutions..."

"The Neocons who Trump has appointed are accomplishing what seemed unthinkable not long ago: Driving China and Russia together – the great nightmare of Henry Kissinger and Zbigniew Brzezinski.

"They also are driving Germany and other European countries into the Eurasian orbit, the 'Heartland' nightmare of Halford Mackinder a century ago.

"The root cause is clear: After the crescendo of pretenses and deceptions over Iraq, Libya and Syria, along with our absolution of the lawless regime of Saudi Arabia, foreign political leaders are coming to recognize what world-wide public opinion polls reported even before the Iraq/Iran-Contra boys turned their attention to the world’s largest oil reserves in Venezuela: The United States is now the greatest threat to peace on the planet."

If you understood geopolitics, russia and china arent being driven together. That's what you're told to believe on the surface. Inserting the vietnam war as a precursor to the death of the dollar is another laugher. That was all started with the creation of the fed in 1912/13 under wilson. The next currency reset will be worldwide in digital form.

If you understood geopolitics, russia and china arent being driven together. That's what you're told to believe on the surface

Can you imagine a day when the US will be on the receiving end of economic sanctions?

Trump’s Economic Sanctions Have Cost Venezuela About $6bn Since August 2017


"Since gaining control over the global reserve currency, first through the Bretton Woods agreement and later through the introduction of the Petrodollar, the U.S. has often used the platform as an economic weapon to cut off nations they do not agree with from having access to dollars and to banking systems.

"However beginning in 2016, first in China and then later in Russia, the two largest banking and energy economies have themselves already implemented their own alternatives to SWIFT, and thus have lessened the effects economic sanctions have had on their countries.

"Should Europe be able to both use the Euro as a primary trade payment currency, and also implement their own SWIFT alternative, the power Washington has over most of the world's monetary systems will have evaporated to the point where one day they themselves could become the victim of economic isolation, and where the dollar simply disappears as the accepted reserve currency."

End of dollar hegemony ramping up as Germany's Foreign Minister calls for independent EU alternative to SWIFT ~ Shotgun Economics

We can make anything we need right here and tell the world to go fuck themselves. True story.

And then some!

 

[Tehon]

I've read these nutty articles about how the dollar was going to lose its hegemony for decades now, usually written by some crackpot with no understanding how the global monetary and payments system works. This crazy site is no different. They've been making the argument back when Bush was President, saying Bush was the reason why the dollar would stop being the reserve currency. Guess what? It didn't happen. And it's not going to happen under Trump, or the next President, or the next President, or the President after that.

The simple fact is that there is no alternative, not the euro, not the yuan, not gold, nothing.

Nice straw man.
I don't believe that the OP or the article linked in the OP gave rise to the premise that the dollar's role as reserve currency was challenged.

 

[Likkmee]

WW3. Problem over.......for a little while

 

[georgephillip]

Can you imagine a day when the US will be on the receiving end of economic sanctions?

Exactly what many said when our GND exceeded our GNP.....~S~

Public debt is a major threat to the US economy, but we have seen worse and survived:

Because we PAID THEM DOWN with big taxes and 5% annual GDP growth.

We now have more tax cuts than ever and can't break 3%

Because we PAID THEM DOWN with big taxes and 5% annual GDP growth.

We now have more tax cuts than ever and can't break 3%

After WWII when US GDP topped five percent the private sector faced no international competition. The industrial infrastructure of the US homeland was untouched by that conflict, and its economy was booming. Much has changed since 1945, and I don't think the private, for-profit sector is capable of responding today as it once did.

This Radical Plan to Fund the ‘Green New Deal’ Just Might Work

"This Radical Plan to Fund the ‘Green New Deal’ Just Might Work
A network of public banks could fund the Green New Deal in the same way President Franklin Roosevelt funded the original New Deal"

 

[Natural Citizen]

Blah blah blah.

I’ve been reading this nonsense for decades.

There are no other alternatives. Not euros - will it even exist in a decade? Not yen - Japan is in terminal decline and runs massive deficits. Not the yuan - China is a closed, command economy. Not gold - lol “gold.” Not SDRs - WTF are they?

No, nothing.

So suck eggs, America haters!

You're probably one of the very last people on this forum who should be talking about monetary policy. lol.

But, you know. Keynesians gonna Keynes. We get it.

 

[georgephillip]

WW3. Problem over.......for a little while

 

[easyt65]

For decades the "deep states" of elite capitalist nations assumed the only threat to their continued economic pillage and plunder came from the political left.

And then came Trump.

"FEBRUARY 1, 2019
Trump’s Brilliant Strategy to Dismember U.S. Dollar Hegemony
by MICHAEL HUDSON

"The end of America’s unchallenged global economic dominance has arrived sooner than expected, thanks to the very same Neocons who gave the world the Iraq, Syria and the dirty wars in Latin America.

"Just as the Vietnam War drove the United States off gold by 1971, its violent regime change warfare against Venezuela and Syria – and threatening other countries with sanctions if they do not join this crusade – is driving European and other nations to create their alternative financial institutions..."

"The Neocons who Trump has appointed are accomplishing what seemed unthinkable not long ago: Driving China and Russia together – the great nightmare of Henry Kissinger and Zbigniew Brzezinski.

"They also are driving Germany and other European countries into the Eurasian orbit, the 'Heartland' nightmare of Halford Mackinder a century ago.

"The root cause is clear: After the crescendo of pretenses and deceptions over Iraq, Libya and Syria, along with our absolution of the lawless regime of Saudi Arabia, foreign political leaders are coming to recognize what world-wide public opinion polls reported even before the Iraq/Iran-Contra boys turned their attention to the world’s largest oil reserves in Venezuela: The United States is now the greatest threat to peace on the planet."

"The Neocons who Trump has appointed are accomplishing what seemed unthinkable not long ago: Driving China and Russia together – the great nightmare of Henry Kissinger and Zbigniew Brzezinski."

Am I the ONLY one who caught this?

'What seemed UNTHINKABLE'?

1. Your quote above says Henry Kissinger THOUGHT of it decades ago.

2. I'm no Henry Kissinger, but with a little common sense and knowledge of history I also thought about Russia and China uniting....and I'm sure I am not the only one.

Once upon a time Nazi Germany and Japan, THE world's 'evil' super powers, teamed together to taken not just the United States but also the world.

The United States is the world's current unequaled super power for 'good' (or it used to be before we started helping terrorists take over the govt of sailed nations, helping terrorists who slaughtered 3,000 Americans kill other nation's rulers and take over their countries, and invading sovereign nations).

We are the reason the USSR collapsed and split apart, the one massive regret Putin voiced he had and wants to change. China wants to rule the world. The US stands in the way.

What makes more eventual sense than those 2 getting together one day?

UNTHINKABLE?

Seriously? No one else even THOUGHT this could happen?

 

[Toro]

Nice straw man.
I don't believe that the OP or the article linked in the OP gave rise to the premise that the dollar's role as reserve currency was challenged.

That's exactly what the OP's article is doing. That's what "dollar hegemony" means.

It's just another regurgitation of old, leftist, anti-American claptrap that has been around for decades.

 

[Toro]

You're probably one of the very last people on this forum who should be talking about monetary policy. lol.

But, you know. Keynesians gonna Keynes. We get it.

Oh, apart from my Honours degree in economics, anti-vaxxer, I have all sorts of libertarian economics books on my shelf from von Mises, to Hayek, to Hazlitt, etc., etc. I used to be an Ayn Rand Objectivist. But then, I graduated high school and started being a thinking human being about the world around me, not some knee-jerk, juvenile, conspiracy-swilling, book-dwelling "libertarian" who believes that the government is wrong when it says the sun rises in the east every morning.

 

[Tehon]

Nice straw man.
I don't believe that the OP or the article linked in the OP gave rise to the premise that the dollar's role as reserve currency was challenged.

That's exactly what the OP's article is doing. That's what "dollar hegemony" means.

It's just another regurgitation of old, leftist, anti-American claptrap that has been around for decades.

Clearly it isn't.

The article is talking about the end of the weaponized dollar. You should probably read it.

 

[Natural Citizen]

Oh, apart from my Honours degree in economics, anti-vaxxer, I have all sorts of libertarian economics books on my shelf from von Mises, to Hayek, to Hazlitt, etc., etc. I used to be an Ayn Rand Objectivist. But then, I graduated high school and started being a thinking human being about the world around me, not some knee-jerk, juvenile, conspiracy-swilling, book-dwelling "libertarian" who believes that the government is wrong when it says the sun rises in the east every morning.

You triggered?