USD is based on the extraordinary privilege of global hegemony. That privilege has an expiry date coming up soon.
Meanwhile other countries are starting to trade with their own currencies, which are based off the production within their own borders. They’re dedollarizing and they’re creating new international norms based on the principle of respectful cooperation and mutual benefit.
It’s very clear which model is more stable and sustainable.
It’s hard to say for certain as these things are in constant development and refinement, but the broad themes are clear. It’ll likely be a combination of bilateral currency swap deals, as was common practice pre-WWII, and multilateral institutions governing currency baskets or supranational units of account, similar to Keynes’ proposed Bancor, and thus keeping international balance of payments within healthy and sustainable parameters.
The bilateral agreements are already starting as the US is no longer able to militarily or economically threaten anyone who doesn’t use USD as their international unit of account. The second will take more time, but institutions like the BRICS bank and the Shanghai Cooperation Agreement are working in that direction. These institutions are based on cooperation and mutual benefit of all parties involved, in stark contrast to the US and its Bretton Woods institutions which make sure the US always wins.
All this tells me is that you haven’t understood anything I’ve written here. Neither is this about which currency I use to buy groceries or which one you use to buy gas. This is about how international transactions between different countries and different national currencies are settled.
I never said currency will be replaced with some undefined non-monetary thing. I said that one currency (USD) will be replaced with many on the international stage. In fact it’s already happening.
There is, believe it or not, a vast array of possibility between a single hegemonic currency linked to a single global hegemon and no currency at all. How do you think international trade worked for a couple centuries before the US organized its dollar to be the world reserve currency?
I agree that dedollarization will change our economic and political paradigms. I agree that a lot of the ways in which we think about these things today will be irrelevant in the dedollarized future.
If you’re interested in how we got to where we are today, I recommend Michael Hudson’s work.
USD is based on the extraordinary privilege of global hegemony. That privilege has an expiry date coming up soon.
Meanwhile other countries are starting to trade with their own currencies, which are based off the production within their own borders. They’re dedollarizing and they’re creating new international norms based on the principle of respectful cooperation and mutual benefit.
It’s very clear which model is more stable and sustainable.
brics coming up to challenge the almighty dollar
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what is it then
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Yes thats why BRICS exists. To stop having to rely on the west (under their shitty terms), breaking up the hegemony of the dollar in the process.
Also it is a long-term project, we won’t be seeing a miracle overnight.
More than just about petrol, too.
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Why do you assume that the USD must be replaced with an equally hegemonic and extraordinarily privileged currency?
Why do you believe what the US government and US billionaires tell you to think about foreign countries?
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It’s hard to say for certain as these things are in constant development and refinement, but the broad themes are clear. It’ll likely be a combination of bilateral currency swap deals, as was common practice pre-WWII, and multilateral institutions governing currency baskets or supranational units of account, similar to Keynes’ proposed Bancor, and thus keeping international balance of payments within healthy and sustainable parameters.
The bilateral agreements are already starting as the US is no longer able to militarily or economically threaten anyone who doesn’t use USD as their international unit of account. The second will take more time, but institutions like the BRICS bank and the Shanghai Cooperation Agreement are working in that direction. These institutions are based on cooperation and mutual benefit of all parties involved, in stark contrast to the US and its Bretton Woods institutions which make sure the US always wins.
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I asked before and I’ll ask again. Why do you assume the USD must be replaced by something exactly like it?
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All this tells me is that you haven’t understood anything I’ve written here. Neither is this about which currency I use to buy groceries or which one you use to buy gas. This is about how international transactions between different countries and different national currencies are settled.
I never said currency will be replaced with some undefined non-monetary thing. I said that one currency (USD) will be replaced with many on the international stage. In fact it’s already happening.
There is, believe it or not, a vast array of possibility between a single hegemonic currency linked to a single global hegemon and no currency at all. How do you think international trade worked for a couple centuries before the US organized its dollar to be the world reserve currency?
I agree that dedollarization will change our economic and political paradigms. I agree that a lot of the ways in which we think about these things today will be irrelevant in the dedollarized future.
If you’re interested in how we got to where we are today, I recommend Michael Hudson’s work.