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.
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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.
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