Monday, September 3, 2018

One in four people now live in a country that is working towards ending use of the dollar as their primary medium of exchange

Last week we published an article citing how the U.S. currently has active economic sanctions of some measure against at least 10% of all economies in the global financial system.  But what is missing in that relatively 'low percentage' is just how many people are living in nations where their government's are now focused and dedicated towards ending dollar hegemony, and with the U.S. having unipolar control over the global reserve currency.

In the midst of America's economic euphoria it is worth remembering that one of every four people on the planet lives today in a country whose government is committed to end the dollar hegemony. Thwarting their effort should be Washington's top national priority. - CNBC
China of course stands out as the leading population center that is being attacked by Washington through the use of tariffs and Forex.  But perhaps just as importantly to dollar hegemony is the fact that the foundation of its being allowed to function as the reserve currency is quickly being eroded by Petrodollar nations, such as in this new agreement announced on Sept. 2 between Iran and Iraq.
Defying Washington’s pressure to break off business ties with Iran, Tehran’s international trading partners are determined to maintain their mutually-beneficial cooperation with the Islamic Republic, some even at the expense of dumping the US dollar. 
Iraqi authorities have stopped using the US dollar in trade operations with Iran in favor of national currencies and the euro, the chairman of the Iraqi-Iranian Chamber of Commerce Yahya al-Ishaq told the agency Mehr on Sunday. 
"We abandoned dollar transactions, most of the trade transactions will be in euros, Iranian riyals and Iraqi dinars," he said, pointing out that in certain cases a system of mutually beneficial exchange is envisaged. According to al-Ishaq, the average annual trade turnover between Iran and Iraq is $8 billion. – Sputnik News
There are two schools of thought in regards to President Trump's financial 'war on the world', and his willingness to not only sanction any nation who he is in disagreement with, but also in tearing up long-standing agreements in both trade and finance.  And these two 'theories' are that he is either completely ignorant of financial consequences, or that he realizes that the system the world is currently under cannot be reformed and thus he is purposefully triggering nations to dump the dollar to allow for the formation of an entirely new system.

Only time will tell which one of these scenarios are true, but what is absolutely certain is that the world is quickly moving towards one that is anti-dollar, and where that crucial point of reaching critical mass appears not to be that far away.

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