Although the dollar has long been decoupled from **, countries around the world are still using the dollar, which makes the United States sit back and enjoy it. Not only in normal times, but in special periods, the United States also uses the US dollar as the world currency to create a dollar tide by cutting and raising interest rates, and then uses financial means to harvest the wealth of other countries, which can be described as making a lot of money.
After a long time, the manufacturing-oriented countries were not happy, and the goods produced by tears and sweat were exchanged for the paper money printed in the United States, and they had no choice but to return to buy American bonds, supporting the development of the United States, but they were often bullied by the United States.
After a long time, some countries that sold oil and gas resources were not satisfied, and the dollar depended on oil for circulation, and because these oil-producing countries occupied an important geographical location, these regions were disturbed by the ** people supported by the United States, and the United States intervened by force and promised to protect its allies in order to consolidate the foundation of the petrodollar.
The United States knows that many countries are not satisfied, so it is actively developing force and relying on strong force to deter countries with different intentions, and whoever wants to shake the position of the dollar will find an excuse to carry out armed strikes. Obviously, the hegemony of the United States is based on the military power to safeguard the rights and interests of the dollar, and the dollar supports the wealth of the United States.
In the era of globalization, the profit-seeking nature of capital has caused American capital to be transferred to all parts of the world, resulting in the hollowing out of the real economy of the United States, while the financial services industry is highly developed and is known as the financial empire. Due to the special status of the dollar, the financial empire can open the money printing machine in times of crisis and rely on borrowing to deal with the crisis, but the flood of the dollar will inevitably cause a decline in credit, and the United States will have to shrink in time to enjoy the rights and interests of the dollar for a long time, and in the 2022-2023 period, the Federal Reserve will continue to raise interest rates, so that the benchmark interest rate will rise to more than 5%. Nearly $34 trillion in national debt, interest expenses alone account for one-fifth of the annual fiscal revenue of the United States, the debt accumulated by long-term deficits cannot be wiped out in the short term, the debt is increasing in the context of high interest rates, resource countries, production and manufacturing countries are more suspicious of the credit problem of the dollar, dollar substitution, diversification of reserves is imperative.
The Russia-Ukraine war, Western financial sanctions against Russia, the freezing of Russian assets, and the recent discussion on how to use Russia's frozen $300 billion are enough to subvert the perception of the US dollar credit system in countries around the world. This makes more countries worry about the safety of the single reserve of the US dollar, and the substitution of the US dollar and the diversification of reserves are the right way, so it is sought after by central banks of various countries, and countries are also seeking bilateral settlement in their own currencies.
Local currency settlement, bilateral currency swap cooperation, are all bypassing the single dollar, which shakes the foundation of the dollar, the world currency seems to be a thousand miles of embankment, but there is an anthill, this is the pain of the dollar's heart.
In the past, all countries that have violated the foundation of the dollar, such as Libya and Iraq, have been crippled;Since the birth of the euro, there have also been regional wars in Europe and the debt crisis of the five European pig countries, which have dragged the euro stronger each time, which has weakened the euro's ability to challenge the dollar.
This time, China is actively promoting the internationalization of the renminbi, along with the reform of the financial system, the pace of military construction is faster, new equipment has sprung up, scientific and technological innovation is also advancing rapidly, regional denial and self-preservation are no problem, and the recurrence of tragedies like Libya and Iraq, such as Russia, Saudi Arabia, Iran and other resource exporters have also agreed to use the renminbi settlement, in addition to the reason for the game, they see clearly the gap between industrial production in the United States, which makes the US military dare not directly attack the eastern powers, after all, the financial services industry can not make up for the war losses, and the war depends on industrial strength.
This time, the Russian-Ukrainian war accelerated de-dollarization, Russia was sanctioned, and had to switch to RMB settlement, while it used its own currency settlement with Iran, which set a model for the world, and resource exporters are no longer bound to the dollar, which is a signal that there are cracks in the petrodollar foundation. The more oil China imports, the more yuan resource exporters get, and the renminbi has enough credit guarantees in exchange for Chinese goods, which will make the renminbi more and more popular.
The dollar is very painful, and the main force to maintain the status of the dollar should be the US military, but unfortunately the US military's deterrence is not as good as before, not to mention the Russian-Ukrainian battlefield, and in the face of the Yemeni Houthi rebels, they can only send aircraft carriers to fill the façade, and they are very afraid of going straight to the end. The boss's fist is not hard, and the younger brother is no longer pretending to be a tiger, and even if the US military waives its flag and shouts, few people come to help.
Another way to maintain the status of the US dollar is the prosperous US capital market, whether it is US bonds or US stocks, as long as the virtual market is having a good time, there will always be a huge amount of capital willing to flow to the United States. High interest rates hurt economic vitality, and high interest rates have also increased the interest on U.S. bonds. According to historical experience, after the interest rate cut, a part of the capital will flow out of the United States, which will have a greater impact on the U.S. stocks, especially in the context of more U.S. stocks, once the capital flees, the pressure on the U.S. stocks is great. The U.S. ** Exchange Commission suddenly wants to approve the issuance of spot bitcoin ETFs, which may have to leave hot money through the activity of bitcoin, and the virtual market is really playing with flowers.
The world is material after all, and virtual markets and financial games cannot replace production and manufacturing, and unless the dollar always maintains its status as the world's currency, it cannot be done once and for all by issuing bonds, printing money, and harvesting. China, an industrial powerhouse, is upgrading its manufacturing industry in a down-to-earth manner, with a steadily growing military strength to protect its wealth, and many countries are also substituting dollars under the guidance of diversified reserves.
The dollar was heartbroken, but helpless, there was still a large red halo in the sky over the empire, which was the splendor before dusk, and after the day was night, the law dictated.