As I write some 24 nations have joined with the BRICS nations (Brazil, Russia, India, China, and South Africa) to form an alliance to reject the Dollar and trade with Alternative Currencies. This is the first time since the End of WWII that this type of event is occurring. Why is this happening and what will be the 'consequences' of this new trading regime on the future of America? I sense that this is hugely SIGNIFICANT!
America has had a HUGE advantage since the END of WW II because our Dollar has been the RESERVE CURRENCY for the world. The American Dollar has been allowed (favored) so as to purchase goods and services from all the 200+ nations on this planet with no real need to exchange equal VALUE with these nations. America has run a TRADE deficit since 1976 with most nations (this is allowed as Dollars have been the exchange medium with all these nations for their goods and services).
America produces Dollars (by Fiat) for exchange on the world markets by merely printing Treasury Bills/Notes and exchanging these bills/notes for goods and services. Today, the word 'printing' should be changed to 'digitizing'. We now have a digital dollar. America has not had to exchange VALUE for VALUE since the END of WW II for their consumer goods and services (those goods/services purchased from foreign nations). Essentially, America has had a FREE ride from the world so as to consume and spend (in excess) with no real need to give VALUE for VALUE (in exchange). This situation is now changing!
American's think that the American Dollar's role in world trade can continue indefinitely. But all this is now CHANGING in 2023. Russia, China, Brazil, India, South Africa, Saudi Arabia, Iran, and a host of other nations (some 24) are saying ENOUGH is ENOUGH. They now witness the HUGE debts which America has accumulated mostly since the END of WW II. Many are now saying that ENOUGH is ENOUGH and the FREE RIDE is OVER for America. Also, the hegemony which America has is no longer desired!
The American $$$$$$$$$$ is now created OUT-OF-NOTHING (by Fiat) and then given to these foreign nations for their real goods and services. Trillions of dollars $$$$$$$$$$$ get created and funneled to all parts of the planet so that American's can consume goods/services which are not paid for in a VALUE for VALUE exchange. America buys fertilizer from Russia and exchanges dollars. America buys oil from Saudi Arabia and exchanges dollars. America buys furniture, apparel, and appliances from China and exchanges dollars. But what is a 'dollar' which gets created OUT-OF-NOTHING (and gets added to our DEBT hoard)? Why no VALUE for VALUE exchange?
As of today, America has a National Debt of over $31 trillion. Add the State, Local, and Consumer debt and the number is over $95 trillion. America has run a trade deficit (continually) since 1976 (not one surplus). Is this a VALUE for VALUE exchange with our trading counterparties? Is this an Apple for an Apple? A Orange for an Orange? In reality it is a NOTHING for a SOMETHING. Yes, America has done many GOOD deeds for the world. Some assume this will continue. But many nations are now thinking that our GOOD deeds are unworthy of being honored going forward (like they were previously).
America rules the oceans and uses their military might to subdue any nation which challenges their rule/control. Russia is fed up with this favoritism. China is fed up with this favoritism. Saudi Arabia is also fed up with Biden's foreign policy and the Petro dollar. Iran hates the Great Satan. Brazil, India, South Africa and a growing number (some 24 to date) are now saying ENOUGH is ENOUGH. They desire to rid the world of the favoritism which our American Dollar gets from its Reserve Currency Status. They are now wanting VALUE for VALUE when trading with America (not mere 'dollars' which America creates with the click of a computer key) and adds as a bookkeeping entry to their accumulating DEBT.
International trade is changing in 2023. The BRICS will bring a change to the American dollar and its favored status (so it seems). Will this mean that America will lose POWER and CONTROL over the world markets? I think so! America has acquired its STATUS of WEALTH, POWER, and CONTROL from their DOLLAR status. The Dollar has been the tool which has allowed AMERICA to grow and become a SUPER POWER. All this is now changing in 2023 and 2024 (and after). Prepare for a LOSS in purchasing power as the DOLLAR gets devalued on the international markets. It's happening NOW!
Biden can not stop this trend. Trump can not stop this trend. No American politician can stop this trend as the WORLD now understands our bookkeeping SITUATION. America has gained all its WEALTH, POWER, and HEGEMONY from its favored DOLLAR STATUS. The world was willing to accept this situation for these past 75 years. But the GAME is now changing and many world nations now think that AMERICA has taken advantage of this favored status. Our national DEBT is evidence. Our Trade Deficit is evidence. Our QE (counterfeiting) polices since 2008 are evidence.
The GAME is over for AMERICA and the writing is on the wall. American hegemony must wane (going forward) and this means the END of historical American WEALTH and POWER. America lives with a DOLLAR that has allowed all this prior history. This GAME is now over. We could witness a BIG change in the VALUE of the American Dollar later in 2023 and 2024. We could also witness a waning of international hegemony as this situation grows and magnifies. Who understands what is happening in front of our EYES? Who sees the consequences which are emerging?
Prepare for huge austerity going forward. America can survive with less but America can not rule the world with a devalued Dollar. American wealth will decline and American control over the world system will also decline. MONEY (the American Dollar) has allowed us to prosper, grow, and rule as an EMPIRE. America wants a UNI-POLAR world system so it can survive. But all this is changing in 2023 and 2024. The END of historical AMERICA is HERE. We now need to accept our situation and create a NEW MODEL for our planet. That is my viewpoint! Think for yourself!
www.usdebtclock.org (the evidence is here for everyone to witness)!
America now needs to learn to exchange value for value (in real terms)! Reliance on the Dollar as our Savior is over! Funny money is over! Counterfeiting is over! VALUE for VALUE is here!
I am: Donald B. Swenson, Economist/Philosopher, donaldswenson.blogspot.com.
http://kingdomecon.wordpress.com
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