De-dollarization has almost become something that countries around the world are scrambling to do. This year, led by China, Russia, Japan and India, 42 countries have been selling dollars on a large scale. At this time, the United States once again advocated linking the U.S. dollar to gold. What was its purpose? The driving force behind it finally emerged.
First of all, we need to know why national trade requires billions of dollars to settle. This is of course not just because the United States is the most developed country in the world. It is because when conducting trade between countries, credibility must be used as an endorsement. In World War II , the damage to the United States was very small, and the U.S. economy developed rapidly after World War II.
At this time, the currencies of other countries were on the verge of collapse, and the economy was in urgent need of recovery. At this time, using the U.S. dollar for national trade settlement was the best choice. In 1944, 44 countries established the U.S. dollar as the international trade settlement currency, and also stipulated that the U.S. dollar be directly linked to gold. This is the famous Bretton Woods system. .
However, after World War II, the US fiscal deficit was very huge, and dollar crises broke out many times. At this time, the US dollar and gold were completely decoupled. In 1971, the Bretton Woods system collapsed. Although the U.S. dollar is decoupled from gold, the United States ranks first in the world with military power, consolidating the U.S. dollar's international currency settlement. At the same time, there have been almost no credit storms in U.S. debt, so the U.S. dollar has been the most important international currency since 1944.
However, with the development of the times, the economies of various countries have also made rapid progress. But starting in 2020, the United States' uncontrolled money printing has plunged the world into an inflation crisis. Especially after the outbreak of the Russo-Ukrainian war, the largest inflation in 40 years occurred. At the same time, various countries had to face the United States' radical interest rate hikes, which plunged countries around the world into extreme panic.
What followed was that many countries were selling off U.S. debt in order to avoid being harvested by the dollar, and more and more countries began to seek a multilateral trade settlement system. Among them, after my country successfully promoted the Belt and Road Initiative, at least 28 countries have settled in RMB with our country.
At the same time, after Russia was sanctioned by Western countries, it also announced that trade with Russia must be settled in rubles . At the same time, Japan and India, as economic giants, also more or less use their own currencies to settle trade with other countries.
At this time, when the U.S. government and the Federal Reserve saw more than 40 countries selling U.S. debt in large quantities, they also realized that the dollar crisis was imminent. Even the Dutch central bank has hinted on other websites that gold may once again become the core of the world's monetary system. Once the U.S. dollar is swallowed up by gold or other currencies, the United States will inevitably fall apart due to the huge amount of debt.
At the same time, in recent years, China, Russia, Germany, France, Poland, Hungary and other countries have successively shipped gold stored in the United States back to their home countries.
It can be seen that all countries around the world have lost confidence in the US dollar. According to a report published by US media Zero Hedge on June 20, West Virginia state lawmakers proposed to the House of Representatives to re-inject the value of gold into the US dollar and return the decision-making power to the US market.
It is conceivable that if the US dollar returns to the gold system, then the United States can harvest the world through the dual means of the US dollar and gold, how terrifying it is.
