USD is fundamentally a kind of credit supported by military hegemony. If people no longer use USD as settlement currency and reserve currency, then the value of the USD is just a few pieces of paper.
So when did the US dollar start to have a hegemony? Simply put, the war gave the US dollar the ability to dominate the world. The battles of , and , , made the United States make a fortune in silence. The United States has engaged in industrial construction, especially military weapons, dumped them into Europe using the Lease Act, , etc., and used the dumping to make a war money.
After World War II, because Britain lost its status as a colonial empire in the war, the world gold reserves Due to the US war speculation, more than 75% of the world's gold was concentrated in the United States, and the British pound lost its status as a mainstream currency!
In 1944, a far-reaching meeting was held in a small town in the United States, including the United Kingdom, the United States and the small town of Bretton Woods, New Hampshire. After fierce competition, the US dollar replaced the pound and became the mainstream currency in the world. Although Britain is reluctant, all countries still cannot live without the United States, so Britain can only agree. On the one hand, the post-war recovery is crucial, and on the other hand, it is due to the strength of the United States. It is very convincing to use the United States' national strength to peg gold and the US dollar. The US dollar has distributed a large amount of dollars to the world through gifts, credit, purchase of foreign goods and services. As productivity releases, demand for the US dollar has increased significantly.
USD can be issued unlimitedly, while gold reserves, this precious metal cannot be produced unlimitedly. So by 1971, the Bretton Woods system collapsed. The United States announced that gold will be decoupled from the US dollar. European countries were unwilling to become slaves of the US dollar, so they began to take the lead in opposing the hegemony of the US dollar. At this time, European countries took the lead in transporting tons of gold from the United States to their own countries, and this time, the first dollar crisis of was created. But Americans soon came up with new ways to tie the dollar to oil.
1973, the OPC Organization of the Petroleum Exporting Countries agreed to the US dollar and oil linkage, and oil trading must use US dollars. If an industrialized country wants to develop, it cannot be separated from the blood of industry - oil. The Americans used the US dollar to bind oil, and later used the commodity as a floating anchor to bind the US dollar to stabilize the exchange rate of the US dollar.
By the 1980s and 1990s, in just a few decades, there were more than 2,000 derivatives on in the futures market. The US dollar made full use of the high risk of derivatives to eliminate the high liquidity of the US dollar. The US dollar makes full use of the liquidity brought by quantitative easing, and while investing in the capital market, it invests in the futures market, such as energy futures , raw material futures and grain futures. The fluctuations in the futures market are due to the existence of these speculators. Currently, more than half of the speculators do not deliver futures in the futures market. The ups and downs of the futures market have triggered imported inflation and deflation. In this way, the US dollar flowed out, and the domestic pressure on inflation was transferred to countries around the world. Developed countries adapt to the rise in market raw material prices by giving up the real economy and reducing consumer demand. For , developing countries, , raw material prices rise and the real economy will be affected, and the returns will be reduced. There will be situations where funds will be transferred to the speculative product market, with the increase in speculative products, and funds will be precipitated, and even usury will cause high debt. In this way, emerging local governments will form high debt.
. In terms of overseas funds, the US dollar uses low-priced funds to form strategic tightening and uses a large amount of funds to purchase entities. When the US dollar raised interest rates on and , capital in developing countries stopped supplying funds in order to repay the money, causing the US dollar to flow back. The consequences are the breakdown of the industrial capital chain, the collapse of the economy of developing countries, and the bankruptcy of enterprises. In this way, the US dollar made a lot of money in the futures market and capital market, respectively, and made a lot of wealth.
In addition, the United States uses the SWIFT system, that is, the Global Interbank Financial Telecommunications Association or the Global Interbank Financial Communication Association system to regulate financial investment and trade settlement transactions around the world.The recent conflict between Russia and Ukraine has caused Russia to be kicked out of this system, causing economic and trade fluctuations, and in the long run, poses a threat to national security.
USD continues to harvest wealth from various countries through interest rate cuts and interest rate hikes. You should know that wealth is the piece of paper in your hand, but the real thing you can exchange for. These are wealth. The real wealth requires developing countries to bear the pressure on natural resources, manpower and the environment. Although the trade surplus for us, a developing country, is huge, the negative consequences of industrialization are also very serious!
USD 0 USD hikes and cuts several times, and the economic lifeline of a country is controlled! The US government can also absorb the US dollar to return to the United States by issuing US bonds . Generally speaking, in order to maintain and increase the value of assets, the creditors hold and purchase US bonds, and the US dollar returns to the United States again in this way. Due to sufficient funds, prices in the United States remained basically at low levels, such as around 2%. Compared with the growth of GDP in the United States, there is basically no inflationary pressure.
On the other hand, the United States has used sufficient funds to invest in the high-tech field, allowing the United States to lead the high-tech revolution in the world, and the world is deeply controlled by the United States' technological hegemony.
However, due to the existence of this dominant position of American hegemony, the United States has over-inflation. The United States has embarked on the path of controlling and governing other countries' economies with long arm, and it is common to instigate the division of sovereign states and conflicts in ideological .
In November 2000, Iraq announced the repricing of oil reserves. I want to use euro as the settlement currency for oil. This can move American cheese. On December 13, 2003, Saddam was arrested by the US military, and on December 30, 2006, Saddam was hanged. After the United States occupied Iraq, it soon announced that the US dollar was linked to oil and used the US dollar to settle oil.
In January 2011, another Middle East strongman Gaddafi announced the settlement with euro and oil. As everyone knows, Gaddafi died tragically at the hands of the opposition. The Arab Spring broke out in Middle Eastern countries, and all the disobedient leaders were liquidated.
Argentina As a living example, it has changed from a developed country to a developing country, and falling into the middle-country income trap.
Argentina's government debt soared from US$25 billion in 1976 to US$75 billion in 1980. IMF ( International Monetary Fund ) entered the field of vision. Later, Argentina's state-owned enterprises were bought at the bottom by Wall Street .
By 1989, Argentina was on the verge of economic collapse and the inflation rate reached 4924%. Argentina acquiesced the privilege of the US dollar through the exchange plan. As a result, by 1999, Argentina's debt rose to US$150 billion, the unemployment rate reached 18%, and government revenue decreased by 20%. By 2002, Argentina re-announced the implementation of a floating exchange rate, and the "exchange plan" that lasted for ten years had failed.
In 2002, Argentina announced that it was unable to repay 95 billion US dollars of foreign debt , and the United States began to seize Argentina's assets to settle debts, such as Argentina's "Freedom" warship and overseas assets.
By 2015, a new round of strengthening cycle of the US dollar has arrived, and Argentine President directly announced the opening of foreign exchange controls, leaving life and death to God. The Argentine president also announced that it would pay 75% of the debt claims. Argentina has experienced the past few rounds of harvesting by the US dollar and is no longer panic. Just lie down. At worst, inflation has become Argentina's daily life.
The Russian-Ukrainian conflict in recent years, the Taiwan Strait crisis in the Asia-Pacific region, the South China Sea crisis, the Middle East oil crisis , the South America Latin America crisis, etc., all have the shadow of the US dollar and the United States.
As of 2020, the total scale of US Treasury bonds has reached 30 trillion. People have recognized the close relationship between the US dollar and war and crisis, and planning ahead is the key.
USD is the product of the combination of US financial capital and military hegemony. The United States brainwashs people around the world to maintain US hegemony through these two hands and public opinion hegemony!
