Commodity Trade Mantra

Posts Tagged ‘Bretton Woods’

Understanding the Death of the US Dollar

Is it possible that the collapse of the US dollar as the leading reserve currency has already begun? The answer is ‘yes’. Looking at the massive flows of gold to China, the rise of a dollar competitor in the form of the SDR, and the coming inclusion of the Chinese yuan in the SDR basket, it is difficult not to conclude that the dollar collapse has already begun.

A Portrait of the Classical Gold Standard

The gold standard was the one outstanding symbol of unity and economic solidarity which the nineteenth century world had developed. Under Bretton Woods (1944), the gold standard was effectively abandoned: domestic convertibility was illegal and the role of gold was very constrained in favor of the dollar.

Why It Matters If the Dollar Is the Reserve Currency

The causes of threat to the US dollar as a reserve currency are the policies of the Fed itself. There is no conspiracy to attack the dollar by other countries. A loss of demand for holding the US dollar as a reserve currency would mean that trillions of dollars held overseas could flow back into the US, causing either inflation, recession, or both.

Rise of the Petro-Yuan & the Slow Erosion of Dollar Hegemony

Linking the dollar to international oil trading was key to creating a new version of dollar primacy (“dollar hegemony 2.0”) & by extension, in financing another forty years of American hegemony. With the rise of the “petroyuan,” movement towards a less dollar-centric currency regime in international energy markets is already underway.

Watch the Petrodollar - Ron Paul

Want to know when the fiat US dollar will collapse? Watch the petrodollar system & the factors affecting it. This is important, because once the dollar loses its coveted reserve status, the consequences will be dire for Americans. It will be the day when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars.

What The World Bank Actually Does

What is the World Bank, what does it do & why is it important for the BRICS to challenge its hegemony in the development & poverty reduction arenas? For answers, we need to examine both – the official history that it touts to the outside world & real history of its part in plundering the developing world that it is supposedly there to help.

No Escape from the Dollar as the Currency Standard

All commodities are priced internationally in dollars & the dollar is used for over 80% of cross-border trade settlements.The yuan, ruble, rupee & all other Asian & emerging-economy currencies involved may be able to trade between themselves without the dollar, but still remain on a dollar standard.

The Rise of the Petroyuan and the Slow Erosion of Dollar Hegemony

For the last 40 years, a pillar of dollar primacy has been the greenback’s dominant role in international energy markets. Today, China is leveraging its rise as an economic power & as the most important incremental market for hydrocarbon exporters in the Persian Gulf & the former Soviet Union to circumscribe dollar dominance in global energy.

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