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The US Dollar’s Global Dominance Is Over! Here’s Why…
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The US Dollar’s Global Dominance Is Over! Here’s Why…
Welcome to Geopolitics Universe. In today's video I will be discussing and explaining why the US dollar global dominance is now over. But first, I would just like to welcome you to Geopolitics Universe, this is a channel where we share the latest news, rumours,and insights into all things on Geopolitics. You'll be able to find news surrounding all things to do with Geopolitics. I would really appreciate it if you could please like and subscribe, also I just wanted to announce as we are a new channel which is growing by the day, we will be launching a giveaway for a $50 Amazon gift card. All you have to do to enter is like and subscribe. The giveaway winner will be announced in due course. Now let's carry on with the video. The tale began in 1944. World War II was at its peak in Europe. Amidst such insecurities, 44 allied nations convened in New Hampshire to establish the Bretton Woods System. Under the stipulations of the system, all countries adjusted their currencies to the US dollar while fixing the dollar to gold. They assumed that fixing a gold standard would reduce volatility in the global economy. Conveniently, that agreement also established US hegemony over global trade. However, by the early 1970s, that system collapsed as the US encountered a gold crunch. The US faced a balance of payments crisis. The Federal Reserve did not have enough gold reserves to back the dollar. The infamous Nixon Shock ended the US dollar’s convertibility to gold. Henceforth, the US dollar plummeted as countries rapidly lost confidence in the greenback. This is the point that pivots the reality of today. In the mid-1970s, President Richard Nixon struck a deal with the Organization of Petroleum Exporting Countries to trade oil exclusively in dollars in exchange for US military assistance. Consequently, the petrodollar emerged, oil prices quadrupled, and the rest is history. Ever since, the US dollar has been the undisputed exchange-reserve currency across the world. Agreements with Saudi Arabia and the rest of the Middle East reinforced the global oil trade in the greenback currency. Trading oil and gas futures, denominated in the dollar, entrenched the position of the US as the global superpower. While the euro surfaced as a strong contender in the 1990s, dollar-based finance continued to flourish. Developing economies like China and Russia had no choice but to hold US Treasuries and accrue massive dollar reserves to hedge currency risk. And, while fractious elements, like Iraq’s Saddam Hussein, and Muammar Gaddafi relentlessly attempted to derail the petrodollar, those efforts led to invasion, assassination, and decimation. Today, multiple geopolitical and economic factors are again turning the tide against the supremacy of the US dollar. Rapid globalization was already a ticking time bomb situation for the greenback. Now, China’s rise as the next potential economic powerhouse, Russia’s exclusion from the dollar-driven SWIFT system and a global economic slowdown are challenging the dominance of the US dollar. The trend towards de-dollarization is not exactly a novel phenomenon. Latin America attempted to move away from the dollar in the 1990s. In response to US sanctions, Venezuela sought to pay for oil payments in Chinese yuan instead. Chile de-dollarized in the 1980s and generally avoided dollarization. In the early 2000s, Iraq attempted to sell oil in euros while Libya actively lobbied for years to forge a pan-African gold standard. However, the global financial crisis of 2007-08 reversed this trend to de-dollarization. Over the last decade, no significant development emerged to diminish the dominance of the US dollar.
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Tags:
Russia-China,Yuan reserve currency,dollar reserve currency,American economy,cnbc,russia case study,Yuan vs Dollar,Digtal Yuan,Digital Dollar,putin style,Vladimir Putin,Russia Ukraine war,Putin speech,Dollar hedgenomy,geopolitical case study,us economy,china economy,Russia economy,peter schiff,peter zeihan,liz truss,oil wars,oil eocnomy,geoplitics,OPEC,investing future,investing news,think school,us stock market,us economy collapse,crude oil
"Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favour of fair use."
#usa #dollar #geopolitics #economics
Welcome to Geopolitics Universe. In today's video I will be discussing and explaining why the US dollar global dominance is now over. But first, I would just like to welcome you to Geopolitics Universe, this is a channel where we share the latest news, rumours,and insights into all things on Geopolitics. You'll be able to find news surrounding all things to do with Geopolitics. I would really appreciate it if you could please like and subscribe, also I just wanted to announce as we are a new channel which is growing by the day, we will be launching a giveaway for a $50 Amazon gift card. All you have to do to enter is like and subscribe. The giveaway winner will be announced in due course. Now let's carry on with the video. The tale began in 1944. World War II was at its peak in Europe. Amidst such insecurities, 44 allied nations convened in New Hampshire to establish the Bretton Woods System. Under the stipulations of the system, all countries adjusted their currencies to the US dollar while fixing the dollar to gold. They assumed that fixing a gold standard would reduce volatility in the global economy. Conveniently, that agreement also established US hegemony over global trade. However, by the early 1970s, that system collapsed as the US encountered a gold crunch. The US faced a balance of payments crisis. The Federal Reserve did not have enough gold reserves to back the dollar. The infamous Nixon Shock ended the US dollar’s convertibility to gold. Henceforth, the US dollar plummeted as countries rapidly lost confidence in the greenback. This is the point that pivots the reality of today. In the mid-1970s, President Richard Nixon struck a deal with the Organization of Petroleum Exporting Countries to trade oil exclusively in dollars in exchange for US military assistance. Consequently, the petrodollar emerged, oil prices quadrupled, and the rest is history. Ever since, the US dollar has been the undisputed exchange-reserve currency across the world. Agreements with Saudi Arabia and the rest of the Middle East reinforced the global oil trade in the greenback currency. Trading oil and gas futures, denominated in the dollar, entrenched the position of the US as the global superpower. While the euro surfaced as a strong contender in the 1990s, dollar-based finance continued to flourish. Developing economies like China and Russia had no choice but to hold US Treasuries and accrue massive dollar reserves to hedge currency risk. And, while fractious elements, like Iraq’s Saddam Hussein, and Muammar Gaddafi relentlessly attempted to derail the petrodollar, those efforts led to invasion, assassination, and decimation. Today, multiple geopolitical and economic factors are again turning the tide against the supremacy of the US dollar. Rapid globalization was already a ticking time bomb situation for the greenback. Now, China’s rise as the next potential economic powerhouse, Russia’s exclusion from the dollar-driven SWIFT system and a global economic slowdown are challenging the dominance of the US dollar. The trend towards de-dollarization is not exactly a novel phenomenon. Latin America attempted to move away from the dollar in the 1990s. In response to US sanctions, Venezuela sought to pay for oil payments in Chinese yuan instead. Chile de-dollarized in the 1980s and generally avoided dollarization. In the early 2000s, Iraq attempted to sell oil in euros while Libya actively lobbied for years to forge a pan-African gold standard. However, the global financial crisis of 2007-08 reversed this trend to de-dollarization. Over the last decade, no significant development emerged to diminish the dominance of the US dollar.
Please leave a like, comment, subscribe, turn the notification bell on and share!
Subscribe to our channel to enter our giveaway🎁:
Tags:
Russia-China,Yuan reserve currency,dollar reserve currency,American economy,cnbc,russia case study,Yuan vs Dollar,Digtal Yuan,Digital Dollar,putin style,Vladimir Putin,Russia Ukraine war,Putin speech,Dollar hedgenomy,geopolitical case study,us economy,china economy,Russia economy,peter schiff,peter zeihan,liz truss,oil wars,oil eocnomy,geoplitics,OPEC,investing future,investing news,think school,us stock market,us economy collapse,crude oil
"Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favour of fair use."
#usa #dollar #geopolitics #economics
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