Trump Destroys US Dollar Dominion

[Marion Morrison]

Long story short: If the world moves off of the petrodollar, dollars are worth 80 cents. That's the gist of it.

Nothing super-catacalysmic for most.

 

[sparky]

I've read these nutty articles about how the dollar was going to lose its hegemony for decades now, usually written by some crackpot with no understanding how the global monetary and payments system works. This crazy site is no different. They've been making the argument back when Bush was President, saying Bush was the reason why the dollar would stop being the reserve currency. Guess what? It didn't happen. And it's not going to happen under Trump, or the next President, or the next President, or the President after that.

The simple fact is that there is no alternative, not the euro, not the yuan, not gold, nothing.

Nice straw man.
I don't believe that the OP or the article linked in the OP gave rise to the premise that the dollar's role as reserve currency was challenged.

Here's where we stand>
Why the U.S. Dollar Is the Global Currency
Here's where it could all go>
Will the Yuan Replace the Dollar as a Global Currency?

~S~

 

[Marion Morrison]

I've read these nutty articles about how the dollar was going to lose its hegemony for decades now, usually written by some crackpot with no understanding how the global monetary and payments system works. This crazy site is no different. They've been making the argument back when Bush was President, saying Bush was the reason why the dollar would stop being the reserve currency. Guess what? It didn't happen. And it's not going to happen under Trump, or the next President, or the next President, or the President after that.

The simple fact is that there is no alternative, not the euro, not the yuan, not gold, nothing.

Nice straw man.
I don't believe that the OP or the article linked in the OP gave rise to the premise that the dollar's role as reserve currency was challenged.

Here's where we stand>
Why the U.S. Dollar Is the Global Currency
Here's where it could all go>
Will the Yuan Replace the Dollar as a Global Currency?

~S~

I just don't see it. The US has the wise people.

 

[Tehon]

I've read these nutty articles about how the dollar was going to lose its hegemony for decades now, usually written by some crackpot with no understanding how the global monetary and payments system works. This crazy site is no different. They've been making the argument back when Bush was President, saying Bush was the reason why the dollar would stop being the reserve currency. Guess what? It didn't happen. And it's not going to happen under Trump, or the next President, or the next President, or the President after that.

The simple fact is that there is no alternative, not the euro, not the yuan, not gold, nothing.

Nice straw man.
I don't believe that the OP or the article linked in the OP gave rise to the premise that the dollar's role as reserve currency was challenged.

Here's where we stand>
Why the U.S. Dollar Is the Global Currency
Here's where it could all go>
Will the Yuan Replace the Dollar as a Global Currency?

~S~

All well and good but that is way out in the distance, if ever.

In the here and now we are discussing how the dollar and the global financial infrastructure, dominated by the US, is used as a weapon to maintain a world order favorable to the US. And how that is breaking down. Straw men need to be knocked down. Toro needs to address the contents of the article.

I disagree that it is being laid at the feet of Trump. He is not altering the course, but he did not set it either.

 

[sparky]

I honestly don't know Tehon. I'm posting what i read on this god forsaken device

To keep it simple (and yes i need to) would be to understand how any monetary system attains (and maintains) valuation

I.E.> the $ is the global fiat benchmark ,,,,,why?

It's a piece of paper backed up with....what?

Other countries wish to replace it.....how?

As to Trump, i agree he's just a bit player in the global arena , most of what i'd ask has been set in motion tracing a century back to Jekyl Island , Bretton woods influences

One thing i'll say that doesn't require much fiscal smarts is, i hope they (the world) continues to need us, more than we need them

~S~

 

[Tehon]

One thing i'll say that doesn't require much fiscal smarts is, i hope they (the world) continues to need us, more than we need them

That is the American exceptionalism we hear so much about.

I don't imagine the world needs us. We have imposed ourselves on the world.

 

[georgephillip]

Blah blah blah.

I’ve been reading this nonsense for decades.

There are no other alternatives. Not euros - will it even exist in a decade? Not yen - Japan is in terminal decline and runs massive deficits. Not the yuan - China is a closed, command economy. Not gold - lol “gold.” Not SDRs - WTF are they?

No, nothing.

So suck eggs, America haters!

No, nothing.

So suck eggs, America haters!

MAGA yet?

Your free lunch is almost over.

Bloomberg - Are you a robot?

"When Giscard d’Estaing coined the phrase 'exorbitant privilege,' he was referring to the fact that the U.S. gets what amounts to a permanent, interest-free loan from the rest of the world when dollars are held outside the U.S.

"As Eichengreen points out, it costs only a few cents for the U.S. Bureau of Engraving and Printing to produce a $100 bill, but other countries have to pony up $100 worth of actual goods and services to obtain one.

"Dollars that foreigners willingly accept and trade among themselves are like little green IOUs to the rest of the world.

"They allow Americans collectively to consume more than they produce—to live beyond their means."

America's a wounded beast strangling on greed and debt; it can inflict horrific damage, but it can not recover. It's death blow will come when its Imperial Dollar is dropped as the world's reserve currency, a process well underway.

The value of the dollar will plummet, setting off a severe depression and demanding instant contraction of the US military's global presence.

Maybe Jesus will save you?

The World to Come

 

[georgephillip]

For decades the "deep states" of elite capitalist nations assumed the only threat to their continued economic pillage and plunder came from the political left.

And then came Trump.

"FEBRUARY 1, 2019
Trump’s Brilliant Strategy to Dismember U.S. Dollar Hegemony
by MICHAEL HUDSON

"The end of America’s unchallenged global economic dominance has arrived sooner than expected, thanks to the very same Neocons who gave the world the Iraq, Syria and the dirty wars in Latin America.

"Just as the Vietnam War drove the United States off gold by 1971, its violent regime change warfare against Venezuela and Syria – and threatening other countries with sanctions if they do not join this crusade – is driving European and other nations to create their alternative financial institutions..."

"The Neocons who Trump has appointed are accomplishing what seemed unthinkable not long ago: Driving China and Russia together – the great nightmare of Henry Kissinger and Zbigniew Brzezinski.

"They also are driving Germany and other European countries into the Eurasian orbit, the 'Heartland' nightmare of Halford Mackinder a century ago.

"The root cause is clear: After the crescendo of pretenses and deceptions over Iraq, Libya and Syria, along with our absolution of the lawless regime of Saudi Arabia, foreign political leaders are coming to recognize what world-wide public opinion polls reported even before the Iraq/Iran-Contra boys turned their attention to the world’s largest oil reserves in Venezuela: The United States is now the greatest threat to peace on the planet."

"The Neocons who Trump has appointed are accomplishing what seemed unthinkable not long ago: Driving China and Russia together – the great nightmare of Henry Kissinger and Zbigniew Brzezinski."

Am I the ONLY one who caught this?

'What seemed UNTHINKABLE'?

1. Your quote above says Henry Kissinger THOUGHT of it decades ago.

2. I'm no Henry Kissinger, but with a little common sense and knowledge of history I also thought about Russia and China uniting....and I'm sure I am not the only one.

Once upon a time Nazi Germany and Japan, THE world's 'evil' super powers, teamed together to taken not just the United States but also the world.

The United States is the world's current unequaled super power for 'good' (or it used to be before we started helping terrorists take over the govt of sailed nations, helping terrorists who slaughtered 3,000 Americans kill other nation's rulers and take over their countries, and invading sovereign nations).

We are the reason the USSR collapsed and split apart, the one massive regret Putin voiced he had and wants to change. China wants to rule the world. The US stands in the way.

What makes more eventual sense than those 2 getting together one day?

UNTHINKABLE?

Seriously? No one else even THOUGHT this could happen?

"The Neocons who Trump has appointed are accomplishing what seemed unthinkable not long ago: Driving China and Russia together – the great nightmare of Henry Kissinger and Zbigniew Brzezinski."

Am I the ONLY one who caught this?

'What seemed UNTHINKABLE'?

For Neocons (and others) of a certain age, the possibility of a Sino-Soviet re-alliance seemed remote, at best, for decades:

Sino-Soviet split - Wikipedia

"In December 1979, the USSR invaded the Democratic Republic of Afghanistan to maintain the Afghan Communist government in power.

"The PRC (Peoples' Republic of China) viewed the Soviet invasion as a local feint, within Soviet's greater, geopolitical encirclement of China.

"In response, the PRC entered a tri-partite alliance with the U.S. and Pakistan to sponsor Islamist Afghan armed resistance to the Soviet Occupation (cf. Operation Storm-333).

"Meanwhile, the Sino-Soviet split became manifest when Deng Xiaoping, the paramount leader of China, required the removal of 'three obstacles' so that Sino-Soviet relations might improve:

1. The massed Soviet Army at the Sino-Soviet border and in Mongolia.
2. Soviet support of the Vietnamese occupation of Kampuchea (Cambodia).
3. The Soviet occupation of Afghanistan.

Forty years later, it's possible China and Russia have come to believe they have good reason to fear a US geopolitical encirclement?

 

[jc456]

Money has been electronic for decades

 

[whitehall]

Who the hell is Michael Hudson? Democrats gave us the mess in Korea that remains unstable for more than a half century at a cost of around 50,000 lives lost in three years. Democrats gave us Vietnam and the insane strategy that could win every battle and still lose the freaking war. Bill Clinton bombed Yugoslavia when he was literally caught with his pants down and Barry Hussein destabilized Libya when it was no longer a threat.

 

[sparky]

The World to Come

Christ on a cracker George , i'd dismiss this as fantasy,save that i see/read some of what he mentions actually happening

Searching for simplicity, we're the 'big kid' on the block right now, and being eyeballed by other players who want to knock us off that position.

Weapons of fiscal destruction are no joke, the term exists for similar reasons WMD does , it's just not as simple as something that goes <boom>

~S~

 

[Tehon]

Who the hell is Michael Hudson? Democrats gave us the mess in Korea that remains unstable for more than a half century at a cost of around 50,000 lives lost in three years. Democrats gave us Vietnam and the insane strategy that could win every battle and still lose the freaking war. Bill Clinton bombed Yugoslavia when he was literally caught with his pants down and Barry Hussein destabilized Libya when it was no longer a threat.

Michael Hudson worked as a wall street economist. He worked with the banks and big oil. Interesting guy actually. Grew up in a communist family before getting work on Wall Street.

Fortunately he is not a partisan shill. Which is probably why you are unfamiliar with him.

 

[georgephillip]

Christ on a cracker George , i'd dismiss this as fantasy,save that i see/read some of what he mentions actually happening

If you're unfamiliar with Chris Hedges's writing on these subjects, you might want to correct that.

Chris Hedges - Wikipedia

"Christopher Lynn Hedges was born in St. Johnsbury, Vermont, the son of Thelma Louise (née Prince) and the Rev. Thomas Havard Hedges, a Presbyterian minister.[14][15]

"He grew up in rural Schoharie County, New York, southwest of Albany. He graduated in 1975 from the Loomis Chaffee School, a private boarding school in Windsor, Connecticut.[16][17]

"He founded an underground newspaper at the school that was banned by the administration and resulted in his being put on probation.[18]

"Hedges received his Bachelor of Arts degree in English from Colgate University in 1979. He received a Master of Divinity degree from Harvard Divinity School (where he studied under James Luther Adams) in 1983.[19]

"He speaks English, Arabic, French, and Spanish, and studied Latin and Classical Greek at Harvard."

Hedges has been a war correspondent from Central America to Gaza. His accounts from Yugoslavia during the 1990s explain a great deal about the rise of Trump here.

The World to Come

"The dysfunction of democratic institutions, which vomit up con artists such as Donald Trump and hold as alternatives inept, corporate-indentured politicians such as Joe Biden and Nancy Pelosi, is cementing into place a new authoritarianism.

"The hollowing out of the pillars of the state, including the diplomatic corps and regulatory agencies, leaves the blunt force of the military as the only response to foreign disputes and fuels endless and futile foreign wars."

 

[georgephillip]

Who the hell is Michael Hudson? Democrats gave us the mess in Korea that remains unstable for more than a half century at a cost of around 50,000 lives lost in three years. Democrats gave us Vietnam and the insane strategy that could win every battle and still lose the freaking war. Bill Clinton bombed Yugoslavia when he was literally caught with his pants down and Barry Hussein destabilized Libya when it was no longer a threat.

Michael Hudson (economist) - Wikipedia

"Michael Hudson (born March 14, 1939) is an American economist, Professor of Economics at the University of Missouri–Kansas City and a researcher at the Levy Economics Institute at Bard College, former Wall Street analyst, political consultant, commentator and journalist.

"He is a contributor to The Hudson Report, a weekly economic and financial news podcast produced by Left Out. Paul Craig Roberts argues that he is the best contemporary economist.

"Hudson graduated from the University of Chicago(B.A., 1959) and New York University (MA, 1965, PhD, 1968) and worked as a balance of payment economist in Chase Manhattan Bank (1964–1968).

"He was assistant professor of economics at the New School for Social Research (1969–1972) and worked for various governmental and non-governmental organizations as an economic consultant (1980s–1990s).

"Hudson has extensively studied economic theories of many schools, including Physiocracy, classical political economy (Adam Smith, David Ricardo and Karl Marx, among others), neoclassical, Keynesian, post-Keynesian, Modern Monetary Theory and many others.

"He identifies himself as a Marxist economist, though his interpretation of Marx is almost unique to him and differs from other major Marxists."

 

[georgephillip]

That's exactly what the OP's article is doing. That's what "dollar hegemony" means.

It's just another regurgitation of old, leftist, anti-American claptrap that has been around for decades

How long do you expect the US military empire to survive?

"'A society becomes totalitarian when its structure becomes flagrantly artificial,' George Orwell wrote. 'That is when its ruling class has lost its function but succeeds in clinging to power by force or fraud.” Our elites have exhausted fraud. Force is all they have left.'"
The World to Come

 

[Rustic]

For decades the "deep states" of elite capitalist nations assumed the only threat to their continued economic pillage and plunder came from the political left.

And then came Trump.

"FEBRUARY 1, 2019
Trump’s Brilliant Strategy to Dismember U.S. Dollar Hegemony
by MICHAEL HUDSON

"The end of America’s unchallenged global economic dominance has arrived sooner than expected, thanks to the very same Neocons who gave the world the Iraq, Syria and the dirty wars in Latin America.

"Just as the Vietnam War drove the United States off gold by 1971, its violent regime change warfare against Venezuela and Syria – and threatening other countries with sanctions if they do not join this crusade – is driving European and other nations to create their alternative financial institutions..."

"The Neocons who Trump has appointed are accomplishing what seemed unthinkable not long ago: Driving China and Russia together – the great nightmare of Henry Kissinger and Zbigniew Brzezinski.

"They also are driving Germany and other European countries into the Eurasian orbit, the 'Heartland' nightmare of Halford Mackinder a century ago.

"The root cause is clear: After the crescendo of pretenses and deceptions over Iraq, Libya and Syria, along with our absolution of the lawless regime of Saudi Arabia, foreign political leaders are coming to recognize what world-wide public opinion polls reported even before the Iraq/Iran-Contra boys turned their attention to the world’s largest oil reserves in Venezuela: The United States is now the greatest threat to peace on the planet."

 

[Rustic]

Can you imagine a day when the US will be on the receiving end of economic sanctions?

Exactly what many said when our GND exceeded our GNP.....~S~

Public debt is a major threat to the US economy, but we have seen worse and survived:

Because we PAID THEM DOWN with big taxes and 5% annual GDP growth.

We now have more tax cuts than ever and can't break 3%

More taxes always equal a worse GDP....

 

[AntonToo]

Can you imagine a day when the US will be on the receiving end of economic sanctions?

Exactly what many said when our GND exceeded our GNP.....~S~

Public debt is a major threat to the US economy, but we have seen worse and survived:

Because we PAID THEM DOWN with big taxes and 5% annual GDP growth.

We now have more tax cuts than ever and can't break 3%

More taxes always equal a worse GDP....

If that was actually true we would set taxes at zero and just run up the debt.

But of course it isn't true and when you chronically under-tax you will sooner or later shoot interest rates through the roof and default from there, making all that low-tax paying result in a HUGE long term economic contraction.

Thats where we are currently headed...though our clown POTUS has little concern because looking past his own nose is just not in his constitution.

Trump is reportedly not worried about a massive US debt crisis as he'll be out of office by then

 

[georgephillip]

For decades the "deep states" of elite capitalist nations assumed the only threat to their continued economic pillage and plunder came from the political left.

And then came Trump.

"FEBRUARY 1, 2019
Trump’s Brilliant Strategy to Dismember U.S. Dollar Hegemony
by MICHAEL HUDSON

"The end of America’s unchallenged global economic dominance has arrived sooner than expected, thanks to the very same Neocons who gave the world the Iraq, Syria and the dirty wars in Latin America.

"Just as the Vietnam War drove the United States off gold by 1971, its violent regime change warfare against Venezuela and Syria – and threatening other countries with sanctions if they do not join this crusade – is driving European and other nations to create their alternative financial institutions..."

"The Neocons who Trump has appointed are accomplishing what seemed unthinkable not long ago: Driving China and Russia together – the great nightmare of Henry Kissinger and Zbigniew Brzezinski.

"They also are driving Germany and other European countries into the Eurasian orbit, the 'Heartland' nightmare of Halford Mackinder a century ago.

"The root cause is clear: After the crescendo of pretenses and deceptions over Iraq, Libya and Syria, along with our absolution of the lawless regime of Saudi Arabia, foreign political leaders are coming to recognize what world-wide public opinion polls reported even before the Iraq/Iran-Contra boys turned their attention to the world’s largest oil reserves in Venezuela: The United States is now the greatest threat to peace on the planet."

If you understood geopolitics, russia and china arent being driven together. That's what you're told to believe on the surface. Inserting the vietnam war as a precursor to the death of the dollar is another laugher. That was all started with the creation of the fed in 1912/13 under wilson. The next currency reset will be worldwide in digital form.

If you understood geopolitics, russia and china arent being driven together. That's what you're told to believe on the surface

Can you imagine a day when the US will be on the receiving end of economic sanctions?

Trump’s Economic Sanctions Have Cost Venezuela About $6bn Since August 2017


"Since gaining control over the global reserve currency, first through the Bretton Woods agreement and later through the introduction of the Petrodollar, the U.S. has often used the platform as an economic weapon to cut off nations they do not agree with from having access to dollars and to banking systems.

"However beginning in 2016, first in China and then later in Russia, the two largest banking and energy economies have themselves already implemented their own alternatives to SWIFT, and thus have lessened the effects economic sanctions have had on their countries.

"Should Europe be able to both use the Euro as a primary trade payment currency, and also implement their own SWIFT alternative, the power Washington has over most of the world's monetary systems will have evaporated to the point where one day they themselves could become the victim of economic isolation, and where the dollar simply disappears as the accepted reserve currency."

End of dollar hegemony ramping up as Germany's Foreign Minister calls for independent EU alternative to SWIFT ~ Shotgun Economics

We can make anything we need right here and tell the world to go **** themselves. True story.

And then some!

We can make anything we need right here and tell the world to go **** themselves. True story.

And then some!

I suspect much of the world would find that encouraging, especially if the US gives up its power of unilateral economic sanctions:

End of dollar hegemony ramping up as Germany's Foreign Minister calls for independent EU alternative to SWIFT ~ Shotgun Economics

"Since gaining control over the global reserve currency, first through the Bretton Woods agreement and later through the introduction of the Petrodollar, the U.S. has often used the platform as an economic weapon to cut off nations they do not agree with from having access to dollars and to banking systems."

 

[Toro]

Who the hell is Michael Hudson? Democrats gave us the mess in Korea that remains unstable for more than a half century at a cost of around 50,000 lives lost in three years. Democrats gave us Vietnam and the insane strategy that could win every battle and still lose the freaking war. Bill Clinton bombed Yugoslavia when he was literally caught with his pants down and Barry Hussein destabilized Libya when it was no longer a threat.

Michael Hudson (economist) - Wikipedia

"Michael Hudson (born March 14, 1939) is an American economist, Professor of Economics at the University of Missouri–Kansas City and a researcher at the Levy Economics Institute at Bard College, former Wall Street analyst, political consultant, commentator and journalist.

"He is a contributor to The Hudson Report, a weekly economic and financial news podcast produced by Left Out. Paul Craig Roberts argues that he is the best contemporary economist.

"Hudson graduated from the University of Chicago(B.A., 1959) and New York University (MA, 1965, PhD, 1968) and worked as a balance of payment economist in Chase Manhattan Bank (1964–1968).

"He was assistant professor of economics at the New School for Social Research (1969–1972) and worked for various governmental and non-governmental organizations as an economic consultant (1980s–1990s).

"Hudson has extensively studied economic theories of many schools, including Physiocracy, classical political economy (Adam Smith, David Ricardo and Karl Marx, among others), neoclassical, Keynesian, post-Keynesian, Modern Monetary Theory and many others.

"He identifies himself as a Marxist economist, though his interpretation of Marx is almost unique to him and differs from other major Marxists."

IOW he discredits himself