Global Plans to Replace the Dollar

Student Researchers:
Nicole Fletcher  (Sonoma State University)
Krystal Alexander  (Indian River State College)
Bridgette Grillo  (Sonoma State University)

Faculty Evaluators:
Ronald Lopez  (Sonoma State University)
Elliot D. Cohen  (Indian River State College)
Mickey Huff   (Diablo Valley College)


Nations have reached their limits to fund military adventures in the United States. At the meeting, in June 2009 in Ekaterinburg, Russia, world leaders such as Chinese President Hu Jintao, Russian President Dmitry Medvedev and other officials of the six-nation Shanghai Cooperation Organization took the first formal step to replace the dollar as world reserve currency. The United States has been denied admission to meetings. If world leaders happened, the dollar has plunged dramatically in value, the cost of imports, including oil, will star, and interest rates rise.

Foreigners see the International Monetary Fund (IMF), World Bank and World Trade Organization (WTO) as surrogates of Washington in a financial system supported by U.S. military bases and aircraft carriers in the world. But this military dominance is a vestige of an American empire is no longer able to govern for economic power. American military power is muscular, based more on nuclear weapons and long-distance air raids on that ground operations, which have become too politically unpopular to mount on any scale.

As Chris Hedges wrote in June 2009, "The architects of the new international exchange to realize that if they break the dollar, but also breaking the military dominance of the United States. Military spending in the United States can not be sustained without this cycle a heavy debt. The official defense budget of the United States for 2008 was 623 billion. The closest national military budget of China, 65 billion, according to the Central Agency Intelligence. "

To finance the permanent war economy, the U.S. was flooding the world with dollars. Foreigners turn the target of dollars in their central banks in the local currency. Central banks have a problem then. If a central bank does not spend money in the U.S., the rate of exchange against the dollar increases, penalizes exporters. This allowed the U.S. to print money without restraint, to buy imports and foreign companies to finance military expansion, and to ensure that foreign nations like China will continue to buy U. S. Treasury bills.

In July 2009, President Medvedev has shown his appeal for a supranational currency to replace the dollar, pulling money from his pocket a sample of a "world currency united future." The piece, labeled "Unity in diversity" was invented in Belgium and presented to heads of G8 delegations.

In September 2009, the United Nations Conference on Trade and Development has proposed creating a new artificial currency that would replace the dollar as reserve currency. The UN wants to redefine the Bretton Woods system of international exchange. Formation of this piece would be more money for revision since the Second World War. China is involved in business with Brazil and Malaysia to denominate their trade in Chinese yuan, while Russia promises to start trading in the ruble and local currencies.

In addition, nine Latin American countries agreed on the creation of a regional currency, sugar, in order to rationalize the use of U.S. dollar. The member countries of the Bolivarian Alternative for the Americas (ALBA), a left block created by Venezuelan President Hugo Chávez, met in Bolivia where he pledged to continue with a new currency for intra-regional. The sugar would be implemented from 2010 in nonpaper form. ALBA, Member States are Venezuela, Bolivia, Cuba, Ecuador, Nicaragua, Dominica, Saint Vincent and the Grenadines and Antigua and Barbuda.

Cycle to support a permanent war economy of the United States appears to be nearing completion. Once the dollar can not flood the central bank, and one buys U.S. Treasury, the American global military empire collapsed. The impact on daily life of the population of the United States could be severe.

Our authors predict that, in addition to high costs, states and cities will have their pension funds drained. The government will be forced to sell the infrastructure, including roads and transport, to private companies. People will be increasingly dependent on services that were formerly regulated privatized and subsidized. commercial and private property worth less than half its current value. The negative equity which already affects 25 percent of American homes is expanding to include almost all owners. It will be difficult to get loans and can not sell a property for less accepting massive losses. There will be block after block of empty shop windows and barricaded houses. Foreclosures are epidemic. There will be long lines at soup kitchens and many, many homeless.

   Updated by Michael Hudson 

Foreign countries are trying to create an international monetary system in which the economies of the central bank not to finance deficits in the U.S. Army. Currently, foreigners 'dollar' in the form of U.S. Treasury bonds to finance the deficit (mainly military) national budget of the United States, a deficit that is largely due to military spending.

Russia, China, India and Brazil took the lead to find another system. But almost no information on this system was available in the U.S. or the European press, with the exception of a short version of my article "de-dollarization" I published an editorial in the Financial Times of London.

Discussions on the creation of alternative monetary system are not public. I was invited to China to discuss my views with officials there and has taught at three universities, and was then asked to write my proposals to Prime Minister Wen Jiabao, pending another visit shortly time before meetings this year, including China, Russia, India and Brazil, Iran, in part as a visitor. All this signals that other countries are looking for an alternative. Now that the euro has fallen, there is currently little alternative to the dollar as reserve currency. This implies that there is no national currency, a stable store of value for international economies.

Meanwhile, fund managers in the United States are the first flight of the dollar in Brazil, China, and other "emerging market" countries. As it stands, these countries sell their assets and businesses for free-how dollars are spent to buy them end up in their central banks, to be recycled into U.S. Treasuries, or used to purchase debt euro sinking in value internationally.

The result of this conundrum is the pressure at the end of the war to "free movement of capital" and to introduce capital controls.

There was almost no discussion of my story or even print the same problem. U.S. and European media have ignored the proposal for a successful alternative to the status quo.

    Update Fred Weir

This story illustrates an aspect of research post-Soviet Russia for a spot in the order in the United States has led world, a position that reflects this country's own geopolitical interests separate and how it differs from the West in terms of history, culture and level of economic development. Russia inherited from the former Soviet Union close relations with many countries of the Union and the United States regarding rogue states, including Iran, Cuba and Venezuela. It continues to be a lot of official documents, public sympathy in the country and their opposition to the global U.S., although Moscow has no sense of grandiose anti-Western ideology, even practical purposes to mobilize an "alliance" that Russia would end.

Under the administration of George W. Bush, under pressure from Moscow, he felt what he saw as Western meddling in post-Soviet Russians what the term "near abroad." It took the form of "color revolutions" or what the Western media called pro-democracy uprisings in Georgia, Ukraine and Kyrgyzstan, which abolished the corrupt regimes, but Moscow and the environment focused on be much more explicit and active pro-Western. The Kremlin, rightly or wrongly, have interpreted these disturbances as the United States sponsored and orchestrated attempts to restructure the political loyalty of neighboring countries with which Russia has deep historical ties. Two of these new leaders of Georgia Mikheil Saakashvili and Ukrainian Viktor Yushchenko, sought to put their country on a fast track to join the North Atlantic Treaty Organization (NATO), a prospect that Russia would view with alarm Border panic. Another initiative of the Bush era which has generated intense hostility in Moscow was a strategic plan for missile interceptors in neighboring Poland station, associated radar in the Czech Republic. Russian military experts have supported these deployments were the beginning of a strategic process that could ultimately undermine the aging Russian nuclear deterrence of the Soviet era, which is the main priority of the national defense of Russia.

In response to these perceived threats, Russia seems to be some time out of his way to cultivate relationships with other countries that disagreed with the United States, which is the subject of this story. The Russians have also declared war games with Venezuela's navy in the Caribbean Sea, the resumption of nuclear bomber patrols of the Cold War along the coast of North America, and spoke of reviving the former Soviet airbases in Cuba

In the last year, with a substantial change in the priorities of foreign policy established by President Barack Obama, it was somewhat relaxed attitude towards Moscow. Obama has put aside the controversial plan to station anti-missile weapons in Poland, and implicitly removed from the agenda the issues of induction of Ukraine and Georgia into NATO. The so-called Obama "reset" of relations between Moscow and Washington appears to improve the prospects for cooperation, even on thorny issues like Iran, although it may be too early to draw definitive conclusions.


Sources:

Chris Hedges, "The American empire is in bankruptcy," June 15, 2009 Truthdig, http://www.truthdig.com/report/item/20090614_the_american_empire_is_bankrupt/.

Michael Hudson, "de-dollarization: the financial empire and military Dismantling of America, Ekaterinburg Turning Point", Global Research, June 13, 2009, http://www.globalresearch.ca/PrintArticle.php?articleId = 13969

Fred Weir, "Iran and Russia to Nip U. S. Global Dominance "Christian Science Monitor, June 16, 2009, http://www.csmonitor.com/2009/0616/p06s12-woeu.html.

Lyubov Pronin, "Medvedev Champion coin shows off new" world currency "to the G-8," Bloomberg July 10, 2009, http://www.bloomberg.com/apps/news?pid=20601087 & sid = aeFVNYQpByU4.

Edmund Conway, "the UN wants a new global currency to replace the dollar," Telegraph (UK) September 7, 2009, http://www.telegraph.co.uk/finance/currency/6152204/UN-wants-new- global currency to replace-dollar.html.

Jose Arturo Cardenas' leftist Latin American Tackle a new currency with dollars, "Agence France-Presse, October 16, 2009, http://www.google.com/hostednews/afp/article/ ALeqM5jisHEg79Cz8uRtYfZR6WK4JmWsIg.

See below for further references to articles I wrote on this subject.

Stories about the opening of Russia in Cuba and Venezuela:

http://www.csmonitor.com/World/Americas/2009/0910/p06s11-woam.html
http://www.csmonitor.com/World/Global-News/2009/0315/a-new-cuban-missile-crisis-russia-eyes-bomber-bases-in-latin-america
http://www.csmonitor.com/World/Americas/2008/1125/p01s01-woam.html
http://www.csmonitor.com/World/Europe/2008/0908/p01s06-woeu.html

Stories of Russia's relations with Iran:

http://www.csmonitor.com/World/Europe/2010/0521/Russia-sanctions-unlikely-to-delay-Iran-nuclear-power-plant
http://www.csmonitor.com/World/Global-News/2009/0921/secret-israeli-deal-to-stop-russian-s-300-missile-sale-to-iran
http://www.csmonitor.com/World/Europe/2009/0323/p06s01-woeu.html

Stories about Russian-American relations:

http://www.csmonitor.com/World/Europe/2010/0513/Leaked-Russian-document-Could-Medvedev-era-tilt-more-pro-West
http://www.csmonitor.com/World/Europe/2010/0504/NPT-Obama-reveals-size-of-US-nuclear-weapons-arsenal.-Will-Russia-respondhttp://www.csmonitor.com / World / Europe/2009/1028/p06s14-woeu.html
http://www.csmonitor.com/World/Europe/2010/0513/Leaked-Russian-document-Could-Medvedev-era-tilt-more-pro-West