0 sats \ 0 replies \ @Solomonsatoshi 8 Oct \ on: Can America Survive Global De-Dollarization? econ
Unfortunately it appears very unlikely that USA can avert disaster.
The trend away from a productive economy toward a parasitic rentseeking fiat debt funded economy has been in view for over 5 decades.
At the same time China has emerged from the Chaos that resulted from The Opium Wars and achieved unprecedented economic growth driven by a strong centralised CCP strategy designed to restore China former glory as the most wealth nation on earth.
Today China has won the trade war- it produces manufactured goods at a lower cost more efficient rate than any other nation. Consequently it also has a strong influece on commodity prices and tends to dominate many commodity markets.
In short nearly every nation today needs to trade with China or suffer significant economic disadvantage. That includes the formerly great USA.
China has won the trade war and is building its Belt and Road global infrastructure network- and the tertiary layer of that empire is monetary payments and international standards protocols.
China has already built its CBDC Yuan, DCEP and this protocol is almost certain to be the new platform upon which international trade is settled.
China may not be as liked by some still wealthy western nations but they need to trade with China and as the USD reaches a tipping point where it is no longer seen as the strongest and most stable currency the transition could occur very swiftly.
Libertarians will struggle with this reality as China is an autocratic highly centralised economy- it will not compute for Libertarians that this could be taking place and they will cling to denial of the reality as it completely undercuts their flawed belief system.
State power and state power projection has always been a significant economic factor- and monetary hegemony beyond ones borders has always been an important strategic advantage that comes with gaining trade dominance.
The USA had such dominance post WW2- with more than half the planets manufacturing capacity.
Today China has that trade dominance which almost certainly leads to monetary hegemony.