Tuesday, March 10, 2015

Dollar Imperialism, 2015 Edition

Click here to access article by Michele Brand and Remy Herrera.

If you didn't find the above article sufficiently challenging, maybe this one will. Both are excellent attempts to explain the ill effects of the US dollar on the rest of the world. The authors conclude this rather lengthy essay with the following commentary:
With $5.7 trillion of dollar denominated debt, the BRICS still have a ways to go before liberating themselves fully from the dollar. If they enter into a full-fledged economic crisis (and Russia is already there), they could be forced to act more quickly toward creating a de-dollarized alternative financial sphere, in order to survive. This bipolar world, which seems likely, could at least offer some respite to those economies; however, if the world split into two rival spheres, it could lead to a new cold war – and possibly the risk of a new world war. A much preferable solution would certainly be the creation of a new global reserve currency – which would not replace national currencies but only take over the dollar’s unfair hegemonic role – managed by an international institution, whether a reformed IMF (if that’s possible) or another one which would be more “neutral” than such institutions are currently.

Liberating the world from the burden of the dollar, and from the hot and cold wars waged in its interest, will of course not relieve us from the world’s true, insidious disease: capitalism. But it would allow some breathing room necessary for alternative experiences working toward the socialization of the economy, toward socialism, to survive and hopefully thrive.