De-dollarization

Many analysts

Whether aligned or not with the United States and Europe, believe that the financial, economic and commercial wars that Washington publicly declares against China, Russia and Iran have united these three nations in a strategic alliance with the intention of preventing the sanctions and conflicts promoted by the U. S. Senate, the White House and the European Union from deterring themselves for the benefit of their own internal dynamics.

In 2009, Russia brought together BRIC countries (without South Africa at the time) and the Shanghai Cooperation Organization, including China, Kazakhstan, Tajikistan, Kyrgyzstan and Uzbekistan, to assess possible mechanisms to eliminate the dollar as a reference currency in commercial transactions, a hard blow to U. S. hegemony based on military might and the financial system whose center is located in Wall Street offices in New York.

That meeting was not attended by US diplomatic representatives: they were not allowed to attend, they received a resounding no.

That was a turning point whose results we see today in the process of de-dollarization that has been developing in recent years in these countries. Cooperation and not submission to the globalist american-european project is the area where a new financial architecture is developed, promoted mainly by China and Russia.

The gold standard strikes again

Among the Bretton Woods agreements in 1944

A year before the end of the great war against fascism in Europe and Russia, the convertibility of the gold dollar was broken as a contract by the financial policy of Richard Nixon in 1971, whose main promoter was David Rockefeller of the Chase Manhattan Bank and the neoliberal strategist Milton Friedman.

The excuse for ending the gold standard was the excessive dollar issuance that the US Federal Reserve could not bear in the form of gold bullion. This unilateral decision had repercussions in such a way that the financial world now justified financial speculation (and not production and trade) as the main source of capitalist accumulation. As the financialization of the economic system deepened worldwide with globalization, whose ecstasy was experienced during the years after the dissolution of the Soviet Union, the United States reinforced its role as a "free world leader" with the dollar as its main asset in the world's economic and financial dynamics.

This greatly benefited U. S. finances, whose principal entities began to issue dollar-denominated debt to almost everyone (literally) without a roof over their heads.

Qiao Ling, the largest general of influence in the Chinese army, explains:"The United States avoided high inflation by allowing the dollar to circulate globally. You also need to restrict the printing of dollars to avoid a devaluation of the dollar. So what do you do when you run out of dollars? The Americans had a solution: to issue debt to repay the dollar to the United States. Americans began playing a game of printing money with one hand and lending it with the other. Printing money can make money. Lending money can also make money. This financial economy (using money to make money) is much easier than the real (industry-based) economy.

That's why, in a world in which stock markets, bonds and interest rates are mechanisms of this increasingly manipulated financial architecture for the benefit of a dollar economy based on speculation. It's a strategy of financial warfare by the US against the rest of the world.

Understood gold as a historical resource to measure the value (of exchange) of goods, a definite standard, Russia and China have bought tons of precious ore in order to build a new system based on the convertibility of gold coins. These two countries started trading in gold recently, and according to economist and geopolitical analyst Peter Koening, the ruble and the yuan are currently gold-backed currencies, which is a first and important step on the road to global de-dollarization, as China has become the world's leading economy.

In addition to the growing gold reserves of China and Russia, Mexican academician Alfredo Jalife presents interesting data:"According to the China Gold Association, the countries that are part of the new Silk Road hold reserves for 23,600 tons: 42 percent of the world total! What's more, the OBOR countries produce 1,150 tons per year: 36 percent of the global total! At this rate, only outside of China is it estimated that the OBOR countries will exceed the United States by five to 10 years, which will cause a global monetary shock.

Iran has joined Russia and China in this process of de-dollarization

The strategic alliance

Carried out by these three powers has a definite form in the so-called Belt and Route Initiative. The three countries are fundamental axes in this now transcontinental project, which includes infrastructures, commercial and cultural interconnectivity and large investments with alternative financial institutions to the International Monetary Fund and the World Bank.

Iran, in fact, completed its definitive de-dollarization a couple of years ago due to US sanctions on Iran's finances and the entire economy. The abandonment of the dollar in its transactions has formalized an independence in monetary reserves and in commercial and financial mobility that makes easier the exchange that is intended with the New Silk Roads as the center of Eurasia's economic dynamics. In addition, Iran, like China and Russia, has been basing its reserves on gold and the dirham of the United Arab Emirates since 2014. The departure of the dollarized yoke has allowed this country to reaffirm itself as a regional power in the Middle East, that is not in dispute.

De-dollarization is a far-reaching project, which includes geopolitical actors of great weight in the world, based on a financial economy different from the unstable speculation that includes the dollar instrumentalized by Wall Street elites and company.