"Whoever controls oil controls all countries; whoever controls food controls humanity; whoever controls currency issuance controls the world."

< p> Kissinger, a well-known American politician, once said this.

Hello everyone, I am Jin Yu.

Judging from Kissinger’s remarks, let alone who controls oil and food, the existence of US dollar hegemony has almost given the United States the power to issue currency. It is no wonder that successive US presidents are keen to be " World Police”.

U.S. dollar hegemony actually means that the U.S. dollar occupies a leading position in the international monetary system. With U.S. dollar hegemony, the United States can impose sanctions on other countries at will, restrict other countries from using U.S. dollar transactions, etc.

< p> This will directly affect the international trade of other countries. So how was the hegemony of the US dollar established? The road to US dollar hegemony can be divided into two parts, one is the gold dollar system, and the other is the petrodollar system.

The US dollar gold system refers to the fact that after the end of World War II, the US dollar was directly linked to gold, that is, the US dollar was equal to gold. Gold has the advantage of being a hard currency and is less affected by leverage, so most countries want to reserve gold assets.

This also means that countries need to use U.S. dollars to exchange for gold. In this way, countries around the world cannot do without the U.S. dollar. So let’s take a look at how the U.S. dollar gold system was formed?

As we all know, since the birth of capitalism, Britain has become an empire on which the sun never sets. Britain has mined large amounts of gold in its colonies and other places.

Before World War II, the British gold reserve was as high as 12,000 tons, so before World War II, most trade in the world was settled in pounds.

After World War II, Britain was severely damaged by German aggression. Britain gradually declined and its gold reserves were greatly reduced. During World War II, European countries were in chaos, and the war also brought a lot of uncertainty to the value of the pound.

Therefore, countries do not dare to use pounds as a settlement currency. Instead, they use gold for settlement, further improving the status of gold.

Compared with the fierce fighting among the countries in Eurasia, the United States appears to be very peaceful on the other side of the ocean. The United States seized the opportunity at this critical moment to mass-produce military weapons and sell them to other countries.

During this war, the United States made another windfall. Since various countries used gold to purchase military weapons from the United States, a large amount of gold also flowed into the United States.

By 1948, the domestic gold reserves of the United States had reached 21,682 tons, which was more than the United Kingdom at its peak. The United States had three-quarters of the world's gold on hand at that time.

With its large gold assets, the United States held an international conference in 1994 to formally confirm the post-World War II international monetary system, also known as the Bretton Woods system.

At the meeting, the United States proposed that the U.S. dollar should become an international currency. The currencies of various countries should be directly linked to the U.S. dollar, and the U.S. dollar should be directly linked to gold. The ratio of the U.S. dollar to gold is fixed.

At the same time, a stable exchange rate system was also established. The exchange rate fluctuation of each country's currency against the US dollar should not exceed 1%, and the US dollar gold system was officially established. What the United States did not expect was that the Bretton Woods system collapsed in 1971.

Why did the US dollar gold system collapse? The main reason is the proliferation of U.S. dollars, which is directly linked to gold. This also means that the amount of U.S. dollars must be determined according to the amount of gold. However, the United States then began to print dollars frantically.

At that time, the United States printed dollars was different from now. The United States printed dollars mainly to assist other countries, because the United States was less affected by World War II, its economy has developed rapidly, and there are a large number of domestic products that are being purchased. How to sell it? At this time, the United States thought of a way.

The United States' provision of aid to other countries can increase the consumption power of other countries. In this way, countries use U.S. dollars to import a large amount of goods from the United States. In the end, the U.S. dollars return to the pockets of the United States, and the U.S. dollar can achieve globalization.

At that time, because various countries were busy with economic recovery, they did not directly exchange these US dollars for gold. They still hoped to put US dollars into the market to promote national economic development. Therefore, in this way, Various countries have simply not discovered that the amount of U.S. dollars printed is not equivalent to the amount of gold stored.

The U.S.’s printing of large amounts of U.S. dollars will inevitably cause the U.S. dollar to depreciate. After the U.S.’s crazy release of water, various countries began to realize that something was wrong.

There are many countries in the world that want to convert the money on hand into gold. However, since the ratio of U.S. dollars to gold was fixed when the Bretton Woods system was established, the United States simply cannot afford that amount now. Give more gold to all the countries in the world.

In the end, a credit crisis broke out in the US dollar, and the Bretton Woods system collapsed completely. Countries no longer use the U.S. dollar, which has led to extreme chaos in the foreign exchange market.

It was not until 1974 that the U.S. dollar oil system was formally established, and the U.S. dollar once again established its dominance.

Currency dominance is mainly determined based on a country’s comprehensive strength. Although the U.S. dollar gold system has collapsed, the United States’ comprehensive strength has not changed. The United States is still a superpower, and the United States will naturally not give up its dominance of the U.S. dollar.

So the United States seized on the 4th Middle East War. The 4th Middle East War caused the price of oil to skyrocket. Oil is an indispensable energy source for all countries, which in turn led to a rapid increase in the production costs of various countries, and subsequently triggered an economic crisis. , the United States turned its attention to oil at this time.

The United States is also an oil-producing country, but a single country does not have that much oil, so it found Saudi Arabia.

The United States expressed its willingness to provide assistance to Saudi Arabia, but Saudi Arabia’s foreign oil export trade must be settled in U.S. dollars. In this way, countries must have U.S. dollars if they want to purchase oil. In order to import oil, countries will naturally Increase U.S. dollar foreign exchange reserves.

In order to import oil, countries around the world cannot do without the U.S. dollar. Eventually, the petrodollar system was formally established and the U.S. dollar reaffirmed its hegemony. For many years, the U.S. dollar has been occupying a leading position in the international monetary system.

The U.S. dollar relies on Saudi Arabia to establish the U.S. dollar oil system. Naturally, some countries want to break through this system. The U.S. dollar has already experienced a credit crisis before. Unless countries in the world wanted to buy oil, they would not reserve U.S. dollar assets.

Countries will naturally buy U.S. Treasury bonds for U.S. dollar assets, but does the United States have the money to repay it? This still leaves a big question mark.

Since the U.S. dollar is a U.S. dollar hegemony established by relying on oil, then as long as countries around the world do not use U.S. dollars for settlement, they can crush the U.S. dollar hegemonic system. If you think so at this time, it is too simple.

At that time, Saddam Hussein announced that Iraq’s oil trade would not be settled in U.S. dollars, but in Euros.

This directly seized the "lifeblood" of the United States. The United States launched a war against Iraq on the grounds that Iraq possessed a large number of weapons of destruction. In the end, the Iraq War broke out, and Iraq was mired in war for many years.

In order to prevent the country from disappearing, the Iraqi interim government quickly announced that it would change the settlement of oil trade in euros to US dollars. In the end, countries around the world compromised on the hegemony of the US dollar, and the US dollar gradually became the first currency.

Because the U.S. dollar is the world’s currency and occupies a leading position in the monetary system, most international trade transactions rely on U.S. dollars for settlement.

Therefore, the United States can also use the hegemony of the US dollar to sanction other countries and restrict other countries from engaging in international trade.

In today's era of economic globalization, if there is no way to trade with other countries because of the inability to use US dollars for settlement, it is conceivable how serious the country's losses will be, and the economy of the sanctioned country will inevitably suffer a major blow.

Recently, Biden has launched multiple rounds of economic stimulus plans after taking office. Biden's large-scale release has made countries around the world very worried.

On the evening of January 14, Biden announced that he would take office, and then immediately launched the first round of economic stimulus plan, which amounted to US$1.9 trillion, mainly used to fight the epidemic, provide aid, etc.

Affected by the epidemic, economic development in the United States is not optimistic. So where will this huge sum of money come from? It's very simple, get this money by raising tariffs and continuing to issue bonds.

The U.S.'s lending money around the world is actually borrowing money from countries around the world to stimulate U.S. economic development. In the final analysis, it is harvesting the world's wealth to support U.S. development.

crisis.

It was thought that inflation could be avoided through this method, but Turkey's interest rate hike also had a certain impact on the exchange rate of Turkey's local currency, the lira, against the US dollar.

After Turkey raised its benchmark interest rate from 17% to 19%, the lira's exchange rate against the US dollar fell by 17%, which is equivalent to Turkey's assets having been shrinking.

To solve this problem, countries can only continue to print money to maintain exchange rate stability. In this way, there will be more currency circulating in the market, and an inflation crisis will naturally break out.

What is even more worrying is that as the U.S. economy improves and the U.S. releases water to a certain limit, it will adopt a tightening fiscal policy and quickly use various means to restore the dollar's balance in the world. Back home, the economic prosperity of other countries is just an illusion.

Affected by this, many countries such as Russia have experienced rising prices. Brazil has declared bankruptcy many times because it does not have sufficient funds to repay its foreign debts.

Biden has launched multiple multi-billion dollar plans that have affected many countries. If the U.S. dollar continues to be harvested around the world, the economic crisis in various countries will become larger and larger.

From ancient times to the present, the hegemony of the US dollar is only one of the financial weapons of the United States. The United States also has various rating and credit agencies. Combined, the United States has the ability to control the entire international financial market.

It can be said that the rules of the international financial market are determined and maintained by the United States. In this way, other countries live under the U.S. dollar financial system, and the United States can use the U.S. dollar at will. Hegemons wage financial war against other countries.

It is normal for the United States to take advantage of the hegemony of the US dollar and use various means to harvest money in the world.

Let me give you a few examples.

More recently, as early as 2019, international rating companies such as Fitch suddenly downgraded Greece's national debt ratings, causing countries around the world to sell Greek government bonds in order to avoid risks.

Many investors evacuated the Greek financial system in an emergency. This turmoil also spread to the entire European region, causing the euro to depreciate. Subsequently, the foreign exchange reserves of European countries were rapidly lost. In this way, the United States weakened the euro strength.

Earlier, after the end of World War II, Japan had the support of the United States, its economy developed rapidly, and its manufacturing industry rose rapidly. After the people gained a large amount of wealth, they invested it in stocks or other industries. The real estate market eventually led to a bubble economy.

The United States causes the dollar to depreciate by manipulating the exchange rate. As a result, Japan's domestic currency will rapidly appreciate, causing a major blow to Japan's manufacturing industry.

Then, in order to stimulate domestic economic development, the Japanese government could only continue to lower the loan threshold and encourage people to borrow more money to invest in the economy. This eventually led to the complete bursting of the Japanese bubble economy and the collapse of the Japanese financial system by the United States.

If you say which country has been persecuted the most by the US dollar, you have to mention Libya. As early as 2011, the multinational coalition entered Libya under the guise of protecting humanitarianism, but in fact it was to seize oil resources.

Although Libya has a small territory, it is rich in oil resources. Libya once made a lot of wealth through oil trade.

The United States is a US dollar hegemonic system built on oil. If Libya does not use US dollars for settlement, the US dollar oil hegemony system will be greatly impacted. Naturally, the United States cannot allow Libya to take such actions.

Therefore, the United States directly suppressed the price of Libyan oil through military invasion. Affected by this, the price of Libyan oil will naturally fluctuate.

In the end, under the pressure of the United States, most of Libya's domestic crude oil was privatized. The so-called privatization was not controlled by the Libyan people, but most of it was controlled by foreigners.

In the end, Libya's oil resources were divided up by Western countries led by the United States. There was very little left, and economic development never recovered.

Analysts have long pointed out that the United States is targeting Libya at this time not only because Libya wants to get rid of dollar settlements, but also because of China.

At that time, there were a large number of Chinese working in various fields such as oil mining in Libyan cities, and 11% of Libya’s oil exports entered the Chinese market.

The United States is even more worried that as China cooperates more and more with Libya, Libya will eventually unite with China to jointly resist the hegemony of the US dollar. Obviously, as long as the United States can control all Libyan oil resources, then the US dollar will The oil system will not collapse.

It is obvious that the United States has been pursuing this dollar-first strategy that has harmed the interests of other countries. This move is eroding the credit of the dollar, which means that countries around the world are bound to take all measures to accelerate de-dollarization. The trend towards de-dollarization is unstoppable.

China has been targeted by the United States in recent years. The United States may also use the hegemony of the US dollar to curb China's development. So, can the RMB launch a counterattack? The answer is absolutely yes.

First of all, the reason why the U.S. dollar can determine its hegemony is that all countries in the world use U.S. dollars for settlement. If countries around the world can reduce the use of U.S. dollars for settlement, then the hegemony of the U.S. dollar will naturally be affected to a certain extent.

In fact, there is no requirement that trade between countries must be settled in US dollars. If the trading parties can reach an agreement to use their own currencies for settlement, then they can also bypass US dollar settlement, which naturally does not need to be done. Subject to USD restrictions.

Russia is well aware of this truth. When Russia was sanctioned by the United States, Russia successively sold off U.S. dollar assets and reduced the use of U.S. dollars for settlement. Most of Russia's trade with European countries was settled in Euros.

Russia is gradually getting rid of the US dollar settlement system, which will help get rid of US sanctions.

China can also take measures to accelerate de-dollarization like Russia. Another way is to promote the internationalization of the RMB. If the RMB wants to really break through the limitations of the US dollar hegemony system, then the RMB must go international.

Since the United States has always prioritized the U.S. dollar, the credibility of the U.S. dollar has been reduced. In addition, the Biden administration has continued to release money, and countries have less and less trust in the U.S. dollar. This will create opportunities for the RMB. Coming.

China must give full play to its advantages as a major country, actively cooperate with other countries, and use more RMB settlement to promote the scope of RMB settlement during the cooperation process.

In order to break the US dollar hegemony system, China has also made a lot of efforts.

As early as 2015, China signed an energy agreement with Russia, which clearly stipulated that energy trade between China and Russia would be settled in RMB.

China’s Shanghai Crude Oil Futures Exchange was officially established in 2018. China took this opportunity to expand its RMB pricing power and actively use RMB settlement with Middle Eastern countries. Last year, Shanghai crude oil futures trading volume increased by 20% compared with the same period last year. %.

In addition, in March this year, China signed a cooperation agreement with Iran. The cooperation agreement mentioned that in the future, trade between China and Iran will be settled more in RMB, which can bypass the U.S. dollar. .

It can be seen from this that more and more countries are breaking through the hegemony of the US dollar. China's current promotion of RMB internationalization is following the path of the United States, but at the same time, it has also learned certain lessons.

However, it must be noted that China’s promotion of RMB internationalization is not to establish RMB hegemony and sanction other countries like the United States.

Rather, it hopes to provide more possibilities for the settlement of trade transactions with other countries and prevent the United States from frequently using dollar hegemony to sanction other countries.

In addition to the above-mentioned methods, China actually has a "trump card", and this "trump card" is the launch of digital renminbi.

China has been building a digital currency payment system in recent years. Once countries around the world use digital currencies for settlement with China, this will have a great impact on the hegemony of the US dollar.

Compared with physical currency, digital currency will be more stable. At the same time, it will be easier for the country to manage, and the value of the RMB will be more stable.

In addition, China is at the forefront of the world in the field of digital currency, and China has seized opportunities for development.

The declining credibility of the US dollar has also brought opportunities for the launch of digital renminbi. China is currently accelerating the creation of digital currency projects with many countries such as Indonesia. China will definitely seize this opportunity and launch a digital renminbi, allowing China’s renminbi to completely go global.

As for how to end the hegemony of the US dollar, it must be difficult to rely on China alone. However, professionals have long proposed the following methods. Here is a summary for everyone.

First, reduce the use of US dollars for settlement and introduce more regional currencies like the euro. However, for now, it is difficult to establish a regional currency like the euro due to the different monetary systems of various countries.

Or you can create a currency symbol with the same function, similar to virtual gold, etc. This currency symbol is recognized by all countries in the region and can be used to determine the exchange rate.

The second is to allow more sovereign currencies to become common currencies. The euro, Japanese yen, RMB, etc. are all currencies of sovereign countries. These currencies bear monetary responsibilities.

However, countries around the world do not recognize each other during the trade process, so more sovereign currencies can be introduced to give countries around the world more options for trade settlement.

These sovereign countries must improve their credibility and use their own currencies for settlement, so that a diversified currency system can be created.

The third is to create a cross-border payment and settlement system. The reason why people do not use gold for direct settlement is because it is very troublesome to carry gold for settlement.

In this way, the United States has established a U.S. dollar settlement system, so countries around the world should take action to establish a currency system that is different from U.S. dollar settlement, so that they can compete with the U.S. dollar in many aspects in the future.

The fourth is whether to accept overseas institutions or local currency accounts within the country. Take the RMB as an example. After the RMB flows out, it needs to flow back into China. Therefore, the local accounts of overseas institutions must be loosened as soon as possible, so that more overseas institutions can drive the return of local currency while conducting overseas trade.

Fifth, international financial institutions should be established to coordinate international trade settlement issues. International trade involves many issues such as exchange rates during the settlement process.

The two parties will inevitably have certain conflicts due to settlement issues, so international financial institutions must be established to mediate these disputes.

Sixth, maintain exchange rate stability and promote appreciation of the local currency.

If a country's exchange rate continues to fluctuate, it will have a greater impact on the country's financial system. This will make it difficult to gain the trust of other countries. Therefore, it is necessary to maintain a stable exchange rate and continuously promote the appreciation of the local currency.

Countries around the world have made many efforts to crush the hegemony of the U.S. dollar, but the U.S. dollar still occupies a dominant position, and continued efforts are needed to end the hegemony of the U.S. dollar.

The U.S. dollar accounts for 60% of global foreign exchange reserves. It can be seen that the U.S. dollar is still the main foreign exchange reserve of various countries in the world. Countries around the world still use US dollars for settlement, with a usage rate of 39.47%.

In addition, the dominance of the US dollar is also guaranteed by the US military, technology and many other forces. The United States has advantages in these aspects and can determine its status as world hegemon.

The United States can naturally guarantee the stability of the US dollar by relying on its own strength, so it is undeniable that international investors also use US dollar assets as their main investment.

Although countries around the world have launched a wave of de-dollarization, the US dollar still occupies a dominant position in the world with its many advantages. The US dollar has a solid foundation and is difficult to be shaken by other countries.

At present, the United States is like a bully. It takes advantage of other countries' desire to live a good life and continuously distributes fertilizers to China and other countries. After all the fruit trees bear fruit, The United States is carrying a big knife to harvest in China and other countries.

If any country does not succumb to the U.S. dollar, the United States will directly take out military weapons. In this way, the U.S. dollar will become the first currency, and it will harvest China by constantly printing money.

But these days will eventually end. Especially under the epidemic, China has become the only major economy in the world to achieve positive economic growth. China’s strength cannot be underestimated, and China will continue to play its role Role, work together with multiple economies around the world to break the hegemony as soon as possible and let the world have more choices!