Tag Archives: dollar

What Became of the Dollar

09 Wednesday Apr 2025

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MOA offers a look, with analysis, of what passes for economics in the Trumpstein circus act.

Steve Miran is the Chairman of President Trump’s Council of Economic Advisors.

CEA Chairman Steve Miran Hudson Institute Event Remarks – The White House, Apr 7 2025

Today I’d like to discuss the United States’ provision of what economists call “global public goods,” for the entire world. First, the United States provides a security umbrella which has created the greatest era of peace mankind has ever known. Second, the U.S. provides the dollar and Treasury securities, reserve assets which make possible the global trading and financial system which has supported the greatest era of prosperity mankind has ever known.
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Let me clarify that by “reserve currency,” I mean all the international functions of the dollar—private savings and trade included. I’ve often used the example that when private agents in two separate foreign countries trade with each other, it’s typically denominated in dollars because of America’s status as the reserve provider. That trade entails savings housed in dollar securities, often Treasurys. As a result of all this, Americans have been paying for peace and prosperity not just for themselves, but for non-Americans too.
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I’m an economist and not a military strategist, so I’ll dwell more on trade than on defense, but the two are deeply connected. To see how it works, imagine two foreign nations, say China and Brazil, trading with each other. Neither country has a currency that is trusted, liquid, and convertible, which makes trading with each other challenging. However, because they can transact in U.S. dollars backed by U.S. Treasuries, they are able to trade freely with each other and prosper. Such trade can only occur because of U.S. military might ensuring our financial stability and the credibility of our borrowing. Our military and financial dominance cannot be taken for granted; and the Trump Administration is determined to preserve them.

From an economic standpoint the theory Miran describes is bonkers.

Bonkers is about the best Trumpstein and his clowns can offer. But this reinforces what I’ve been saying about GAE primacy post-WW2, based on dollars and bombs. And, of course, the idiot clown’s example is already two years into irrelevancy.

Elsewhere, Michael Hudson explains the underlying monetary problems of the GAE and the fact it is the (fake) private debts, not the gubmint IOUs that have destroyed the dollar. TRANSCRIPT

 

At First, Very Slowly, And Then…

17 Monday Jul 2023

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The USSA’s Dollar is a dead currency limping. It’s as dead as the heritage American nation. However, it’s full death and burial won’t happen instantly. Rather, it will be and is a slow process.

The de-dollarization of the global financial system will continue. This will be facilitated in particular by progress in financial technology. The development of automated trading platforms will reduce the cost of exchanging one currency for another. Central banks will seek to directly clear each other’s currencies without directly using the currencies of Western countries. In the future, central banks’ digital currencies may also be used for international transactions, reducing costs for economic agents. However, this process will be slow and we should not expect a fundamental change in the global financial system in the foreseeable future.

The new “Gold X” will be just what the doctor ordered for processing international transfers without kneeling and groveling before the wicked rulers of the GAE. It won’t happen overnight, but it will happen in the foreseeable future – if one can see a year or ten down the economic road. Most, of course, can’t. Most ‘Muricans won’t notice until the process is already over. By then, well, maybe another swell election will help?

The End of the Dollar

05 Wednesday Apr 2023

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Happened.

Past tense. READ THIS.

And what will be the consequences of this global event? Our friends at VisualCapitalist.com assert:

Despite these movements, few expect to see the end of the dollar’s global sovereign status anytime soon.

And they’re right. Very few experts expect to see the end of the dollar’s global sovereign status anytime soon. That’s because the majority of experts are too stupid to realize it’s already ended. The meat is already burned and they’re warning us that things might get medium-rare.

Again, and again and again, the debt situation could be rectified in three relatively easy steps. It will be, but in the US, because ‘Muricans are wicked and stupid, it won’t happen until after a nasty war.

Goodbye, Dollar

22 Wednesday Jun 2022

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Wow. A sovereign debtor nation deals appropriately with the modern day money changers.

Russian President Vladimir Putin signed a decree establishing a temporary procedure for payments of external foreign currency public debt on Wednesday.

This, just in time for the death of SWIFT.

Russian President Vladimir Putin said on Wednesday that banks from BRICS nations can freely connect to the System for Transfer of Financial Messages (SPFS), Russia’s alternative to SWIFT.

While addressing a BRICS business forum, Putin said that together with its BRICS partners – Brazil, India, China and South Africa – Russia is developing reliable alternatives for international payments.

“The Russian system for transmitting financial messages is open to connecting banks from the five countries,” he said, adding: “The geography of the use of the Russian payment system Mir is expanding.”

Over 400 Russian and Chinese banks are already linked together. More banks and more countries will join the new, honest system as SWIFT dies. For those in the WereWest looking for a link to the financial future, Russia is almost closed-off for now. Third-tier Chinese banks (Alipay) are a possibility. Also think about institutions that are still part of SWIFT but which are likely to make the jump in a year or three. Israel and Japan come to mind.

This is great news for everyone (except the usual suspects), even for stupid Amerikans too dumb to understand where they are, what they’ve lost, and what they have to gain. Nationalist economics is the future!