ECONOMY Haberleri Tümü

Bell Tolls for the Reign of Dollar

The US Treasury Department and Central Bank show signs of war lobby. The American economy resembles a cancer patient going towards a terminal stage. The US would not keep its responsibilities unless it prints dollars and become indebted. Every printed dollar wears the US down, weakening the economy.

HASAN BÖGÜN

The US Treasury Department and Central Bank show signs of war lobby. The American economy resembles a cancer patient going towards a terminal stage. The US would not keep its responsibilities unless it prints dollars and become indebted. Every printed dollar wears the US down, weakening the economy. 

There are external effects to the disease. One of them is the rapid escape from dollar in the oil economy. Trading oil with dollar makes it a world currency. 

The disease is being provoked by Russia and China that have American treasury bill. 

Dünden devam edelim.

Escaping from dollar in oil trade

Trading oil with dollars has a long history. Saudi Arabia has an important role in it. It is the second biggest oil provider in the world, the leader of opec and Persian Gulf. Russia is the biggest energy provider. Russia is now trading oil and gas with ruble. China is the biggest energy buyer in the world. China buys oil and gas with yuan and other national currencies. China is the biggest buyer of Saudi oil. Saudi oil is traded mostly with other currencies. 

Iran and Venezuela withdraw in oil sales. BRİCS countries providing a forth of world energy trade oil with national currencies. 

Gold Reserves Increase

Russia had 150 billion dollars of American treasury bill in Oct, 2013. It decreaed down to 125 billion dollars in March, 2014. Russia got rid of 25 billion dollars American treasury bill in six months. 

China does the same. China had 1.32 trillion American treasury bill in Nov, 2013. It decreased down to 1.27 trillion in Mrach, 2014. Both Russia and China use bonds against the US. 

Central banks of leading countries, such as China, tend to turn their wealth into gold. Central banks had 30 tons of gold in 2008, now it has ireased up to 32 tons. Europe Central Bank has the most: 10.000 tons. China declares its gold stocks as 1054 tons. The American intelligence claims that China has 3000 tons of gold in real. 

As a result, dollar is becoming a less valuable money. In 2005, the wealth of the world was invested in dollar by 67%. It decreased down to 60%. 

SDR and Euro Preferences

What happens if dollar decreases? The US Treasury Department sees two options: International Money Fund (IMF) Speacial Dwaring Right SDR, Euro. Economists close to IMF, such as Eswar Prasad, discuss Chinese renminbi, which is the subject of another article. We will not go into that now. 

IMF prints world money in ten years if dollar decreases. The US plan is to make the US Central Bank and Treasury the savior of the IMF, so that the harm done to the US will spread to the world. Chinese pan to re-regulate the structure of IMF and save it from the US is about this plan. 

Euro option is about increasing the tension between the US and Russia and empowering NATO to control over European countries. Merkel and other European leaders approached warmly to the option that Putin stated: “Economic Area from Lisbon to Vladivostok.” Transatlantic Trade and Investment Union did not work out, either. Keeping Europe in axis is the life and death issue for the US, because it means to keep the second most powerful money in the world. 

We should look at all US politics from its fear of decreasing dollar. 

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