Story goes that King Fasial for Saudi Arabia wanted to abandon the dependency on the United States dollar and even go a step further and establish an Islamic lending institution in competition and in replacement of The IMF. He was assassinated.
Then we heard stories that Saddam Hussain rebelled against America along the same lines. He is no longer there. Then came Qaddafi. With open and overt defiance to the dollar and the entire American influence on the world trade. We haven’t heard from him lately either.
What is it about the dollar and it’s dominance that makes world leaders vanish overnight if they stand up against it ?
Well. In the world of money and finance. Dollar is king. And all of us the subjects under that king. Imagine the subjects giving an open call to overthrow the king. What do you think the king would do ? Of course he would do what kings usually do when there is a rebellion. The crush it. But kings have also known to be overthrown IF and ONLY IF, the rebellion is so huge that the majority wants the king to be ousted.
Now apply the same theory to money. Dollar bring the king and the users of the dollar bring the subjects who are rebelling.
Why should any country’s currency be imposed upon other countries. Unless the country whose currency you are using is so strong that we have a logical reason to secure our transactions through that currency. Well, with $20 Trillion in Debt, America is nowhere close to being that security for others. Plus the dollar bill itself says, IN GOD WE TRUST, meaning there is no obligation of the United States Treasury to that legal tender. Even though the American constitution clearly states that THE STATE and THE RELIGION should be separated. But conveniently it never separates. The President and others take an oath on Bible when the assume office and the currency says In God We Trust.
How can one trust a currency that itself is backed a country that defies its own constitution.
It’s no longer necessary for the world nor does the world have any benefit to continue to trade in Dollars. On the contrary, in my view, most of the financial problems, debacles and crashes are caused because of our dependency on a currency that has nothing to do with the trade between two countries.
China wants to buy something from Russia and is paying in the currency of America. Does this logically make any sense ? Unless there is some benefit. There is none. None at all.
China and Russia, thus, have decided to trade in Ruble and Renminbi. The first sign of the imminent signs of dollars demise. Now Pakistan is beginning our trade with China in our own currencies.
Imagine 60 plus countries through Belt And Road initiative within the next 20 years not using the dollar at all. Imagine 70% Of world’s economy is within these 60 countries. Imagine what would happen to the night of the dollar in a few decades. Well even if you can’t imagine it will happen. It is happening. It will continue to happen.
Now you will understand why the world and specially America is so against a union, an economic union called CPEC or The BRI.
Well good times are ahead. And those good times can only come when undue dominance of the dollar is no longer present in the world of trade and finance. And that undue dominance is seeing its natural death. Not tomorrow. Not next week. But it has started. And once a process of a currency’s demise starts, few centuries later people do not even remember the name of that currency.
Do you even remember or know what was the currency of the Roman or the Byzantine or even the Ottoman empires ? Well. That’s your answer.
Author: Mir Mohammad AliKhan