It is the dollar-based global financial system that is the real source of America’s hegemonic power

Washington plans to defend the dollar

Four years ago BIS unveiled an innovation project aimed to create a cross-border central bank digital currency linking the central banks of China, Hong Kong, Thailand, UAE and (latterly) Saudi Arabia.

Just before the US election, the BIS unexpectedly pulled out

Trump repeated threats to impose “100% Tariffs” on countries trying to “replace the mighty U.S. Dollar” with new currencies or payments systems.

After all (as I have noted before),

https://www.ft.com/content/762c39ba-9cd2-4d97-af32-8f6f9f3bafae

it is the dollar-based global financial system that is the real source of America’s hegemonic power today, and which Washington wants to defend.

Gillian Tett Financial Times 22 February 2025

https://www.ft.com/content/bfafb8f7-bd1c-48bb-85f4-8ba25475c0a3


US President Donald Trump has threatened BRICS nations with 100% tariffs if they replace the US dollar as reserve currency.

The BRICS group consists primarily of Brazil, Russia, India, China and South Africa. 

https://englundmacro.blogspot.com/2025/01/trump-threatened-brics-with-100-tariffs.html


The end of the dollar’s exorbitant privilege

Former French finance minister (eventually president) Valéry Giscard d’Estaing bemoaned a US that took advantage of its privileged position as the world’s dominant reserve currency and drew freely on the rest of the world to support its over-extended standard of living. 

https://englundmacro.blogspot.com/2020/10/the-end-of-dollars-exorbitant-privilege.html


Det är dollarn bakom allt - Monetary Creation and Destruction del 5

https://englundmacro.blogspot.com/2025/02/det-ar-dollarn-bakom-allt-monetary.html


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