https://www.facebook.com/agenciassfas/posts/1661879220678007
COMMENT ON TIME
CUBA, THE DOLLAR, THE UNITED STATES AND THE WORLD (II)
By Teodoro Renteria Arróyave
These collaborations are published from Monday to Friday, however it is never too late to congratulate the PARENTS, whose Day was celebrated yesterday; On social networks, in addition to thanking the congratulations received, send reciprocals to all fellow DADS. Now I add the everlasting memories to our progenitors who rest in theeternal ether. Amen.
SECOND PART
We have already established that Cuba temporarily suspended deposits in US dollars as a defensive monetary measure against the economic aggressions of the United States government that do not cease despite the change in the White House with Joe Biden, who has ignored not complied with his campaign promises.
Now, continuing with the article by the renowned colleague Luis Manuel Arce Isaac, who is also the director in Mexico of the Prensa Latina News agency, which we interrupted due to the murders of two fellow journalists, in this part he analyzes how favorable other currencies exist. that compete with the Yankee currency. So it continues:
“The emergence of the euro was largely a result of that situation, but the United States persists in that strategy, and its allies in Europe perceive the danger that a deliberate handling of the dollar in the money market represents for the stability of their currencies, and also they have lost confidence in the greenback. It is not new. The important thing is that in Germany and other countries they continue to think this way.
Russia and China have already chosen to get rid of the US currency even though Beijing is the great international reservoir of the dollar and that matches it quite a bit in its permanent battle with the US Federal Reserve in its eagerness to subject the yuan or renmimbi to its dictates. Moscow, it seems, is more determined than Beijing to remove the greenback from its accounts.
Deep down – and that is known to Biden – is that the US dollar is losing steam as the world’s reserve currency, and for many specialists he is terminally ill, which does not mean that he will die tomorrow or that he is already in intensive care. On the contrary, it still retains more than 45 percent of representation of world GDP.
But they already feel the heat of the fire in the financial prairie, especially due to the rapid economic expansion of China which, together with Russia, is gradually forging, but in a sustained way, the support in tangible values for the emergence of a new international monetary and financial system in which the dollar is not the determining factor.
The great danger in all this is that the US currency cannot fulfill the mission – which it assumed when the theoretically extinct Breton Woods Agreement displaced the British pound as a universal currency – of being the guarantor of a stable system that will prevent trade wars and conjure dangers to peace, and yet he clings to continuing to lead it.
On the contrary, the White House is the provocateur of those wars as it does against the yuan and even against the euro. But it is no longer like then when the rest of the world’s hard currencies, of friendly or enemy governments, had to pass under the caudine gallows of the FED, which in some way moved the parity of all of them at their convenience.
This is a reflection of another reality: the United States is no longer the all-embracing industrial and financial power, even with its enormous productive capacity, and for the first time it is showing its skinny legs in the face of emerging powers such as China. Now they long for those gold reserves that protected their currency until August 15, 1971 when President Richard Nixon withdrew that support.
The gold safeguard allowed them the luxury of weathering industrial and commercial crises without much impact on the dollar, but that was over, and that is why the Covid-19 pandemic with the consequent paralysis of production, did them so much damage.
According to some calculations, in the 50 years since Nixon removed its gold backing, the dollar has lost more than 85 times its nominal or exchange value, so it is not surprising that many countries in the world seek to disengage from the greenback, and they see in China, Russia and even in the euro, more confidence than in the North American sign.
Now that the members of the Group of 7 have just celebrated their last summit in Cornwall, United Kingdom, it is appropriate to remember that this conglomerate of omnipresents has also lost a lot of steam and is currently just a grid, albeit a very important one, of a plane broader than is the G-20. TO BE CONTINUE.
