What to make of de-Dollarization?

While most of us suspect that dedollarization is not something that The United States will ever allow to happen and that they will employ every coercive tactic at their disposal to prevent from happening. I'm not so sure. I mean, the trend of dedollarization has been edging along for a while now, more or less unopposed. Instinctively, I suspect that this has to do with the increasingly anational nature of power. Meaning, in the world today is no longer strictly nation based or interested in pursuing nationalistic goals.

Private sector power, the owners and controllers of global financialized capital are not limited by national borders or nationalistic, economic interests. And with financialization, the largest pool of capital in the world is already virtual. It exists in a monetary metaverse. In the post World War two era, the Bretton Woods era, The United States profited pretty much from all international trade because any country in the world that wanted to buy something from another country had to first buy American dollars in order to conduct their transaction. It's not a system that really makes sense to anyone except when you consider that at that time, during that era, The United States was the guarantor of security for international trade.

So dollarization almost represented a sort of fee paid to The United States for that security. Dedolarization then, is sort of an announcement to the world of the end of America's commitment to guaranteeing the security of international trade. It follows the logic of deglobalization. The US military will no longer protect other nation's commerce, and this retraction of American global policing of trade is a deliberate move as is the accompanying dedollarization in my opinion. The whole direction of the global economy is shifting from west to east, from the global North to the global South.

I've discussed this many times on my channel and talked about many of the reasons why this is happening, but the main dynamic to keep in your mind here is that the owners and controllers of global financialized capital, which let's just shorten to the OCGFC, they constitute the real and unrivaled unipolar power in the world today. They float above nations and above national borders. They are a nation unto themselves. So when they recognize that the global South has more robust economic potential than the global North, there's nothing to prevent them from ditching the old system and implementing a new one as long as it's their system that's being implemented And dollarization has not been particularly beneficial for the economies of the global South, which was part of the whole point. Dollarization was intended to be good for America.

But when other countries are forced to use the dollar when trading, importing, and exporting, but they are producing in their own currencies and they're selling in their own markets in their own currencies, any even slight fluctuation in the value of the dollar can cause severe damage to their economies, and the ability of those governments to regulate and manage their own economies is severely hindered when they are forced to trade in the dollar. Well, I would suggest that today, it is no longer desired to handicap the profitability of companies in the global South by keeping them locked into a dollarized system because the OCGFC holds significant stakes in companies around the world and in economies around the world. I've mentioned here before the study by the University of Zurich back in 2011 in which they found that less than 1% of the multinational companies in the world control over 40% of the wealth of the totality of companies on earth through shareholding networks. Now that has only increased in the decade or so since they did that study. I mean, have companies like BlackRock today or State Street or Vanguard, which control a vast sprawling global network of banks, businesses, and corporations.

Private sector power in 2023 constitutes the largest global empire the world has ever seen. Now I should explain that companies like BlackRock or Vanguard or State Street are asset management companies. It means they are managing the assets of the wealthy. So companies like BlackRock represent the first c in the OCGFC. They're the controllers of capital controlling on behalf of the o, the owners of capital.

So these companies are like, ministers in the empire of capital, serving the interests of the wealthy who themselves constitute sort of the collective emperor. So this I think is how we can try to understand the proposed creation by the BRICS nations of a new trading currency. It can essentially become a replication of the dollarization system, except this time it will be used to strengthen, multiple global South economies instead of the dollar system, which was intended to only benefit and strengthen the American economy. So I would also expect that we'll see accompanying trade security arrangements emerging from the BRICS nations and between the BRICS nations because what we're basically seeing is a geographic redirectioning of the Bretton Woods system in which the historic beneficiaries and victims of the Bretton Woods system will trade places. Now does that mean that US power is deteriorating?

Not at all. But US state power is increasingly subordinate to private sector power, and US state power is increasingly being used as an instrument in service to the empire of capital. And The US still is and will continue to be their most lethal weapon. So while it may sound good and positive to anyone in the global South to think about the global North and the global South essentially reversing their roles in the global economy. And while I think that many of our countries will materially benefit and improve as a result of this role reversal.

We have to be cognizant of the fact that the real unipolar power in the world is not changing. And I really think that we're gonna have to start wrapping our heads around the fact that the old paradigms of imperialism and state based power are no longer helpful for understanding global power dynamics. And thus, what independence and what sovereignty means today is not what they meant in the past. It's no longer going to be about overcoming, Western invasion and occupation. In 2023, it's about fortifying our countries and our economies from the abusive exploitative coercion of the a national wealthy elite, the OCGFC, the Empire of Capital, which will continue if we are not vigilant to keep our nation's subject and will continue to suck money and resources out of our national control.