For decades, the US dollar has dominated global trade and finance. This supremacy, however, is not only economic: it is sustained by the political-military power of the United States and by a series of international agreements and pressures that have effectively 'forced' the rest of the world to accept the American currency as the main means of payment. Over time, some have called it a veritable 'great robbery', carried out thanks to the ability of the United States to issue dollars no longer guaranteed by gold, but defended by its status as a superpower.<\/em> \"Allow me to issue and control the money of a nation, and I will no longer care who makes the laws.\"<\/strong> \"The dollar is our currency, but it is your problem.\"<\/strong> \"Dollar dominance is a form of hidden tax that the rest of the world pays to the United States.\"<\/strong> The great empires of the past were based on two pillars: military might and a currency recognised by all.\"<\/strong> Towards the end of World War II, the major victorious powers met at Bretton Woods, in the United States, to establish a new international currency system. It was decided that the dollar would be at the centre of this system, convertible into gold at a fixed rate of $35 an ounce. The US gold reserves, which were very substantial, made this guarantee reliable.<\/p>\n Over the years, the United States printed more dollars than its gold reserves warranted, aided by military spending (Vietnam War) and other wasteful economic policies. When some countries (notably De Gaulle's France) began to effectively demand conversion to gold, the US found itself in trouble. In 1971, President Richard Nixon unilaterally declared an end to dollar-gold convertibility: the 'Nixon Shock'<\/em>. From that moment on, the dollar no longer had a real gold standard, but continued to circulate as the world's reference currency.<\/p>\n Why did the world accept the dollar anyway? The United States, the dominant military and economic power, made fundamental agreements with oil-producing countries (particularly Saudi Arabia) that oil would only be sold in dollars, laying the foundations of the so-called petrodollar<\/em>. Moreover, Europe and many other regions had (and still have) strong trade and strategic ties with the US, making the use of the greenback convenient - or inevitable.<\/p>\n When a nation can print the currency that the whole world uses, it enjoys an immense privilege: it can finance its debt and expenditure (including military) more easily. Many economists liken this dynamic to 'robbery' because the United States buys real goods (oil, mineral resources, technological products) in exchange for pieces of paper, i.e. the dollars they themselves issue, without the need to secure them with gold or other hedges of the real economy. This allowed the American nation to enrich itself disproportionately without guaranteeing anything.<\/p>\n Nations that use or accept dollars effectively support the US economy, as well as allowing the US to continue borrowing at relatively low cost. If a country wanted to break free from this 'cage', it would risk economic or geopolitical retaliation (sanctions, isolation, etc.) that the US can impose thanks to its military force, already used on numerous occasions (the US is by far the most warmongering country in the world) and its influence on the major international financial institutions.<\/p>\n The US has accumulated a huge public debt. As long as the dollar remains the global reserve currency, much of that debt is sustainable. But if other countries were to lose confidence in the dollar and reduce its use, the US would be exposed to a risk of inflation and higher interest rates, with serious repercussions for the domestic economy.<\/p>\n The BRICS group (Brazil, Russia, India, China, South Africa) is trying to develop alternative financial and trade circuits. China and Russia, in particular, have signed agreements to exchange raw materials in their national currencies, reducing the use of the dollar. Other countries, too, are at times showing interest in such alternatives, tired of being subjected to monetary policies decided in Washington.<\/p>\n In addition to the economic-financial dimension, the United States uses its political and military clout to ensure the centrality of the dollar. Some current events seem to reflect this desire to preserve primacy.<\/p>\n With the end of the USSR, many Eastern European countries came under the NATO-EU umbrella, moving closer to the US economic sphere of influence. Russia saw this expansion as a direct hostility to its borders. The conflict in Ukraine - which began in 2014 with the annexation of Crimea and then intensified in 2022 - is also a result of this tension. Keeping Europe firmly tied to the US (especially in energy and military matters) serves to preserve the dollar's supremacy in Western markets.<\/p>\n The US supports Israel regardless of the humanitarian costs of the Israeli-Palestinian conflict. Israel represents a Western garrison in the Middle East, a crucial area for the control of oil (and, consequently, of the petrodollar). Any downsizing of US influence in the Middle East - perhaps to the benefit of rival powers - would endanger the centrality of the dollar in the hydrocarbon trade.<\/p>\n Many Arab countries have historic agreements with the US whereby they sell their oil in dollars and receive protection and military supplies in return. However, unconditional US support for Israel creates tensions and pushes some Arab governments to look elsewhere (China, Russia) for alternatives, especially if this would allow them to reduce their dependence on the dollar.<\/p>\n In 2019, the Trump administration caused a stir with the idea of 'buying' Greenland, an autonomous Danish territory. This seemingly bizarre move could have an economic-strategic motivation: Greenland is rich in natural resources and, as the ice melts, new trade routes open up in the Arctic. Controlling or influencing those routes would mean imposing rules, standards and, potentially, currency for trade.<\/p>\n Trump has introduced very high duties (customs taxes) on several imported products, with the idea of reducing the trade deficit and protecting domestic industry. In a world where the US no longer wants to be so dependent on external resources, the leverage of duties also serves to discourage the entry of foreign goods and encourage domestic production.<\/p>\n Some economists believe Trump's move is related to the fear that, in the long run, the excess dollars printed and distributed around the world could become a weapon against the US itself (for example, if rival nations decide to sell US government bonds en masse, lowering their value). Partially locking in or trying to reduce imports theoretically helps to reduce the currency's exposure to global market fluctuations.<\/p>\n The dollar's long hegemony is not only based on the strength of the US economy, but on a complex system of alliances, pressures and political and military interventions. Since the 'betrayal' of convertibility to gold in 1971, the dollar has rested on a 'forced' confidence that the US has been able to nurture thanks to:<\/p>\n Military power<\/strong>the ability to intervene or intimidate, directly or indirectly, in any part of the world.<\/p>\n<\/li>\n Strategic Agreements<\/strong>from oil sold in dollars (petrodollar) to agreements with NATO allies.<\/p>\n<\/li>\n Market inertia<\/strong>Once the dollar has established itself as the main currency, changing it entails enormous costs and uncertainties for many countries.<\/p>\n<\/li>\n<\/ol>\n At the same time, events such as NATO's eastward expansion, the war in Ukraine, support for Israel, the rise of the BRICS, and even interest in distant regions such as Greenland suggest that the US is doing everything to preserve - or expand - its sphere of influence. Not only military but also financial primacy is at stake: if the dollar loses its status as global reserve currency, the US would face serious debt and budget problems.<\/p>\n Ultimately, the 'great robbery' of the dollar is not just a metaphor: it is the idea that a country can, in fact, continue to buy real assets and expand its debt by issuing currency no longer backed by gold, but backed by a supremacy defended at all costs. The world, meanwhile, is wondering: how much longer can the United States maintain this advantageous position? And if new powers and alliances (such as the BRICS) really succeed in creating efficient alternatives to the dollar, what economic and political scenarios await us? The next moves, by Washington and its rivals, will shape the future global balance and, with it, the lives of billions of people.<\/p>\n The financial stranglehold that has emerged around the dollar and the geopolitical pressures that accompany the current historical phase clearly show how a system based exclusively on power and profit interests has become unsustainable, both from a human and an environmental point of view. And yet, it is precisely in this critical scenario that the opportunity for a leap in awareness manifests itself: a collective consciousness-raising that invites us to rethink economic and social models no longer just on the level of convenience, but on that of the authentic common good.<\/p>\n It is a path that starts with the individual and branches out into the social fabric, giving rise to forms of cooperation based on dignity, respect and critical discernment. Only by rooting ourselves in solid ethical values can we counter the logic of profit at any cost and the systematic manipulation of information, generating concrete and easily replicable alternatives. Likewise, it is crucial for each of us to rediscover our individual responsibility in cultivating more empathic and horizontal relationships, so that communities of mutual support that look beyond the boundaries imposed by oligarchic interests can germinate.<\/p>\n This new way of understanding the economy invites one to recognise the centrality of inner growth and sincere sharing. In this sense, opening spaces for dialogue, disclosure and critical reflection becomes an act of resistance and, at the same time, a seed of rebirth. Transforming everyone's conscience into concrete strength means, in fact, beginning to realise, here and now, a more equitable and sustainable reality.<\/p>\n If the dollar is the economic face of US hegemony, war - or the constant threat of it - is the instrument that guarantees its supremacy. These are not two separate powers: US military dominance has created, protected and consolidated the global dollar system. From Iraq to Libya, from Yugoslavia to Afghanistan, every theatre of war has also had a monetary, energy or commercial implication. The Pentagon protects Wall Street; military bases guard the petrodollar system. This is how a currency, though not backed by anything tangible, continues to rule over everything.<\/em><\/p>\n Since 1776, the United States has known war almost continuously. No modern power has ever made such a systematic and multifaceted use of force: declared wars, proxy conflicts, covert operations, embargoes, sanctions that kill more than bombs. American 'peace' is, in reality, an imperial order maintained by armed threat.<\/em><\/p>\n This hegemonic vocation is not a recent drift, but is rooted in the very principle of their expansion. As historian David Stannard recalls, between 1500 and 1900 the indigenous population of North America grew from 12 million to 237,000. A progressive genocide that was the ideological and operational premise of the nascent empire.<\/em><\/p>\n And the dollar policy - understood as an instrument of global economic domination - is no exception: it is its direct extension, carried out with method, constancy and impunity.<\/em><\/p>\n The same paradigm is reflected within the country. American power is exercised not only outside, but also over its own people: a narrow elite rules with the passive consent of a vast middle class kept in relative comfort to neutralise dissent. As denounced by thinkers like Chomsky, Zinn and Hedges, American democracy is a formal representation, in the hands of oligarchies that use freedom as a fa\u00e7ade.<\/em><\/p>\n Imposition, control, supremacy: what the US practices in the world, it also exercises on its own citizens. Empire, before being geopolitical, is an inner habit of power. And the myth of freedom, like that of peace, reveals itself for what it is: an effective ideological construction.<\/em><\/p>","protected":false},"excerpt":{"rendered":" Introduzione Da decenni, il dollaro statunitense domina i commerci e la finanza globali. Questo primato, per\u00f2, non \u00e8 solo economico: \u00e8 sostenuto dal potere politico-militare degli Stati Uniti e da una serie di accordi e pressioni internazionali che hanno di fatto \u201ccostretto\u201d il resto del mondo ad accettare la moneta americana come principale strumento di […]<\/p>\n","protected":false},"author":1,"featured_media":316,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,23],"tags":[],"class_list":["post-314","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economia-e-giustizia","category-potere-e-tecnologie"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/diamantegrezzo.org\/en\/wp-json\/wp\/v2\/posts\/314","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/diamantegrezzo.org\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/diamantegrezzo.org\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/diamantegrezzo.org\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/diamantegrezzo.org\/en\/wp-json\/wp\/v2\/comments?post=314"}],"version-history":[{"count":13,"href":"https:\/\/diamantegrezzo.org\/en\/wp-json\/wp\/v2\/posts\/314\/revisions"}],"predecessor-version":[{"id":348,"href":"https:\/\/diamantegrezzo.org\/en\/wp-json\/wp\/v2\/posts\/314\/revisions\/348"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/diamantegrezzo.org\/en\/wp-json\/wp\/v2\/media\/316"}],"wp:attachment":[{"href":"https:\/\/diamantegrezzo.org\/en\/wp-json\/wp\/v2\/media?parent=314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/diamantegrezzo.org\/en\/wp-json\/wp\/v2\/categories?post=314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/diamantegrezzo.org\/en\/wp-json\/wp\/v2\/tags?post=314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
In recent years, moreover, the geopolitical landscape has begun to show more marked cracks and opposition: the conflict in Ukraine, NATO's eastward expansion, unconditional support for Israel and the growing strength of the BRICS are just a few examples of how the defence of dollar hegemony is intertwined with political and military issues. This article attempts to explain, with simple words but solid content, what has happened, how we got here and what risks and scenarios lie ahead.<\/em><\/p>\nQuotes<\/h3>\n
\n
- Mayer Amschel Rothschild, (c<\/em>itation not precise and unofficial, attributed to the founder of the Rothschild banking dynasty)<\/em><\/p>\n<\/blockquote>\n\n
- John Connally<\/em>, US Secretary of the Treasury (1971), addressed to the European allies after the exit from the Bretton Woods agreements<\/p>\n<\/blockquote>\n\n
- Val\u00e9ry Giscard d'Estaing<\/em>President of France (1974-1981)<\/p>\n<\/blockquote>\n\n
- Jacques Rueff<\/em>French economist, advisor to De Gaulle (one of the greatest critics of the petrodollar system)<\/p>\n<\/blockquote>\n
\nFrom its origins to the present day: how the dollar conquered the world<\/h2>\n
The Bretton Woods Agreement (1944)<\/h3>\n
The illusion of convertibility and Nixon's 'betrayal' (1971)<\/h3>\n
The 'petrodollar' and the continuity of hegemony<\/h3>\n
\nThe 'great robbery': why we talk about forced imposition<\/h2>\n
A unique advantage for the United States<\/h3>\n
The consequences for other countries<\/h3>\n
Current risks to the US economy and power<\/h2>\n
Rising debt and falling confidence<\/h3>\n
Growing alternatives: the BRICS and other regional arrangements<\/h3>\n
\nThe 'suspiciously' connected geopolitical elements<\/h2>\n
NATO's eastward expansion and the war in Ukraine<\/h3>\n
Unconditional support for Israel and tensions with Palestine<\/h3>\n
The uncertainty of Arab countries<\/h3>\n
The idea of annexing Greenland<\/h3>\n
\nThe Trump administration's 'exaggerated' duties<\/h2>\n
An attempt to rebalance the trade balance<\/h3>\n
The link with the 'no longer covered' dollar<\/h3>\n
\nConclusions<\/h2>\n
\n
\nClosing Special - American Hegemony, Between War and Money<\/strong><\/em><\/h3>\n