Wednesday, January 28, 2015

The 4th Media » War and Dollar: To Protect US Dollar, The FRB, US Bankers Prepare for a Major War

Although many funerals have been held for the US dollar, still it lives on. On the eve of the collapse of the Bretton Woods currency system, the dollar made up almost 80% of global foreign-exchange reserves (in 1970 it totaled 77.2%, and in 1972 – 78.6%).

Then, after the transition to the system negotiated at the 1976 Jamaica Conference, that percentage gradually declined, reaching its lowest level – 59.0% – in 1995.

In the wake of financial globalization, the dollar’s positions strengthened again (reaching 70-71% between 1999 and 2001), but then a new decline was seen in the dollar component of global foreign-exchange reserves – dropping below 61% in 2014. Nevertheless, it is still higher than in 1995.

According to the Bank for International Settlements, in April 2010, 84.9% of global foreign-exchange market transactions were carried out in dollars, a figure that had increased to 87% by April 2013.

For comparison, the percentage of those transactions conducted in euros during that same period fell from 39.1 to 33.4%. The discrepancy between the positions of the dollar in world finance vs. the US positions in the global economy cannot be overlooked.

The US share of world GDP is currently about 20%. China has already surpassed America in terms of GDP (based on the purchasing power parity of the currency), but in the global currency market, only 2.2% of transactions were carried out in yuan in April 2013.

There is no accurate data regarding how much of the world’s foreign-exchange reserves are held in yuan, but experts estimate that it is not much higher than 1%.

These disparities are quite reminiscent of the global economic panorama of the late nineteenth and early twentieth centuries. In those days the world’s economic leaders were being reshuffled.

The United States was in first place due to the volume of its industrial and agricultural output. Germany was moving into second place in some categories. And Great Britain, which for most of the nineteenth century had been considered «the world’s factory», had begun to slide into third place.

Complete story at - The 4th Media » War and Dollar: To Protect US Dollar, The FRB, US Bankers Prepare for a Major War


No comments:

Post a Comment

All comments subject to moderation.

Recommended Reading via Amazon

If you're seeking more information about how the world really works, and not how the media would want you to believe it works, these books are a good start. These are all highly recommended.

If you don't see pictures above, you likely have an adblocker running.  If so, here are the links.

1. The Shock Doctrine - Naomi Klein
2. Confessions of an Economic Hit Man - John Perkins
3. Manufacturing Consent - Edward Herman, Noam Chomsky
4. Gladio - NATO's Dagger at the Heart of Europe - Richard Cottrell
5. Profit Over People - Noam Chomsky
6. Soviet Fates and Lost Alternatives - Stephen Cohen
7. The Divide - American Injustice in the Age of the Wealth Gap - Matt Taibbi

How this works.  Follow one of the links.  Should you decide to buy that item, or any item, I get a small percentage, which helps to maintain this site.  Your cost is the same, whether you buy from my link or not.  But if the item remains in the cart too long, I don't get a thing.  
Related Posts Plugin for WordPress, Blogger...