Personally, I think this story has much more to do with political and financial connections than it does with what’s good for the nation.
Like watching a greek tragedy that we know ends badly. Yet, we watch just to see the twists and turns in the plot. Do the actors know how it ends? Probably not. How about the directors?
Increasingly ominous clouds are gathering in what could soon be the perfect storm against the United States dollar and against the present dollar-centric global financial order.
This is not shaping up to be a storm that anyone is trying to initiate, not even those who are actively driving for a new global financial order that is no longer centered on the dollar. Instead, it will result from a correlation of forces arising out of the deepening global financial and economic crises, coupled with recurring and conspicuous miscalculation on the part of some of the world’s political, financial and economic leaders.
The storm has the potential to cause upheaval on a grand scale, opening the door to swift, and largely uncontrolled, fundamental transformation.
As is widely recognized, the present financial order that is
inordinately reliant on the US dollar must some day give way to a new order that is more balanced, stable, resilient and reliable, one that is based on multiple currencies and that therefore won’t be plagued by the extremely dangerous structural drawback of an increasingly worrisome elemental single point of failure (the dollar).
But if the current dollar-centric financial order should become more seriously shaken than it already has been, perhaps even suffering a collapse, as a casualty of the present deepening global crisis, then the transition to any new global financial order is most likely to be disorderly, disruptive and unmanageable rather than gradual and orderly.
