Prof. Michael Hudson. Collapse of the Dollar: Toward Ending the US Monetary Empire

The war in Ukraine will likely be a turning point in world history more profound than many of us anticipate. The reason is that events are prompting a basic change in the global financial system.

Most of us (in the U.S.) are accustomed to living within an affluent sector of the global economy. That affluence derives from the fact that the largest part of global trade is transacted in dollars. Should that change — should other countries begin to conduct international trade without dollars — the U.S. will lose geopolitical power.

The video explains the mechanics of this prospect.

The mechanics are important to grasp, because U.S. and European citizens have much to loose if China, India, Russia, Saudi Arabia and others they do business with choose to operate without using dollars as a medium of exchange.

And why shouldn’t they? The U.S. habit in recent years has been to confiscate trading partner dollar assets whenever we become unpredictably displeased. We cancel them, why shouldn’t they cancel us?

Among the many media-driven misunderstandings about the war in Ukraine is the American public’s failure to appreciate the potential for and the consequences of being cut out/off from global commerce.

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