De-Dollarization
Tuesday, June 16th, 2009De-Dollarization: Dismantling America’s Financial-Military Empire
The Yekaterinburg Turning Point
by Prof. Michael Hudson
Prof. Hudson basically says (I think) that nations like China (but many others as well) were collecting dollars because the U.S. was buying more than it was selling for many years now. In order for them to then not lose value they had to buy U.S. Treasury bills and finance the U.S. economy, which wasn’t very productive, but also pay for global military adventures. Not wanting to do this any more, they are creating a different reserve currency (the renminbi) that isn’t tied to any one country. A number of nations are meeting at Yekaterinburg to figure out how.
When they do, the United States will no longer live off the savings of others (in the form of its own recycled dollars) nor have the money for unlimited military expenditures and adventures.
US officials wanted to attend the Yekaterinburg meeting as observers. They were told No. It is a word that Americans will hear much more in the future.