US Dollar -Political Repercussions of Fall and Raise of The US Dollar

The Depreciation in Dollar value

It’s assumed that America is slowly recovering from the diabolic clutches of recession that reigned the financial spectrum the last two years. However, the recession is receding after putting at stake, the lives and savings of many share-holders and workers. Even if the ones who lost their jobs manage to get back to their jobs, they won’t be having access to the privileges that their jobs offered them earlier. America thus protects the capitalist minority at the expense of the tax-payer majority which constitutes the public.

But there is yet another impending danger—the depreciation in dollar value.

Barry Eichengreen, Economic Professor at California University recently wrote in The Foreign Affairs magazine, one of the official publications of the United States,

" This depreciation in the dollar value is gonna damage the American politics and its global monopolies"


Special Drawing Rights (SDR)

Professor Barry, earlier, was of the belief that even though the monopoly of dollar terminates giving way for the Euro and Chinese Yuan to come to the lime light, dollar will always retain its premier position. But now it’s getting evidenced that a fourth exchange modus operandi is gonna rule the international trade and finance scene.This’ll be a super dollar which will carry out all the functions of a dollar.

This is called Special Drawing Rights (SDR). The investments of nations and individuals in dollar are gonna get replaced with SDR. It’s the American Federal Bank that controls the exchange of dollar. But for SDR, the controlling authority ’ll be the International Monetary Fund or the World Bank. This, for sure, is gonna put an end to the American supremacy in World Bank dealings.

China and India has already requested to increase their partnership in IMF and World Bank. China’s dollar investment which has crossed thirty thousand billions backs up the functioning of American banks and treasuries now. America has requested China to write off a share of this deposit so that the former can retrieve itself from recession. America’s recent inclination for peace should not be looked upon just as Obama’s stance. The American army and navy forces employed all over the world consumes a lion share of the American monetary system. To sustain the international relationships, America has to give huge amounts to other nations in the name of national security. There are many nations which exploit America in the name of anti-terrorism. America is in an emergency to clear off these debts.

Former American President Theodor Roosevelt predicted that 20th century is gonna be American Century which turned out to be true during the Second World War. Roosevelt’s prediction perished after fifty years. George Bush’s aim was not different. But world refused to accept his leadership.

Conclusion

The road before Barack Obama is one of recession and dollar downfall. Thus monopoly gives way to homogeneity actualizing the predictions of Barry Eichengreen. Only the admirers of dictators like Roosevelt, Herbert Hoover, Richard Nixon and George W. Bush will be disappointed at this new global structure.

More by this Author


Comments

No comments yet.

    Sign in or sign up and post using a HubPages Network account.

    0 of 8192 characters used
    Post Comment

    No HTML is allowed in comments, but URLs will be hyperlinked. Comments are not for promoting your articles or other sites.


    Click to Rate This Article
    working