In July 1944, 44 delegates from Allied countries came together during World War II in Bretton Wood, New Hampshire. The goal? Devise an international currency system to manage foreign exchange that would disadvantage no country and effectively facilitate post-war rebuilding and commerce. The outcome: The U.S. greenback would be the world’s reserve currency.
It has been almost 80 years since, and all nations have been better off with a United States dollar-dominated world. World gross domestic product (GDP) in 1940 was $7.81 trillion. For 2023, the world GDP is expected to be $112.6 trillion. That is an increase of 1,441 percent. Billions of people have been lifted out of poverty because of this.
China is working overtime to disrupt the dollar-dominated world economy. The significance of the dollar losing its premier position cannot be overstated. The Biden administration should not overlook this.
Most Americans may be unaware of crucial transactions occurring around the globe recently. And who could blame them? All the corporate media’s main headlines have been over the now-public indictment of former President Donald Trump, over factually weak allegations involving hush-money payments to a porn star.
The indictment of a former president is a crossing-of-the-Rubicon moment in American history. But displacing the dollar as the world’s reserve currency, as China and Russia have both made known is their objective, has analogous ramifications for the world. But while the world watches Trump’s indictment, they are missing China’s transactions with some of our major allies and trading partners in the yuan.
