US dollar sings song of sanctions at parting

Original title: Why does the world ostracize US dollar?

By Ri Hak Nam

Not a few countries in Asia, Africa, Europe, and South America are on the road to eliminate the US dollar and use their own currencies for settlement.

Russia has decided to more positively use national currencies for bilateral trade with China and Vietnam.

The Shanghai Cooperation Organisation (SCO) is in discussion for the measures how to proceed the settlement with national currencies as a way to strengthen cooperation among member states. The Eurasian Economic Cooperation Organization (EECO) is currently clearing more than 60% of the trade with national currencies.

Iran has already made 35% of the trade with Turkey in its own currency. The European Union (EU) also encourages to use the euro in strategic industries such as energy and aircraft manufacturing, and tries to increase the rate of euro settlement in the business with external countries.

It has become today's trend to push out the US dollar and raise the rate of using national currencies in the trade sector .

If so, why is the world taking the road without the US dollar?

Analysts say, it is because the US has made ill use of the current international financial system as the means of imposing sanctions and pressure on countries that are antipathetic to its taste.

As known, a change occurred in the political and economic landscape of the world after the World War II. Not only defeated powers such as Germany, Italy and Japan but also other European countries including Britain became weak due to severe damage from the war.

Contrary to them, the US gained huge profits from selling weapons and became the largest creditor in the world through wartime period. Occupying the hegemonic status in the capitalist world, the US established the international financial system where the US dollar is its base currency. Since then, all goods and currencies have been evaluated by the US dollar and the settlement by the US dollar was given priority in the world business.

The US has used this advantage in realizing its aim to build the world domination order. It froze the fund of dissident countries, imposing pressure and sanctions on them. Abusing its dominant position in the international financial system, the US used its domestic law as if it were the international law.

The US recently imposed sanctions on Zhuhai Zhenrong Co Ltd. The reason was the Chinese firm's energy cooperation with Iran. The US applied unilateral 'long-arm jurisdiction' of its domestic law.

China strongly criticized that 'moves [of the US] went against the prevailing global trend'. However, the US did not blink an eye.

Frequent sanctions are driving other countries into separation from the US dollar in their business and search for a new international financial system.

There is another factor of rejecting the US dollar.

It is the economic crisis. This is cornering American people into anxiety and fear.

In an article titled 'Military ambition destroys the United States', a Russian newspaper said: 'One of the major issues discussed in the foreign economic publications is that the US can be just ruined. The reason is its huge military spending. The US continues shouldering astronomical debt. There will be omens of ruin sooner or later.'

It is not coincidental.

The problem lies in here. As long as there is the current international financial system where the US dollar is the key currency, economic slump and debt crisis of the US can have aftereffects on other countries.

It was already proven during the international financial crisis of 2008. There is no assurance that such cases will not be repeated in the future. Many countries are undergoing debt crisis and economic crisis. They are the extension of economic and financial crisis of the US.

It is perfectly plausible for the international community to raise its voice for the demolition of current international financial system.

(Original text in Korean, Rodong Sinmun - August 2, 2019)

*Googled from Korean to English for translation, and from English to Korean for reverse translation.

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