/ world today news/ The topic of currency zones, outlined for the first time in Andrey Kobyakov and Mikhail Khazin’s book “The Decline of the Dollar Empire and the End of Pax Americana” in 2003, is becoming more and more relevant. The only problem is that there is still no alternative to the Bretton Woods dollar system, and this, in a situation where the system itself is increasingly in crisis, is becoming a common problem. And something needs to be done about it…
The Prime Minister of the Russian Federation Mikhail Mishustin invited the SCO countries to work on the creation of payment infrastructures. According to the Russian Prime Minister, the question of exchange trading with national currencies should also be studied. He took the initiative at a meeting of the Council of Heads of Government of the Shanghai Cooperation Organization.
This, of course, is not all that Mishustin said, but I am interested in the topic of financial infrastructure. Because otherwise, sooner or later, the dollar infrastructure will have approximately the same picture as with the settlement system in Russia in August 1998. And many already understand that this is not an empty threat, but a very real one.
The problem is that there is simply no alternative system. And its creation is not so easy, since the entire system of Bretton Woods institutions (the IMF, the World Bank, the US Federal Reserve, various rating agencies and international auditing companies) actively oppose this process. In fact, even China’s attempts to create an alternative rating system for companies several decades ago did not lead to success.
What Mishustin said is actually the first step towards creating an alternative financial system. The main part of it, of course, is the creation of an alternative investment system, but this is still a long way off. Yet, without a dollar-independent payment system, nothing can be done. So Mishustin pulled the right strings to pull off the whole new financial model.
All in all, I can only be glad that the process of creating an alternative to the world dollar system is moving forward. True, there is one important question. The fact is that we (Russia) and a number of countries are one of the currency zones, and China is another currency zone. Just like India, by the way.
And as long as we all work together to create an alternative to the dollar, all is well. But then problems can begin, as interests will diverge. Not in the sense of fighting, but in the sense that there will just be movement in different directions.
But this does not specifically apply to the payment system, it is needed in any case and between zones. So you need to listen to Mishustin and start the appropriate work. The only trouble is that the supporters of the Bretton Woods system, including those in the leadership of our monetary authorities, have not gone away and will do a lot of damage. As they have already done many times and are doing now, just look at the ruble exchange rate and inflation in Russia.
In general, Mishustin, of course, is great, but he can’t do it alone. He needs to be helped.
Translation: ES
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