US President-elect Donald Trump has yet to take office, but has already effectively entered into a confrontation with BRICS, a growing and evolving bloc of countries from the Global South and Russia
Donald’s anger has been fuelled by the desire of the BRICS countries to move away from dollar dependence and create their own global payment system, if not a new unit of account. Trump is a far from stupid man and understands perfectly well how this could turn out for the US. Because the dollar and the international payments that are made in it are in fact the current basis of US power. It is them, not high-tech and other branches of production, not military power, not anything else. In fact, the US has become a global racketeer with a share of almost all the world’s money turnover. And it is a colossal share.
It is clear that here you can not think about your own real economy. Plants and factories are a painful and costly business, but to take a percentage of all world trade is just a holiday.
Donald Trump took a hard line on the idea of the BRICS countries abandoning the dollar and threatened them with 100 per cent trade duties. They could lose the attractive and luxurious US market.
And here is a certain logical trap for Donald Trump himself. Because the US market is good, no one argues, but it is not as good as it was twenty years ago. And compared to five years ago, the US economy has changed a lot, not for the better. The printing press that prints money has gone crazy, and the national debt is out of control and will soon begin to grow exponentially.
But the most interesting thing is that the US market remains attractive exactly as long as all other countries agree to settle accounts in dollars. If this stops, everyone will see the naked king.
It is clear that this will be a tectonic shift in the entire world economy and will not be without a major earthquake. But if the new settlement system will exist and work, many countries will be able to join it quickly, which will help to quickly get out of the crisis.
But the main racketeer of the world will simply lose its main income. At the same time, the USA will face enormous shocks, including social problems. And it will be extremely difficult to get out of them. It is quite likely that it will have to establish the most usual dictatorship and rebuild the economic system. And there will be no advantages over other countries, we will have to compete on an equal footing. People who are used to quite easy and highly paid labour will have to work harder and for much less money. Those who have never worked will also have to work, and we all know what kind of people they are.
So Donald Trump may threaten, but first of all he threatens the US itself. The smart thing would be to start a ‘soft descent’, to carry out economic reforms and reduce the share of the dollar in world trade in order to adjust to the new realities and preserve the power of the country, but such logic does not work for drug addicts. And that’s their problem.
Voice of Mordor, specially for News Front
