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America is being attacked … and few notice

America is being attacked … and few notice

The headline does not refer to the obvious military and terrorist attacks against American citizens, institutions, military personnel and physical assets in recent years.  I am referring to the attack on the dollar as the world reserve currency.  It is not yet open economic warfare, but it is the staging is already underway.

Russia, China and North Korea are the core of an international effort to take down the dollar as the world’s primary reserve currency.

Having the dollar as the international currency  provides several benefit to the United and to the world economy.  The dollar plays a role in the stability of world markets – a trust  that is based on the strength of the American economy and the reliability of dollar as a medium exchange.  That trust is recognized by both private investors and foreign nations.

(This is true even at the retail level.  I found that Chinese merchants preferred to take payment in dollars rather than in their own RMB.)

Dollar power has enabled the United States to exert pressure in shaping global political and economic strategies.  It is often referred to as “soft power”.  But that does not suggest it is not highly effective.  Without dollar power, the United States would lose enormous leverage in international affairs.  The international demand for the dollar enables the United States to maintain lower interest rates.

Perhaps the cabal’s greatest threat is through China’s digital currency.  With the dollar as the reserve currency, the United States could effectively freeze the funds of adversarial nations.  It is one weapon in the arsenal of sanctions.  Since digital currency does not go through traditional banking systems, it provides a unique opportunity for secret transactions – the type favored by rogue nations and crime syndicates.

China has been leading the effort to replace the U.S. dollar with the Chinese renminbi (RMB) – often referred to as the “yuan”.  China has already created exchanges – such as the Ganzhou Rare Metal Exchange – based on the RMB.  These are designed to make the RMB more stable and attractive to foreign investment.  With the dollar as the world currency, the RMB is just another national currency.  If China can replace the dollar as the world reserve currency, they – not the United States – will be the most important nation in the world.

Russian President Putin would like the ruble to replace the dollar.  As usual, he suffers from visions of grandeur – punching above his weight class.  But he is doing his part to undermine the dollar – more as a supporting role to Chinese President Xi.  As a means to undermine the dollar, Putin has been promoting the use of the ruble – and at the same time cooperation with China’s more serious threat to the dollar.  He has created the Mir payment system as an alternative to the United States’ retail credit systems, such as Mastercard, Discover and Visa.

North Korea is in the game because of its problem with its won – which has been losing value against the dollar.  Despite his best effort, Kim Jong Un has not been able to prevent North Koreans from favoring the dollar – and even the Chinese yuan –over the won as a more trusted currency.

While Russia and North Korea are attempting to have their currencies more widely accepted in international transaction, they are too unstable to have wide appeal as a reserve currency.  But they can play a strategic role in helping China.

Not long ago, Iran was a significant member of the international anti-dollar cabal.  Even United States ally, India, has been showing signs of joining the cabal. Iran is out of play – with huge economic problems due to their miscalculations in Middle East warfare.

Fortunately, China has run into an economic brick wall.  Its golden dragon economy has become more of a paper tiger.  The prospect of China expanding into the largest economy in the world in the near future – as many analysts had predicted – has now been put off to the distant future, if at all.

The United States dollar maintains two advantages.  The first is trust.  The dollar remains by far the most stable currency in the world – and money markets tend to be more pragmatic than political – as Kim discovered in North Korea.  In addition, the dollar is deeply embedded in the world financial structure.  Its roots are many – and they go deep.

While there is no needed to panic at the moment, it would be a mistake to completely disregard the actions of the cabal out of hand.  The fact that there is now a desire – and a concerted effort – to dislodge the dollar as the world reserve currency is concerning.  Just because it will not be easy does not mean it should be ignored.

Though not as widely known to the general public, the war on the dollar can be as potentially dangerous to the United States as our adversaries’ guns and bombs.

So, there ‘tis.

About The Author

Larry Horist

So, there ‘tis… The opinions, perspectives and analyses of businessman, conservative writer and political strategist Larry Horist. Larry has an extensive background in economics and public policy. For more than 40 years, he ran his own Chicago based consulting firm. His clients included such conservative icons as Steve Forbes and Milton Friedman. He has served as a consultant to the Nixon White House and travelled the country as a spokesman for President Reagan’s economic reforms. Larry professional emphasis has been on civil rights and education. He was consultant to both the Chicago and the Detroit boards of education, the Educational Choice Foundation, the Chicago Teachers Academy and the Chicago Academy for the Performing Arts. Larry has testified as an expert witness before numerous legislative bodies, including the U. S. Congress, and has lectured at colleges and universities, including Harvard, Northwestern and DePaul. He served as Executive Director of the City Club of Chicago, where he led a successful two-year campaign to save the historic Chicago Theatre from the wrecking ball. Larry has been a guest on hundreds of public affairs talk shows, and hosted his own program, “Chicago In Sight,” on WIND radio. An award-winning debater, his insightful and sometimes controversial commentaries have appeared on the editorial pages of newspapers across the nation. He is praised by audiences for his style, substance and sense of humor. Larry retired from his consulting business to devote his time to writing. His books include a humorous look at collecting, “The Acrapulators’ Guide”, and a more serious history of the Democratic Party’s role in de facto institutional racism, “Who Put Blacks in That PLACE? -- The Long Sad History of the Democratic Party’s Oppression of Black Americans ... to This Day”. Larry currently lives in Boca Raton, Florida.

12 Comments

  1. WeeEEE The People

    Sounds such a biased and myopic view, not far from a veiled justification of American imperialism using the Dollar as “world’s primary reserve currency.” But world’s nations are not bound to follow this dictate – they can and do have reservation against this “reserve” tool that puts America above others. I believe in the freedom of choice and world’s governments should be free to choose their own currency to trade in whether it’s the USD or anything else. The only real danger to American freedom and strength is from within its corrupt government. All else is a red herring.

    Reply
    • Larry Horist

      WeeEEE The People …Not sure you know how international currency works. First … all nations do have their own currency and they cant trade in that currency.. We do not force nations to use the dollar as the reserve currency. They choose the dollar because it is stable. They trust the dollar. Other currencies are not dependable and trustworthy. You do not seem to like America very much.

      Reply
  2. fRANK DANGER

    Nice fairly balanced story by the author, perhaps a tad of terror implied, but not too bad. Feels like this is familiar territory perhaps published a few times, with revamps, over the year. But nice nonetheless.

    Not as criticism or to correct, but to augment, perhaps enhance, clarify, expand, and make simpler, here’s an 8/24 piece from Brookings that is excellent. Pretty much dovetails the author but with a bit less fear and loathing about our future.

    Bottom line: first, and foremost: many of the world’s ills could be solved with a “world dollar” not owned by any sovereign nation. However, that would be like managing the “world’s dollar” by the UN, a group of all nations, and that’s a nightmare in itself.

    The issue is having a dominant monetary standard promotes economic stability and CAN ease, but not necessarily, weaponization of monetary resources for dominance by the owner.

    The world gains advantage by using the dollar, as shown in the Brookings story, and from the author.

    BUT, the US gains as well, as shown in the Brookings story, and from the author. And generally, when we gain, that comes at a cost for the guy on the other end. And that’s a main reason other countries would rather use another form of money. They want that power, and want to take that leverage away from us. Not necessarily evil, just in their own self interest.

    Yes, the dollar is less used than in the past, but the Brookings piece shows it may be just friendly countries resulting in no harm, no foul. But everyone concludes, worth watching but BRICS and the rest will not bring our dollar down anytime soon.

    Nice piece, Larry. Next year, feel free to edit using this piece if it adds value. I think it fleshes a few things out with greater clarity for a most complex subject.

    *https://www.brookings.edu/articles/the-changing-role-of-the-us-dollar/*

    Reply
  3. BRUCE CAIN

    Massive Fed and Gov’t spending is definitely debasing the dollar. And cryptocurrencies are a scam.

    Please share widely. This is a very comprehensive analysis of the LA Fires. The LA Fires are said to be the most destructive fires in California’s history, destroying over 12,000 homes and causing nearly 300 billion in damage. And as of this essay the fires are not contained and heavy winds are expected to increase in the next few days There is no doubt that 100 mile/hour Santa Ana winds, flying cinders and extreme drought conditions were a significant cause of the fires. But the primary cause was the lack of forest and water management. In addition I have concerns that geoengineering, DEWs, Smart Meters and other technologies may have also been employed.

    The LA Fires were the result of Globalist Policies and not Climate Change
    Did Smart Meters, Geoengineering and DEWs also contribute to the historic fires
    https://brucecain.substack.com/p/the-la-fires-were-the-result-of-globalist

    Reply
  4. Andrew Gutterman

    That was a wasted essay. Why? Because only the USA has $40 trillion of reliable bonds, notes and whatnot that can be traded daily, without fear of confiscation. Nobody is going to trust China not to do that, beyond the fact that China does not have “safe” assets. It’s going to be a long time until something replaces the dollar.

    Heck. Quite a few countries use the dollar as their currency. Nobody uses China’s or Russia’s currency like that.

    Reply
  5. FRANK DANGER

    Andrew, look at the Brookings story and the changes in our balance over time. Indeed, the dollar is losing traction, but the author’s note, not to Russia and China, but to friendlies. Still losing traction, nonetheless.

    No fear, but need to monitor because it is changing.

    Reply
  6. Darren

    When The Biden Crime Family was Paid from China & Ukraine into all their Shill Company’s,
    What form of payment did they receive?
    Dollars or Yen or Rubles?
    And the question is will the Dollar will stay supreme!

    Reply
    • Tom

      Biden was paid in Trump Doge cryptocurrency. That is why in four years of Republicans spending tens of millions of dollars, they could not find it.

      Reply
  7. Frank danger

    Darren: what payments, what crimes, what shell companies. If you mean Hunter’s legitimate companies, legitimate transactions. dollars.

    You had Comer and Jordan use the full weight and budget of the Congress investigating this for four years and all you got is the same ole unsubstantiated. unsupported, bullshit that you posted above.

    BUSTED as in can’t prove shit

    Funny part is when we prove, in a court of law, criminality of Republican office holders; you say corrupt system. And when we convict the lackeys, Trump pardons them.

    Some rule of law you folks practice.

    Reply
  8. AC

    Any article written by Larry that is mostly an objective reporting of available facts like this one is a worthwhile read. Avoiding political sinkholes by not taking any of either party’s perspective is laudable academic scholarship on Larry’s part.
    May you, Larry, continue writing articles from a similar perspective through the coming four years.

    Reply
    • FRANK DANGER

      OK, that’s two thumbs up from the left. Somebody gonna have to go back to maga camp for retraining :>)

      Reply
  9. Danielcok

    [b]Expose your ferocity[/b] – [url=https://psee.io/663bfe][b]gratify your sexual lust right now![/b][/url]

    Reply

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  1. Frank Danger .... Lots of opinion and not a scintilla of evidence. Where is your proof, old man? Funny how…