The US dollar's value
depends on whether central banks, corporations, and individuals
are content to hold their assets or wealth in dollars.
-
If they are,
it does not matter what currency is used to transact
oil.
-
If they are
not, it does not matter if all oil is transacted in
dollars.
Why? Because if they
don't want to hold dollars, they will dump the dollars as soon
as the transaction is completed and move into other currencies
or gold.
What China is doing
is creating a currency that might be a more attractive currency
to hold.
It is possible that the gold-backed Chinese currency is a
move against US power, but I see it differently. I see it as a
protection against US power.
China and Russia are
disassociating from the dollar system,
because Washington, in its abuse of the world currency role,
uses the dollar payments mechanism to impose sanctions on other
countries and to threaten them with exclusion from the payments
clearing system.
In other words, Washington, instead of operating a 'fair
system', uses its world currency role to dominate
other countries.
Russia and China are
too strong to be dominated, and, thus, are throwing off the
dollar system. If other countries follow, the dollar will cease
to be an instrument of US control over the rest of the world.
To put it in different words,
Bretton Woods gave Washington
the responsibility for the world financial system. Washington
abused the power entrusted to it by using the dollar system to
destabilize other countries, such
as Venezuela currently...
Washington's abuse of
the world currency role in order to advance American financial
and business interests and Washington's power over the foreign
and domestic policies of other countries has set in motion
forces that will eliminate the dollar's role as world reserve
currency.
The hubris and arrogance of Washington are destroying American
power.
