THE GREAT WORLD ECONOMIC AND FINANCIAL RESET: THE CRISIS OF THE BRETTON WOODS SYSTEM
The set of war events that took shape starting from February 24, 2022 (the date of the Russian invasion of Ukraine) gives us an idea of the global geopolitical dynamics and the geopolitical objectives of the great powers involved in the power conflict that sees opposing the Anglo-Saxon empire on one side and the Sino-Russian bloc on the other. The first has as its main objective the maintenance of the current financial system and therefore the preservation of the dollar as the reference currency for world trade (with all the benefits that this entails, effectively preserving Anglo-Saxon hegemony over the world). The Sino-Russian bloc instead wants to create an alternative financial system to the Western one, replace the dollar with a currency that has a real underlying asset in precious metal as guarantee and in this way prevent the continuous refinancing of the US public debt which, on balance, represents today , together with the wealth created by Western financial markets, the true cornerstone of the financial economic power of the Anglo-Saxon empire. The ongoing economic-financial war is at the basis of the military conflict that has developed over the last few years. The war is therefore the logical consequence of the profound upheavals that the global financial system is maturing within itself, decreeing the crisis of the “Bretton Woods” system, that is, of that financial system, to the full advantage of the USA, which had been imposed since the end of the Second World War. world war to the entire first world and its satellites. The well-being and prosperity of the entire West and in particular the USA depends on the maintenance or otherwise of this financial system. All those who intend to undermine the foundations of the current financial system become a target of the West’s economic and military war. Since, as has often been reiterated by the US establishment, the well-being and prosperity of the West are non-negotiable. And since the latter are a direct consequence of the financial system established in Bretton Woods way back in 1944, anyone who dares to undermine this economic-financial order must be ruthlessly fought without hesitation whatsoever. And destroyed as a result. Those who do not understand the true nature of the ongoing war events do not understand what is at stake in the ongoing confrontation between East and West. In Ukraine, the USA, fighting Putin, is in fact trying to maintain the existing financial status quo since the Russian president, together with the Chinese one, has been the greatest promoter of a great financial and geopolitical reset in the contemporary world.
THE GREAT WORLD ECONOMIC AND FINANCIAL RESET: BRIEF HISTORICAL RETROSPECTIVE
Since the 90s of the twentieth century, that is, since the two former red giants adopted the liberal and capitalist economic model, Moscow and Beijing have been among the largest buyers of US public debt and therefore financiers of American well-being and its industrial-military complex. All this thanks to the powerful development of their economies and the huge profits resulting from an enormous trade surplus. All this lasted until the beginning of the 1910s of the 21st century when Russia and China, aware of their economic strength, began to actively counter Western war action in Africa and the Middle East. The war in Libya and the forced overthrow of Gaddafi (who had proposed to the African Union the adoption of a gold-backed currency that could replace the various local currencies including the CFA franc), which occurred in 2011, made Sino-Russian interests and those of the Anglo-Saxon empire completely incompatible and divergent in the Middle Eastern chessboard and laid the foundations for the Russian military intervention in Syria in 2013.The USA responded with the Maidan coup and with the Westernization and militarization of Ukraine. It was in this geopolitical context that Moscow began selling American government bonds while refusing to finance the US war machine. Even Beijing, the largest holder of US public debt, began to liquidate large portions of American bonds starting from the same period, posing very serious challenges for the US and for the latter’s ability to refinance their enormous debt indefinitely. debt mass. The economic and commercial expansion of the two former red giants then meant that Moscow and Beijing favored trade in national currency with their trading partners (thus replacing the dollar). Of particular relevance are the relations that Russia and China have been able to establish with Saudi Arabia since this country is one of the largest creditors of the USA on a global level. Riyadh has moved closer economically and geopolitically to Moscow and Beijing as a result of the shale extraction revolution in the USA which has effectively made the latter independent from the hydrocarbons extracted in the Middle East. Which favored the start of transactions in yuan for purchases of Saudi oil by the Chinese (who have become the world’s largest buyers of Saudi crude oil). The Saudis are creating a cartel with Moscow (Russia and Saudi Arabia are the largest oil producers in the world) within OPEC to prevent manipulations and sudden drops in prices (which the USA would like to undermine the foundations of the Russian economy , still dependent today on exports of the precious raw material). These developments represent a serious threat to the maintenance of the Anglo-Saxon economic-financial order also because if the enormous monetary mass produced by the FED were to “free itself” from financial products made in the USA and return to circulation in North America it would cause a fearful inflationary spiral the consequences of which would be devastating for consumption and the economy of the States. It is therefore clear that if the USA is not able to dissuade, even by force, Moscow and Beijing from encouraging and carrying forward such dynamics, the Anglo-Saxon economic-financial system will soon collapse with frightening consequences on the wealth and well-being of the West (the the same can be said for the geopolitical role of Washington and London which will be reduced accordingly).
THE GREAT WORLD ECONOMIC AND FINANCIAL RESET: CONCLUSIONS
From what has been written so far it can be seen that the world is experiencing a great economic, financial and geopolitical reset with potentially devastating consequences on the level of well-being throughout the West. In Ukraine (as well as in all other present and future theaters of war) the power, wealth and well-being of the entire West is at stake. Anyone who wonders why such a slaughter must understand that the logic of power is ruthless. Washington and London will not give up their privileges except by force. This is why the war cannot end and why the entire West is calling for war against the new geopolitical reality that is advancing. Without the collapse of Russia and the isolation of Beijing, it will not be possible for the West to maintain hegemony. Which, obviously, he absolutely doesn’t want to give up. This is why the war will continue and will be fought in an even bloodier way than what has happened so far. It is an existential question as much for the Anglo-Saxon empire and its hegemony as for Moscow and Beijing, for which a defeat would mean accepting the limitation of their sovereignty and, on balance, a role as vassals, at the mercy of Washington and London, on the world geopolitical stage. All this will leave optimists and right-thinking people disenchanted. It won’t be a walk in the park. We will all be involved in this planetary clash. And if you take into account the resources that the two sides can throw into the fray, in a scenario of total war, you have to put your hands in your hair. Both have enormous wealth and the staying power of both is simply frightening. How will it end? We just have to observe the ongoing developments.