The Dollar’s Future: Multilateral World, Multilateral Currency

The Dollar’s Future: Multilateral World, Multilateral Currency

 Mujeeb Khan

 

 

French Protesters at NATO Summit

Unions call for protests in France over the high prices and pension

  After World War II, the United States Marshall Plan rebuilt the war-torn countries of Europe in a truly brief period, and they became industrialized countries in the 1960s. for seventy years, these countries had complete dominance over the world economy. The world financial institutions were under their control. They had a monopoly on commerce and trade. Now Ukraine war in the middle of Europe is rolling back 70 years of economic growth and prosperity in Europe. America is $31 trillion in debt, and by 2030 it will increase to nineteen trillion dollars. America will be the indebted superpower of the world. And Pakistan will be the most indebted nuclear power in the world. Both countries will be sitting on the branch of the fallen leaf tree and will look envious at the economic prosperity of those who do not owe anyone. However, the effects of the Ukraine war are now felt in Europe’s economy. Russia was a major trading partner of the European Union. By isolating a major trading partner, European countries have harmed their economies. European leaders and the United States believed that Russia would not be able to withstand its severe economic sanctions and would soon compromise on a ceasefire. But the Ukraine war has now entered its second year. Surprisingly, European countries have opened a war front with nuclear power in Europe. Russia has thousands of nuclear weapons. For Ukraine, Europe has made its enemy, but it will not go to war with Russia.

 Europe’s leaders are particularly nervous about where the war in Ukraine will take them. In Europe, public anxiety about the war in Ukraine is increasing. Inflated cost of living and unemployment are the effects of this war that the people will face. There are protests in France over raising the retirement age and the pension issue. There is a protest in London over the rising cost of living. Germany, one of the largest economies in Europe, is shrinking. German companies are moving to China, according to reports from trade research institutes in Europe, 58,000 companies will go bankrupt in France by the end of this year. US Treasury Secretary Janet Yellen has said that “the hegemony of the dollar threatened by US sanctions on Russia. Russia and Iran are looking to replace the dollar and China’s currency the yuan is gaining ground against the US dollar. And this is one of China’s it has long been ambitious to have its currency recognized in global trade. The US’s restrictive sanctions policy has opened the door to trade in more than one currency.

  Saudi Arabia and the oil-producing countries of the Gulf have also announced to trade in Chinese currency. Iran is already trading with China and Russia in their currency. Brazil and Argentina have decided to trade in their own currency. India has announced that countries that cannot afford the dollar due to its high price can use Indian currency. On the other hand, the trade between European Union countries is in Euro. The trend to gain independence from the dollar-dominated world is growing. Trade in the region and among regional countries in local currency is promoted. In addition to US sanctions, there is pressure on the dollar from the increasing debts of the US.

 Today, Saudi Arabia and Gulf countries are talking about payment of their oil in other currencies, after the first Gulf War, Iraq’s President Saddam Hussein refused to accept the payment of his oil in dollars. After him, Libyan President Gaddafi also refused to receive oil payments in dollars. They were such visionary leaders that they knew that one day the oil-producing countries would have to make this decision.