Similarly,other countries also maintained their system within thier country.Now trade was happening within the country but the countries were not trading among themselves.so this thing was also brought internationally.When one country was trading with another country,the same paper currecny was used there too.Countries started trading at the international level with thier own notes and currencies.Just as the chinese used to buy goods from europe by giving their yuan and the europeans used to buy goods from china by giving thier pound sterling and there was no tesnion for any country.beacuse they used to trade in paper currency among themselves, at the end they used to get gold in return and this whole system of trade became so much easier that the trade of the whole world increased very fast.so, basically all the trade that was taking place,be it national tyrade or international trade,was in gold only,but a piece of paper was reflecting it which was named currency,but be it any country could print as much currency as it had gold which was called the gold standard.
In the beginning of the 19th century:The UK was producing the most resources and was sending different things to the world by making them.UK had accumulated more currency i.i more gold.The UK’s gold reserveshad started increasing and the UK’s currency,sterling,was becomming bigger in comparison to other countries.Pound sterling started circulating the most in the whole world.people started trading in it the most,like toda’s date is US’s dollar
The countries of the whole world used to trade together,out of that 60% trade was in pound sterling and some countries started keeping pound sterling instead of gold beacuse it was easier to kepp the paper currency which was comparative to gold and create its resevre.
The year 1913 starts:This was the time when all the equations started changing and US dollar started coming into the picture and the reason was that at this particular time when the first world war started.This was the time when the condition of UK was very bad.UK gets into debt of 7.8 billion pounds beacuase of war and weapons,and this was not a small amount.ut was a huge amount according to that time,which was thier entire GDP,25% of that debt is on them.The gold reserves were completely exhausted and where they were supplying resources to all the other countries in the world, the opposite started happening here;on the contrary, they had to import from other countries.this was the first world war,in which the US was initiallyNeutral.US used to live quitely,he was making and selling weapons to the countries that were fighting,US was increasing the reserve of gold and even later when US entered this war,he made a lot of money by giving weapons,food grains etc…
There was a lot of profit,now in this war,US was making money but even at this time US was not that mucj ahead because US didnt have a central bank etc.There were a lot of restrictions on the trade that US did but in this war it filled the gold reserves and built central banks within his country l,brought various type of federal reserve acts and established himself in the economy of the world, but this was just the beginning of the times to come and the us was better.so now in todays date, US is not the biggest exporter.
At the time of world war 2: second qorld war starts and in this war US sells more weapons and due to this US had collected most of the gold in the whole world.70% of the gold in the whole world was with the US.22000 tonnes of the gold was with the US and all of them had the same reason that at this particular time US exported the most.It got a lot of opportunities to export.The US took advantage of this and the POUND STERLING which was ruling the whole world was now replaced by the US DOLLAR.And when all these rhiggs where hapenning,Germany also gave another blow to the pound sterling.What Germany did was that UK’s stelring which was dominant in the whole world to destroy it,Germany. Started making fake notes of sterling pound and putting them in the market so that all the countries and people lost faith in this currency and people should also remove the reserve of sterling pound.At that time,Germany was producing 5 Lkahs fake notes per month and putting them in the market. Due to this UK suffered a huge loss.It could not see any solution and this whole situation was going on .The benefit went to the US dollar and from here the US’s arbitrariness starts.The second world war ends all the countries that were Britain,Germany,soveit union,france were completely destroyed,there was only one US which was in good condition,the rest every one’s condition was bad. The gold of the whole world had come to the US. The ginancial system of whole world had completely collasped.The US had more money and more gold,but after the second world war the european countries and japan conditon was very bad.They were in great need of food,grains and fuel and they were trying to import from other countries.now they neither had currency nor gold.And US was afraid that they would start the barter system again the financial system of the whole world will get ruined and the adavantage of US dollar which it is leading will end. So to deal sith all these things
In the year 1944: 700 representatives from 44 countries gathered in new ham share within the US to find a solution to this problem and the only purpose of this entire meeting was to create a new financial system so that the situation can be improved. Now in this meet US says that this financial problem has arisen in the whole world, no trade is being done, everyone’s economy has completely collapsed, whatever gold is there, it is completely Franklin D. Rod short within the other countries. So there is only one solution for this that all of you do one thing. You do all your deals in US dollars instead of your own currency and we take a pledge and guarantee that 1 ounce of gold i.e. 28.3g of gold – in exchange we will give $35, which means that anyone from the whole world can buy an ounce of gold anytime by paying $35. We have enough gold, which means that the countries which earlier used to back their currency with gold should now back it with US dollars and the US dollar will be backed by gold and the second thing is that in this meeting the US and all the other countries together created the World Bank and IMF International Monetary Fund promotes and said that the countries which have been ruined in the war
can rebuild themselves for which IMF and World Bank will give loan, but in this also they said that the loan will be given in dollars and when it has to be returned, it will have to be returned in dollars and WEN not only this, the US made a plannding which was called Marshall Plan. us… In this what US did was to reconstruct the countries of Europe, the US gave 13.3 billion dollars in US dollars. If you compare it with today’s date, then about $173 billion loan was given and after giving this loan,US said that now you have monwy in dollars, you can use these dollars to purchase resources from us, reconstruct your country, rebuild it.What you are seeing is the loan that was given in dollars. Even today you must have read in the news that country issue vas- bonds denominated in US dollars to be repaid in 10 years. Which means that if you have taken a loan in dollars, you will have to repay it in dollars only and within this time. US did not think of short term, US thought of long term,it knows that all the countries need loans.They will take a loan and the US is very desperate to take advantage of this opportunity. The US wanted to use the US dollar all over the world. Within the entire financial system of the world, the USdollar should be there & no other currency – it wanted to circulate only the US dollar.Because it had a lot of advantages and what were the advantages, you will know further. Now you can say one thing here that all the countries except US were so stupid or so easily they was agreeing that it was also possible that they could gradually rebuild themself and the gold that is there – is also produced,so they would collect it and gradually expand their country.Why would they accept US’s words? Then the gold was produced mostly in two places in the whole world, one was South Africa and the other was the Soviet Union and these other European countries. They didn’t want them to produce gold and buy from them and benefit them. Hence they silently accepted whatever US said and the loan methods given. And it is also true that the US has helped a lot in rebuilding Europe. Therefore, you will see that their relations till date have been very good and suppose that even if the other countries wanted not to accept what the US is saying,then they too did not have any special option. What am I trying to say? Let me explain it with an example, suppose Japan is in great need of grain.It talked to Sri Lanka and asked them to give us grain, now Japan,after taking grain from Sri Lanka, has its own currency which is Yen.If you give him the money then what will Sri Lanka do with the rest of the countries will not take this Japanese currency but yes, if in this deal Sri Lanka comes to know that Japan is giving US currency instead of its own, then it will happily take it because it knows that if I pick up this US dollar and give it to the US, I will get gold in return, so this was the reason that in an unset communication in the whole world despite not wanting, the US dollar was in circulation and at that time the rest of the countries did not trust each other ‘s currency, except the US dollar, it was the only reason that they knew that they would get gold in exchange of the US dollar. Using the US dollar had become a compulsion for the rest of the countries. Just like it is a compulsion in today’s time, it had become a compulsion at that time also and this was the reason why the US was saying what the rest of the countries were saying, from loans to trade everything started to be used in dollars. Now the US does not stop here either. The US knew that importance of the US dollar, if it continues to operate in this manner, it will not last long.It had also seen the condition of pound sterling so the US did not at all want the condition of US dollar to be like that of pound sterling, so all these things were going on, after this the US played another master stroke. Actually, when all these things were going on. At the same time, their companies, which were the US and Europe,were extracting and trading oil all over the world, so all the technology from finding the oil to extracting it was the companies of Europe and the US. The Arab countries had oil, but the technology to find it and then extract it, to sell it in the open market and making profit wasn’t their idea. So from here America makes the next move. American companies reach out to Saudi and help them in extracting oil.This step of America gives Saudi a huge jackpot. A huge oil field comes out in Saudi and this oil field in this entire process.What US companies do is to extract is they make bases inside Saudi Arabia and extracting it using technology and sending it to the outside market is the entire process. Now from here, Saudi had two things in front of it, first it needed the help of US to extract the oil,its technology and second thing it also needed the security of US.Actually, when the World War was going on, the US companies inside Saudi had built their bases, were doing oil extraction etc. At that time, Italy had dropped bombs etc. on the US facilities inside Saudi. Then Saudi had a lot of concern about security as well. Saudi wanted US to look after their security because US was a super power and Saudi wanted to make his country risk free and do oil business.So this is its background story, so what happens? That when the Bretton Wood Agreement was signed in 1944, a year later in 1945, the US convinces the Saudi King that they’ll help in extracting oil and also help you to provide security.
The only thing you will have to do in return for that you have to do only one thing that you have to take all the payments in US dollars and do not accept any other currency.Now the Saudi who was there easily agrees to this thing because he had bought it in any other currency, he did not have that much confidence. In the US dollar, the thing is that it can be converted into gold at any time. So the Saudis easily agree to it.One more thing stood in front of the rest of the countries that if you want oil for your country then you will not get it in any other currency.It is compulsory to have US dollars, hence you have to have US dollars in your reserves.if you want oil and the oil was the most powerful product of the modern economy and after the Saudi deal, the other oil countries also started accepting oil in dollars only because they also had the same issue. There was a challengeand if Saudi gives such an option in dollar then it will have an advantage, then the other Arab oil countries also started selling oil in dollar only. Now what happens after this is that the US pushes itself a little more. It seemed that its dollars which are spread all over the world, all the countries would come together to convert them into gold.US dollars than gold started floating than it was. Now what the US did was that there was really very little possibility that people from all the countries would come together and convert the US dollars into gold. But there was a situation when this could happen.That everyone together demands to buy gold by giving US dollars and that situation was that if the price of gold increases in the gold market outside, then this thing can happen like suppose you have 1 $, US is saying that in exchange for 1 $ it will give you 28 grams i.e. ounce of gold. Whereas urer of the United States. in the gold market outside, if you start getting 40 grams or more in exchange for $ then what will you do? Buy cheap from the US and sell it at a higher price in the gold market outside.This will benefit everyone a lot.So the US had to take care that the rates of the gold market outside should remain around the US dollar, otherwise it would get into big trouble and this was the reason why keep them around what the US dollar is offering because the price of gold in the gold market fluctuates depending on the demand and supply.If more gold comes into the market, if the demand decreases, gold will become cheaper. And if less gold is left and demand is more then gold will become expensive and this fear was very big for US.Those who had taken many debt from it, made a pool of their gold and kept it in one place and after that, what do they do in London is – they start manipulating the demand and supply of the biggest gold market in the world, meaning that if the demand for gold increases then these people start selling gold in the market and if the demand decreases then they start buying gold in the market. They used to give and buy, but their main objective was to keep the dollar rate around and to maintain the demand and supply, but by the year 1967, the US had created a pool of gold, in which some of the countries when the losses started, these countries got frustrated and came out of this pool, then the plan of the US also stops working in a way, the US gets stuck in a problems
After this incident, the US was so confused that The US turned the phone inside the UK and convinced of the Queen of London, took the proclamation and closed down the gole
exchange market of London which means that the whole story of demand and supply has ended, now no one can buy gold there. And no one could sell it, and at the same time, the gold reserve of the US also started decreasing.The gold reserve of the US had reached such a low level by 1960. Along with this, the President of the US became Richard Nixon had started bullying the other countries a bit that they should not convert dollars into gold, then all these incidents were happening like the London market was closed, after that Nixon was pressurizing them a bit that If they did not convert then this thing backfired on them and the rest of the countries became insecure and what they started doing was giving dollars and taking gold of the countries became insecure and what they started doing was giving dollars and taking gold instead, so all these things turned out to be a disaster
for the US. And when all these things do not work out, on August 15, 1971,President Nixon releases Executive Order No. 11615 and blaming the international speculation, says thatthe convertibility of the US dollar into gold means that as of today’s date they will not get gold in exchange for dollar the convertibility of the US dollar into gold means that as of today’s date they will not get gold in exchange for dollar I’ve directed secretary connley to suspend temporarily the convertibility of dollar into gold or other reserve assets The above words are told by the president of the us at that time Whole world was shocked, all the trades were taking place in dollars. The debe taken were to be returned in dollars. Oil was coming in dollars, everyone’s reserves were in dollars and it was a shock for the world to say this, that is why this incident is called Nixon Shock. After this incident, the countries did not know what to do, understanddistributed 10 lakhs, some have written 5 lakhs and later.it is found that the check is there but they cannot get it encashed. So now people what people are doing it is found that the check is there but they ajpute cannot get it encashed. So now people what people are doing is giving and taking goods to each other using the same cheque, and the biggest problem faced by all the countries was that even if they get angry and say that we will not use the dollar, then they will not use the dollar. So they did not have the solution for what is the alternative.Now what Saudi had here also reaches to the US that we are collecting dollars from oil by selling dollar and now you have done such a thing that now we are not even converting. Can you get the value of the dollar converted into gold now? What is left? So the US told Saudi that there is no need to take tension. Keep selling the oil you are selling in dollars as it is and the contracts. The U erica through dollars you are getting fro selling oil. You invest that dollar in the US.You can buy our resources with the same dollars and get them brought to your country. You invest in our bonds and our companies.We will help you in every way. You are getting US dollars by selling oil will not be bad for you, keep doing this without any worry and take the oil in US dollars only. Now Saudi also had a compulsion.There was no solution to this thing, so they agree. Then the dollar that comes from selling oiland the dollar that is left after taking out all the expenses, which these countries invest inside the US,is called petro dollar. You must have heard this word. In the news, this thing was a big victory for the US because if other countries want oil then they will have to maintain the US dollar and the US dollar will remain relevant in the market and there was no other alternative. Now the decision was taken that Oil Be will be sold only and only in US dollars. There were some Arab leaders who openly protested that we will not accept that oil will be sold only and only in dollars and whenever such that we will not accept that oil will be sold only and only in dollars and whenever such cases have come, the US, being its military super power, took advantage of it and silenced those voices in different ways, like in the year 2000, Iraq’s President Saddam Hussein had refused to use dollars. buying ju reached Saddam Hussein had started selling oil in Euros instead. All the transactions
of the Nation’s Oil for Food Program were started in Euros. They collected up to 26 billion Euros in exchange for about 3.3 billion barrels of oil,but due to this, Saddam Hussein was overthrown and hanged. After this, Libya’s Gaddafi proposed the idea of leaving the dollar and creating a unified African currency.Libya plays a very important role in the global oil market.This thing was considered a big challenge for the US dollar, according to experts, but his country Civil war was started and gaddafi was overthrown.If you remember, in December 2015, the emails from Hillary Clinton’s private email server were leaked. One of the emails related to this was caught, which was very important for her. The same close attorney Sydney had sent, all the things were written in it, how Gaddafi is using Euro instead of US dollar, you pause once and read it.Iran, which at that time had reserves of 126 billion barrels of oil, it had world’s almost 10% of oil reserve and the second The largest natural reserve. Iran sets up IOB i.e. Iranian Oil Bourse in its 3rd Development Plan 2000 to 2005.In this it was asked to use Euro and said because their trade 45% was happening with European countries. So Iran said that we will accept in Euro, this will benefit us, but what happened to Iran in future and what is the situation now, you know that. US has imposed so many sanctions on the whole of Iran. This plan also stopped at the same time. main Later, you had already seen the condition of crypto. So see, what I mean to say is Cert that in an unset communication, everyone had already seen the condition of crypto. So see, what I mean to say is that in an unset communication, everyone knew that standing against the dollar means directly standing against the US. Standing against a super power and a nuclear power and US had set all these examples and this is the reason why anyone thinks 10 times before messing with US. Along with this there was one more thing which was SWIFT network through which the dollar used to get further advance. Now what is this SWIF network? So see, like now when you transfer money from one bank account to another bank account, it is not that a person fills money in the car and goes to another branch to give that money. It is simply digits that move from here to there and we say that the money has been transferred and for its settlement we need unique codes like IFSC code and other details. Similarly, when someone has to do an international transaction, then for that also A secure communication channel is needed so that international banks can know from which bank to reflect the money. Earlier, what used to happen was that TELEX was used, there was an analog system, it was used and the details of the bank were sent manually that money is to be transferred from this account to this account, but after this, comes SWIFT network its simply a secured automated messaging system that tells the international banks that which country’s which branch’s bank
wants to transfer the money to and when SWIFT Sends the message securely After that the money is transferred Let me explain with an example What I want to say To send money to someone who is in Singapore, Then I first want to go to the local bank SBI.I will give them the SWIFT code and other details so that SBI will know that money has to be transferred to this account of a man named Vikas sitting in Singapore. Now if SBI has direct integration with Bank of Singapore, then the money will be transferred immediately and Vikas will get it but if it is not there, which is not the case in most of the cases, then in such a case, a correspondent bank is required which is in the US, they take the SWIFT code and details and convert the entire transaction into US dollars and your transaction is complete. Even if you are not able to understand then there Is no problem. Understand SWIFT network as, if any country Falls out of this network Then it will not able to do international transaction. It won’t be able to do any transaction. Its foreign funding etc., all that will stop, import export will be affected, even Those who make money from YouTube That money will also not reach them. Removing a country from swift bank is a kind of dropping a financial Nuclear bomb and the complete control in the system of this SWIFT net is indirectly of the US. There are about 2400 shareholders in it and these 2400 shareholders form 25 boards of directors in which the members are from these countries. Belgium, Canada, France, Germany, all these members live there,but the entire control over the entire system rests with the US in an unset communication. So if the US wants, it can remove any country from this entire system whenever it wants, like Russia. Earlier, they had expelled Iran, due to which there was a huge loss for these two countries. This is such a big thing that if it is imposed on any country overnight then its economy will come to the ground overnight. All these reasons are that US has weaponized the dollar US gets a kind of geopolitical advantage due to dollar which causes bigger damage than its military power, that countries do not follow the US, if the US wants, it can be defeated overnight with the help of the dollar
bringing that country’s economy to the ground overnight. Actually what US does is in the news that – US imposes sanctions. You must have heard many times US has imposed sanctions on this country or have imposed sanctions on this particular thing.US imposes sanctions in different ways, one is primary sanction and the other is secondary sanction. What does the US do in the primary sanction is – it clearly refuses its companies, institutions and citizens to do business with that particular country. Then the companies of US retreat from those countries and when US companies do this, along with them, European companies also retreat and what happens is that the stock market of that particular country falls. Investment stops due to loss, no one invests in the sanctioned countries. The companies of US and Europe have a huge influence in the whole world. When they withdraw from any country, then the rest of the countries look at them. Those companies also run away from investing because when the US imposes sanctions then it is not known where the matter will stop. It is not a big deal that in future SWIFT may be banned like they did in the case of Russia, they have banned Russia from SWIFT network. We had just thrown out the Ukraine war that had taken place at this time and in such cases, even the biggest countries and their companies fall to the ground because they are not able to sell their goods and even if the goods are sold, the money is not transferred. Secondly, what does the US does is-it imposes secondary sanctions anyone who trades with the country on which the sanction is imposed, is also sanctioned. This is called secondary sanction, so what does it mean?That is, the country on which secondary sanctions have been imposed gets isolated from the entire international trade, its funding stops, like what happened with Iran, they had imposed secondary sanctions on Iran, India had an advantage in taking oil from Iran. But even after getting profit, India stopped in India could not buy oil from Iran, whereas later on Iran made it cheaper. The price of oil was being offered cheaply in the market but even after that India was not able to buy it. So basically, if you look at it, the fight was between US and Iran. The sanctions that were imposed were on Iran, but the loss was to those countries those who have to face this whole complex have no meaning and without doing anything wrong, inflation increases in those countries too, oil prices increase, and this advantage is available only to the US. If India wants it can also impose suction and announce that we have imposed sanction on Pakistan but there is no dependency of Rupees in the global market, nor does India have any system like SWIFT network. Right now UPI is moving forward slowly. But there is still time for that, that’s why the impact that happens is that the US sanctions are the highest. The costing of US sanctions in the whole world is very heavy on the people. Just now when US had imposed sanctions on Russia. So, all the countries had retreated but India still bought oil from Russia. Actually, US has to suffer a little from India because of China. This is because US sees India as a counter to China, Hence nothing much happened to India. But if any other country had done this, it would have faced problems. What I mean to say is that the US’s economic power, which is more than its military power, creates problems and if someone tries to weaken this economic power then their military power comes out and at present no one has any solution for this thing, but the swift ban imposed by Biden on Russia on Ukraine war in a way experts believe that they are On their feet. It is like throwing an axe, because not only Russia has been sanctioned due to this, everyone else has also suffered a lot and this is the reason why other countries are also looking for alternatives to this particular thing. For the last few months, other countries are also facing this sanction. Being troubled by the dollar, everyone from China, Russia, Argentina, Brazil to South Africa is trying to reduce their dependence on the dollar. It is not possible to give it up completely, but they are trying to reduce it and this is being discussed in the news. The name has been given as de- dollarization. China reduced It’s US bonds and sod them currently, Iraq, which is a big oil supplier, said that we will sell oil in Yuan. Shanghai Corporation Organization also made a statement that they will use the local currency. Saudi and China did their first transaction in Yuan due to which US got very upset. Back to back meetings were also held in US and Saudi. Russia has also announced that it will reserve the money coming from oil in Yuan currency. India and UAE have also made an agreement that we will trade in our currency but experts believe that it is not possible to outcast US in this manner. This happens every 10-15 years when all the countries get excited but Nothing can be done practically. If seen, one is Yuan and the other is BRICS Talk shared currency. These two can become an alternative to the dollar and can give competition to it. See Brazil, Russia, India, China and South Africa, together they have created BRICS. In the next year, if more countries will also join, then in this they have said that by combining all the currencies of BRICS countries, they will create an alternative of one dollar, like what happens now, there is an SDR inside the IMF which contains the currencies. They have weightage, they have points, like the weightage of US dollar is 43, points are given after looking at import, export and trade power and many other things, such BRICS countries are saying that they have mixed the currencies of all the countries and follow this weightage system, like, we will create a currency which will be named BRICS currency and its symbol will be beta. Now will this be possible or not? comment your opinion