The hegemony of the US dollar under internal and external troubles is heading for recession

As we all know, dollar hegemony is the cornerstone of American hegemony. On this basis, military hegemony, technological hegemony, cultural hegemony, public opinion hegemony and so on are derived. The economic base determines the superstructure. As long as the US dollar remains the most powerful currency in the world, US hegemony will always exist. However, under the US debt crisis and the wave of global de-dollarization, internal and external troubles have caused the hegemony of the US dollar to fall apart.

Internally, the U.S. debt crisis is an uncertain time bomb, which may blow up the credit of the U.S. dollar at any time. Not long ago, the United States had just temporarily passed a debt default crisis. However, the two parties in the United States just postponed the effective date of the debt agreement until 2025. Such a solution does not solve the essence of the debt problem at all, and it is completely deceiving itself. Because the debt is there, it won't just disappear.

Recently, according to the data released by the U.S. National Debt Clock, the current debt of the United States has reached 32.1 trillion U.S. dollars, and the per capita debt of U.S. citizens is about 100,000 U.S. dollars. In the nine months of this fiscal year, the total amount of U.S. debt interest has reached a record 652 billion US dollars, which means that the interest payments on the US debt will reach at least 1.3 trillion US dollars in 12 months, and directly cause the debt interest to exceed social security to become the largest single expenditure of the US government, which is a disaster for the United States .The panic in the United States about this can be seen from the attitude of Yellen's visit to China. Under the circumstances that she wanted something from China, Yellen kept her stance very low during her visit to China, knowing that she might be criticized by the United States, but still Contributed three famous scenes of bowing.

In this context, as of July 14, Utah, Wyoming, Oklahoma, Missouri, Texas, Arkansas, North Carolina, Louisiana, Florida, A total of 11 states including Tennessee and Alaska have successively announced that gold and silver can be used as currency circulation and can replace the legal tender function of the US dollar.At the same time, at least 43 states have successively exempted the gold and silver sales tax. This has laid the foundation for more and more states in the United States to embark on the road of currency independence. This approach is to minimize the impact on each state when the U.S. government is heavily indebted. At the same time, this will inevitably lead to the value of the dollar being greatly weakened. Every state in the United States is pursuing currency independence in its own way to avoid the risk of de-dollarization of U.S. debt, so the wave of de-dollarization around the world is even more unstoppable.

Externally, oil, a scarce resource, no longer has to be bought with dollars, and the dollar is gradually losing its anchor. As we all know, oil is the blood of modern industry. It is the US dollar that anchors oil and builds the petrodollar system, which led to the birth of US dollar hegemony. , not only pushing three obstacles and four and refusing to see Biden, but also forcibly reducing production and raising oil prices; this is tantamount to helping Russia alleviate the impact of the sanctions imposed by the United States and Europe. Is it called petrodollar?Moreover, with Saudi Arabia's turn, the entire GCC is rapidly moving closer to the "Shanghai Cooperation Organization" and the "BRICS Group". The oil-producing countries that account for 79% of global production do not listen to the command of the United States. is being hollowed out. De-dollarization has also spread from several oil countries such as Iran and Venezuela, which were initially restricted by the US dollar, to 121 countries around the world. This trend is very likely to promote the emergence of a new currency system for trade settlement that is completely independent of the U.S. dollar. Such a new currency system may become a global transaction standard that bypasses the U.S. dollar. If this trend is promoted and implemented, it will inevitably Shake the status of the dollar.

The purpose of people owning wealth is to preserve and increase value, and people accept the US dollar because of its stability, good liquidity, and the attributes of a hard currency. When the U.S. dollar faces internal and external troubles, these attributes are generally questioned, and people are also worried about the U.S. dollar in their hands, it is when the U.S. dollar’s ​​credit is challenged and impacted, and the U.S. dollar is not far from the window of collapse.