There is another important justification for why a Third Edition of The Work-Standard needs to be written before the year is over. A few years ago, I was writing entire Blog posts and later Entries where I argued that Jeffersonian economic and financial hegemony vis-a-vis the US Dollar would someday meet its inevitable decline and eventual collapse. I asserted that bold claim out of a conviction that the one of the signs that the Empire of Liberty is in fact faltering is the overall performance of the US Dollar as Kapital.
For those who do not know or have forgotten, in the First and Second Editions of The Work-Standard, the US Dollar’s hegemony in the Empire of Liberty was propped up by the Bretton Woods System. Bretton Woods was a restoration of the old Gold Standard that characterized Western finance between the two World Wars, its reintroduction after 1945 securing the US Dollar’s position because it was backed by Gold at $35 USD per Ounce (at least, that was the initial arrangement). When the Death of Bretton Woods finally came in the 1970s, the Gold Standard was replaced by a “Debt Standard” where all Kapital was officially and formally backed by Schuld. Every Quantity of Kapital became backed by a Quantity of Schuld, both of which were created by a Central Bank and privatized commercial banks as part of the Fractional-Reserve Banking System.
What enabled the US Dollar to maintain its hegemony after the Death of Bretton Woods was the Jeffersonian Market Economy’s immense influence over the Empire of Liberty. Prior to the People’s Republic of China, there were only three countries that were on par with it in the late 20th century: the Soviet Union, Post-1945 Japan, and West Germany. Neither of those nations and China could “surpass” Jeffersonian America without simultaneously usurping the US Dollar. To do so meant diminishing the US Dollar’s presence in the holdings of the world’s Central Banks. It was because most Central Bank were encouraged to maintain US Dollar reserves that the US Dollar is still the Reserve Currency after the Death of Bretton Woods.
In recent months, serious concerns among the Jeffersonians of the Democratic-Republican Party have stoked fears that the US Dollar may in fact be facing a decline in influence. Last year, the number of US Dollars inside the foreign currency reserves of Central Banks fell by 8%. This means that the US Dollar’s influence has diminished and, if last year’s trend persists unabated, there is no doubt that the US Dollar will cease to be Reserve Currency. Its dethronement will undoubtedly be another step toward the inevitable demise of the Empire of Liberty.
What has caused the unexpected decline in the US Dollar’s influence? The obvious causes are the increased influences of the Euro, Ruble and Renminbi. While neither the Euro, Ruble nor Renminbi is in any conceivable position to usurp the US Dollar’s hegemony anytime, they are nonetheless contributing to its inevitable decline alongside Digital Currencies and Cryptocurrencies. It is unrealistic to expect the US Dollar to somehow lose its position within the next ten years; perhaps thirty, fifty or seventy-five years from now, but definitely not in ten years.
Regardless, the most likely scenario concerning the US Dollar is something akin to what has been happening elsewhere in the Empire of Liberty. The ongoing changeover away from Unipolarity and toward Multipolarity will make its presence felt financially and economically. Rather than a US Dollar or any one type of Kapital dominating Western finance, there would instead be a multiplicity of different types of Kapital. For Latin America, Africa, the Middle East, and Asia, this means being able to import goods and services without having a Central Bank’s reserves consisting mostly of US Dollars. Though not the most ideal arrangement, developing countries will at least have more options to choose from when it comes to foreign currencies. Outside the Work-Standard, “diversification” will be the motivation here.
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