Since 1944 the currency of the United States has been used as the primary reserve asset in the international monetary system. The use of a single domestic currency such as the USD as the global reserve currency has caused large systemic imbalances in the global financial framework. These imbalances have led many to believe that the dollar is faced with an imminent collapse and hyper-inflation. This first installment to The Economic Transition Papers posits that the dollar will not die, but will in fact be -re-engineered and integrated within a multilateral financial architecture which has been in development since the financial crisis of 2008.
A broad understanding of this transition from a unipolar framework to a multilateral framework is essential for not just Americans, but all interested investors around the globe. The coming depreciation of the USD can be easily misunderstood. But there are also opportunities and benefits to a depreciating dollar, some of which are covered here.
All countries, including both the United States and China, recognize the need for a supra-sovereign (non-domestic) asset which can be used as the international reserve currency. The Special Drawing Right (SDR) of the International Monetary Fund is the chosen asset which the multilateral framework will be build around.
This series of publications, titled The Economic Transition Papers, will be segmented into 3 stages, being Multilateral Stage One, Multilateral Stage Two, and Multilateral Stage Three. Each segment will contain various publications dealing with specific aspects of the transition from a unipolar USD based financial system to a multipolar framework based on the Special Drawing Right (SDR) of the International Monetary Fund.
This first installment, E-Publication – 001, will deal specifically with the Reengineering of the Dollar and should bring a more fundamental understanding to the role which the USD will play in the coming years. It is important for factual information to be presented about aspects of the dollars relationship with the external multilateral mandates. Lack of knowledge and understanding will only spread fear and confusion.
The alternative media has been promoting a false ideology of dollar collapse, while the mainstream media have failed at informing the larger population of the actual mechanisms and machinations of the economic transition. These papers will attempt to bridge the knowledge gap between both.
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