Has the US dollar began the AFOL age? – In depth – ✍️ Hisham Mahmoud Suleiman
For more than seven decades, the US dollar was the main engine of the world economy and the hegemony tool that Washington used to impose its will on other countries, but today it is confronted with unprecedented challenges that can weaken its grip and reshape the international financial system in ways that can change the balance of economic and military forces
Since the United States abandoned the Order Stone in 1971, the dollar has no more coverage, but Washington has found a more powerful alternative (Petrodollar).
With this system, Japan, China, India and Europe, has become the need to store dollars in its banks to buy oil, which has established the American currency site as a global tool of hegemony , but what happens if the equation changed?
What if oil countries decided to sell their oil with other currencies?
A dangerous question to which a Chinese economic expert answered by saying (if the Arab countries abandon the dollar in the sale of oil, the American currency will face a collapse which could push the American army to intervene to protect its interests)
The announcement by Saudi Arabia of the sale of oil in the Chinese Yuan in an economic agreement with Beijing is a detailed development.
The Saudi decision is not limited to the economy, but also brings clear political connotations. From Iran to Biden's refusal to respond to Saudi requests in terms of energy and defense
The Saudi reaction has decisively came the refusal of the crown prince Mohammed bin Salman the response to Biden's contact during the energy crisis and then refused to increase oil production to compensate for the deficiency resulting from sanctions against Russia and now A step that could weaken the domination of the dollar.
China has not only challenged the dollar on the energy market, but rather leads an economic and technical revolution which makes its superiority a question of time of the Silk Road Project to control the electric cars market 'Huge boom in technology and communications China quickly moves to world leadership
Europe itself is now aware that the United States is no longer the most reliable economic partner, Germany, which is considered to be one of the giants in the automotive industry, began to go to Electric vehicles to monitor the pace of Chinese floods after realizing that Chinese companies have become strong in this area.
The same goes for the technology sector, where America is faced with a great challenge in its attempt to contain companies such as Huawei, which has been able to develop technologies that strongly compete with 5G American networks and even have started to penetrate European markets despite the sanctions
The Russian war -ukrainian revealed the characteristics of a new global economic system of Russia, which faced serious economic sanctions which have evolved towards the sale of oil and gas in the ruble, which forced European countries to face his currency, which also weakened the dollar also
China, in turn, supports this change by developing an alternative financial system for the Swift system that America controls, which reduces Washington's ability to use sanctions as an effective economic weapon
All these variables push Europe to rethink its alliance with America with the high costs of energy, inflation and geopolitical tensions, Germany and France are looking for more balanced economic relations with China and the Russia of American pressure
The fall of the empires does not occur overnight, but it begins with progressive changes which finally led to the fundamental transformation of the dollar, which was once a symbol of American power today faces challenges that do not never saw her before.
If Saudi Arabia and the Gulf continue to abandon the dollar for petroleum sales, and if China is able to impose a new global financial system, we can witness a radical change in the coming decades of world powers .
History tells us that the great powers are starting to gradually decrease before the event that falls permanently comes permanently. Only days can answer
