The direction of the Russian-Ukrainian war will determine whether the Federal Reserve can continue to assume the function of the world's central bank
The function of a country's central bank is to issue its sovereign currency (CURRENCY). For example, the Bank of Japan issues the yen and the Bank of England issues the pound. Although the yen and the pound are both sovereign currencies, they are by no means world currencies.
For many years, the Federal Reserve has assumed the role of the world's central bank, issuing US dollars and circulating them around the world. The US dollar is valuable and can be used to purchase material goods from other countries, whether other countries are willing or not. The US government, the US military, and the US media are the main forces to maintain the US dollar as the world's currency. Through US dollar financial operations, they can get something for nothing and exploit the material goods and wealth of other countries; its allies and followers follow the gang leader to take advantage of everything and try their best to maintain the gang leader's status. In order to defend the hegemony of the US dollar as the world's sovereign currency, the US military will fight and assume the responsibility of the world's police.
Behind the slogans of free financial capital markets, democracy, freedom, and human rights are bloody interests! Check it out, who controls Samsung in South Korea? ! Who is the controlling shareholder of TSMC? ! There is a reason why ordinary people in these developed economies with an average income of more than 30,000 US dollars have a hard life, right? The profits of the big companies in these countries all go into the pockets of the controlling shareholders. How can the people live a comfortable life? !
The direction of the Russian-Ukrainian war will determine whether the Federal Reserve can continue to assume the function of the world's central bank. If Ukraine, with the support of the United States and its allies, finally drives the Russian army out of Ukraine, recovers lost territory, and wins the war, the Federal Reserve will continue to assume the role of the world's central bank.
However, the trend of the Russian-Ukrainian war is developing rapidly in a direction that the United States does not want to see. Russia will not only forcefully take back the eastern Ukrainian territory that originally belonged to Russia from Ukraine, but may also annex the western Ukrainian territory and turn the entire Ukraine into a Russian state. As a result, the Federal Reserve loses its function of assuming the role of the world's central bank, and the hegemony of the US dollar will end. Without the US dollar, the currency of the followers (such as the British pound) will become paper.
God is fair, rewarding the diligent and punishing the lazy. Heaven will prevail.
The following is a post I posted some time ago, and I will post it again here.
Virtual economy: essence, results
Briefly, the rise and fall of the New York stock market has nothing to do with the economy, but is just a tool and means to harvest the wealth of other countries. If the financial capital generated by the virtual economy of the stock market is only played in the United States, it can only put the money of fools into the pockets of the stock god Buffett; the stock market cleverly and legally concentrates money in the hands of a few people, which is a zero-sum game. Only when the "dollar capital" generated by virtual finance goes to the free international financial market can it cut the leeks of other countries! If other countries strictly restrict the entry of dollar capital into their financial markets, they will not be cut! If international trading countries require trade in goods or trade settlement in local currencies, then the hegemonic robbery behavior of plundering the material wealth of other countries by relying on dollar financial operations will inevitably end! Of course, the prerequisite for not wanting to be cut is that the fists of such countries must be hard enough. Otherwise, it will be the end of Saddam and Gaddafi.
The dollar financial system is supported by the US government (US military), public opinion confusion, and a group of thugs who are accomplices to it and take advantage of it. Russia's special military operation against Ukraine only tore a hole in the dollar financial system. However, more and more countries will see through the tricks played by the United States and will inevitably get rid of the fate of being harvested by the dollar financial system.
Although the virtual economy created by the New York Stock Exchange has nothing to do with the real economy, financial manipulation through the stock market can generate a huge amount of virtual dollar capital or wealth, and the huge capital created in this way is unattainable and unattainable by physical production and services.
For example, Apple's market value on the Nasdaq Stock Market (May 26, 2022) is as high as 2.33 trillion US dollars, which is higher than Canada's GDP in 2021 (1.7 trillion US dollars). How is this possible? It is undeniable that the stock market figures show so.
In fact, Apple's revenue in 2021 was 378.35 billion US dollars, far less than its stock market value. What's more shocking is that if Apple wanted to, it could buy the whole of Canada with the money it cashed out from the stock market! Of course, Nasdaq does not have this huge sum of 2.33 trillion US dollars to pay Apple. Therefore, Nasdaq must ask the US government (or the Federal Treasury) for this dollar. However, the US government cannot refuse to give Nasdaq so much money simply because this huge sum of money is not real or is just virtual monetary capital. It is therefore very interesting to see how this dilemma is resolved. The US government can use its power to create this money for Nasdaq to fulfill its legal commitment to allow Nasdaq to operate a stock exchange. In theory, the US government can write a check for $2.33 trillion to Nasdaq, which in turn gives this check to Apple to cash the stock market operation transaction.
If Apple uses this money to buy Canada, it is undoubtedly completely possible in principle! But in reality, Canada is not willing to sell to Apple and will not allow such a transaction to happen. Therefore, Apple will sue Canada in the International Court of Justice on the grounds that Canada has violated international free economic financial and/or trade laws, and at the same time ask the US government to intervene in the transaction.
Two possible scenarios are: 1) The International Court of Justice rules in favor of Apple, so Apple will acquire and acquire Canada; 2) The court dismisses Apple's case, making the transaction impossible. But wait. In the second case, the US government can intervene in the case at Apple's request and it can use enforcement legal means to facilitate the completion of the transaction. What if Canada refuses to trade with Apple, even though Apple is willing to pay Canada far more than its GDP in dollars? The U.S. government can choose to use force to force the deal. What if Canada says no again? The U.S. government and its allies will publicly and strongly condemn Canada's illegal behavior in major media for a few weeks or so, and then use this as an excuse to invade Canada and force it to accept Apple's proposal.
So the deal is done. Apple will own Canada.
Obviously, similar situations can be repeated in this way until one day a tough country like Russia is encountered. Although its GDP is much smaller than Apple's market value, Apple wants to buy Russia at a high price, but there is no way. Unless the United States defeats Russia and forces it to accept a deal it doesn't want.
