Trump's confidence in the global tariff war is the hegemony of the US dollar. Printing green paper can be exchanged for real gold and silver material goods from all over the world! The stock market evaporated 6 trillion in two days. Is it possible? If you play with him, it's real! If you don't play with him, he can only entertain himself!
It's time for the United States to entertain itself! ! !
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 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 buy 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 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 closely to take advantage of it and try their best to maintain the gang leader's position. In order to defend the hegemony of the US dollar as the world's sovereign currency, the US military is willing to 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 developed economies with a per capita income of more than 30,000 US dollars live a hard life? The profits of large companies in these countries go into the pockets of their controlling shareholders. Can ordinary 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, eventually 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 reclaim 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
Brief The rise and fall of the New York stock market has nothing to do with the economy, but is 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 in their own 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 strong enough. Otherwise, it will be the fate of Saddam and Gaddafi.
The dollar financial system is supported by the US government (US military), public opinion, and a group of thugs who are accomplices 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 escape 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 this.
In fact, Apple's revenue in 2021 was $378.35 billion, far less than its stock market value. What's even 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 doesn't have this huge sum of $2.33 trillion 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 just because this huge sum of money is not real, or is just virtual monetary capital. Therefore, it is very interesting to see how this dilemma will be 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, and Nasdaq will hand this check to Apple to cash the stock market operation transaction.
If Apple uses this money to buy Canada, there is no doubt that it is completely possible in principle! But in reality, Canada is not willing to sell to Apple and will not allow such a transaction to happen. So Apple will sue Canada in the International Court of Justice for violating international free economic financial and/or trade laws, and at the same time ask the U.S. government to intervene in the deal.
Two possible scenarios are: 1) The International Court of Justice rules in favor of Apple, so Apple will acquire and own Canada; 2) The court dismisses Apple's case, making the deal impossible. But wait. In the second scenario, the U.S. government can intervene in the case at Apple's request, and it can use enforcement law to force the deal to be completed. What if Canada refuses to deal with Apple, even though Apple is willing to pay Canada much more than its GDP value in US dollars? The U.S. government can choose to use force to force the deal to be completed. 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 scenarios can be repeated in this way until one day they encounter a tough country like Russia. Although its GDP is much smaller than Apple's market value, Apple cannot buy Russia with a high price unless the United States defeats Russia and forces it to accept a deal it is unwilling to make.
