The Impending De-dollarization

 

part 01

तिथि: ज्येष्ठ शुक्ल नवमी, बुधवार, संवत्सर कालयुक्त, विक्रम संवत् २०८२ 

The economic cycle that began with Pound as a single reserve global currency, which after World war II was replaced by Dollar as a global reserve currency is seemingly coming to an end sooner than what many economists and experts previously thought of.

As one delve deeper into recent past, delinking of dollar from gold standard in 1971 itself was the clarion call to highlighting fragility inherent to market economy model nurtured by United States.

However, US somewhat successfully postponed the suspicion lingering on dollar at that time by embarking Petrodollar deals with the West Asian¹ countries; which allowed global market supply of oil to be transacted in dollars in lieu of US catering to security needs of those kingdoms. In addition, US also forced Japan to ink Plaza Accords in 1985 that provided much needed cushion to USD to remain as a tradable currency because the inflationary pressure on it was somewhat addressed for the significant period that followed the deal. However, it has negatively impacted the Japanese economy and it still faces the issue of stagnant growth since then.

After the disintegration of the USSR in 1991, the European nations (especially the western European bloc) were somewhat freed from their security concerns, therefore they become more inclined towards the economic growth, which was natural as within the scope of the 20th century they witnessed two world wars and a resource crunching cold war. However, the realisation soon came to dawn upon them of over reliance on USA for their security, economic growth and overall development.

In order to reclaim and exercise their sovereign rights as the nation, the European Union was envisioned, which also provided the power of collective bargain, common market and resource pooling and mobilization laying the foundation of inclusive, participative and resilient development framework.

The major reform that EU heralded was the formation of common European currency called Euro. This not only reduced their dependence on USD but also paved way for sovereign economic policies and establishing EU as one of the important pole in global political arena.

USA was sceptic of the growing popularity of Euro vis a vis USD as former was backed by the group of countries which were also a common market with population comparable to that of USA if not more. Thus, it leveraged its global status of “Sole Superpower” with respect to military might, Bretton Woods manoeuvring and hold on energy supply chains, to counter or discredit the Euro.

In Geo-economics its an open phenomenon that during crisis, majority bets on the available Hard currency with perceived future stability prospects and having some sort of credibility.

From 1990-2003, US allegedly fuelled the Yugoslav Wars, further it got Europe involved in the Gulf war, in addition it connived with communist China to purchase US treasury securities in order to maintain the global demand of dollars in return US facilitated China’s entry in WTO . Moreover, it framed its taxation rules in order to promote speculative investment, which inflated the Stock market indices, mainly led by emerging IT companies, which ultimately resulted in Dot-com bubble of 2002.

Moreover, the financial market crisis of Indo-china² nations during this timeframe also triggered the global natural proclivity towards parking investments in dollar denominated assets. Thus, Euro lost its prominence and it became an appendage to USD thereafter.

Notwithstanding, the temporary relief that USD enjoyed owing to uni-polar world order started to diminish down the line after 20 years. And the dot com bubble crash along with formation of Euro is now termed as the first step towards the de-dollarization.

Henceforth, in the subsequent articles, we’ll examine the causes that are rapidly encouraging multi-currency basket as reserve currency led multi-polar world order from 2030 and beyond.

1. West Asia is terminology used in Bharat for the regions known as Middle East by the Anglo Saxon nations. ↩︎
2. Indo-china is also known as South east Asian nations ↩︎

Life Hacks #07

तिथि: चैत्र शुक्ल पूर्णिमा, शनिवार, संवत्सर कालयुक्त, विक्रम संवत् २०८२  (हनुमान जयंती)

कोई भी संकट, दुविधा या प्रतिकूलता ईश्वर प्रकृति के माध्यम से किसी व्यक्ति को सिर्फ दो कारणों से प्राप्त कराते हैं:

प्रथम:  व्यक्ति को उसके प्रारब्ध से मुक्त करने हेतु ; 

द्वितीयः व्यक्ति को किसी और बड़े लक्ष्यों के लिए उद्यत करने हेतु।

मनुष्य जीवन अपने आप में अवसर है इसे मुक्त भाव से अनुभूत करें।

Life Hacks #06

तिथि: चैत्र शुक्ल चतुर्थी, मंगलवार, संवत्सर कालयुक्त, विक्रम संवत् २०८२

परिणय सूत्र अधिकारों से ज़्यादा कर्तव्य, सम्मति, समन्वय एवं विश्वास पर आधारित होते हैं।

आपका समर्पित व सत्यनिष्ठ होना ही आपके अधिकारों का मूल है। प्रकृति ने हर जीव, वनस्पति और निर्जीव संरचना को एक दूसरे पर निर्भर किया है जबतक वे अपना अपना कर्म ठीक से करते है उनका सुख से अस्तित्व बनाए रखने का अधिकार भी उन्हें प्राप्त रहता है।

Life Hacks # 05

दिव्यता कदाचित खोजने से नहीं अपितु धारणीय ध्यान के संयम से प्राप्त होती है ,

उसी प्रकार दृश्य संयोगों से नहीं अपितु दृष्टा के प्रारब्ध, संस्कार एवं कर्म द्वारा जनित चित्त की वृत्तियों से प्रेरित हो जीव को सत्यता के मार्ग पर अग्रसर करते हैं।

महाशिवरात्रि पर मंगलकामनाएं✨

Life Hacks #04

संबंधों में आप जितना विद्वेष, छल व अहंकार से स्वयं को रहित करते जाएंगे उतना ही आप जीवन की सार्थकता, सुख एवं आत्मिक स्वतंत्रता को प्राप्त होते जाएंगे 

Life Hacks #03

जीवन के उद्देश्यों को केवल एक ही मार्ग से प्राप्ति हेतु अभीप्सा करना, मनुष्य चेतना को संकीर्णता के दायरे में बांधने के सिवा और कुछ नहीं है।

व्यक्तित्व अनंत संभावनाओं का भंडार है उसे निष्कपट और सहज स्वरूप में पनपने देना ही आपकी संतुष्टि, सफलता, सुख एवं शान्ति का कारक होता हैं।

Life Hacks #02

Flow of emotions defines the criterion of ours' interaction with this universe both materialistic and subtle.

Sometimes, I wonder the need for this interaction but pondering over my inner world it emanates that yearn for expansion is the driving force behind this flow. When searching deeper layers of consciousness it seems this "yearning for expansion" is motivated by the inherent characteristic to experience the "unknown". What is it that differentiates between known and unknown; it seems "ignorance" is the veil of unknowns. 

Why there exist such ignorance?

This question has been thought upon by generations after generations but the boundaries of unknown seems to merge with infinity, so where this discovery would end!

Well, it depends upon the perception and also illuminates the fact that there exists limitations on ours' senses beyond which dependence upon theirs' judgement would prove to be futile. So how to cross this barrier!

We would ponder upon it in further threads to this series "LIFE HACKS"