China’s Challenge to the Dollarized International Financial System

Image from “China’s Evolving Strategic Trade Settlement Framework” by Einar Tangen & Warwick Powell

Reporting on the efforts to dedollarize the global economy has been a Gym staple since its inception. What’s different today than in 1971 when the Outlaw US Empire’s dollar went from glod-backed to a 100% fiat currency is the advancement of technology that allows for competition to occur within the international financial system such that the dollar’s essential monopoly can now be challenged by an alternative whose pragmatic goal isn’t to eliminate the dollar but to offer another pathway. The need for an alternative was noted at the outset during the Bretton Woods Conference in 1944 that established dollar and Outlaw US Empire financial hegemony as WW2 came to its conclusion with JM Keynes proposing his Bancor System that avoided dollar dominance. In the years since 1944, many nations have suffered mightily from that dominance as meted out by the IMF or World Bank, as well as from the illegal sanctions—economic warfare—employed on select nations deemed “wrong”. A recent study by The Lancet reports 38 Million deaths from illegal sanctions from 1970-2021—a veritable holocaust caused by Outlaw policy because there was no alternative available to circumvent the sanctions. The end of that utterly gross fascist tyranny by the world’s supposed Guiding Light will be one of the most positive outcomes of the alternative system. There’re several well-known studies that have illuminated that horrid reality and informed a global public deliberately kept in the dark—The Shock Doctrine and Confessions of an Economic Hitman are two that ought to reside in every household.

Drs. Einar Tangen and Warwick Powell collaborated on “China’s Evolving Strategic Trade Settlement Framework,” an essay published at Mr. Tangen’s Asia Narratives substack. They report this and its mechanics:

Beijing is not building a single replacement for SWIFT or the Dollar. Instead, it is deploying a modular, layered settlement stack.

Yes, my short note is actually a promotion, an advertisement, for their outstanding essay. And it’s also a further promotion of their substacks, which I already recommend.

The transition from the Western Hegemony Era to what is promoted as the Multipolar Win-Win Era is already generating changes and conflict as the Exceptionalist Outlaws try to delay the inevitable. As one might expect, China is being very Chinese as it works to end Western Hegemony, a project that began 115 years ago with the 1911 Xinhai Revolution. Someone echoed an observation I made several years ago—China’s system is Capitalism with Confucian Characteristics.

Do, please, visit and read their essay so you can be up to speed and ready for what might emerge from next month’s BRICS Summit.

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