Four Phases of US Monetary Influence

The US is in it's third phase of monetary history in regard to its international influence. The key is the US dollar serving as the international reserve currency (the US dollar is accepted like gold for exchanges between countries with different currencies). This was established at the Bretton Woods conference following World War II.

First, the US dominated the world when the other nations were in post-war shambles or underdeveloped. The US could give money away to help build other economies, and the other nations naturally accepted US policies. Under the Bretton Woods System the US dollar was placed deliberately at the center of the system, with the US government guaranteeing other central banks that they could sell their US dollar reserves at a fixed rate for gold if they so desired. (The dollar was literally "as good as gold").

Second, after the gold standard collapsed in 1971, the US still had economic muscle and could effectively bribe other nations to go along with its imperialist foreign policies.

Third, the US economy has become hollow, having a huge trade debt, government debt and personal debt. Jobs and corporate head quarters have gone offshore, taking the tax base with them, making it nearly impossible to pay off these debts. The US is starting to depend on military force to get others to go along with its imperialist foreign policies.

The final phase will be the collapse of the dollar and it's rejection by other nations as the international reserve currency. This is already happening. It's just a matter of time, and we might be very close.

The following video discusses the final phase.



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