Honestly, I think you’re missing some of the messages in the international scene lately. Not sure if you caught Carney’s speech at Davos, which received a rare standing ovation, but one of the points he made quite explicitly was that the tools of the past in terms of integrated financial markets and systems, had become risks for nations as a result of US actions (though of course he avoided ‘saying’ US as then Trump would absolutely shit his pants).
Put slightly differently, think about it from Canada’s perspective as a representative of the “majority” of countries outside the states who are not hegemonic in size / attempted reach (USA, China, Russia, India being the primary hegemon set presently – the EU partly in the mix but different due to segregation). As a country, you’ve had good relations with one of those hegemons for a long time, and thought it was all good. You integrated systems. Then that hegemon declares you a 51st state and starts using that very integration as a way to attack your nations sovereignty – it’s gone from being a modest benefit, to being an existential threat.
Do you think the solution is “Let’s find a new hegemon to supply a world currency! I’m sure the next unilateral superpower will be better!”, or do you say “Fuck hegemons and the idea of a world currency. International trade is now moving into a period where negotiations between nations will occur on a more 1 to 1 level without intermediaries through some hegemonic power”.
That’s where we’re heading, is my guess. I mean, the middle powers have explicitly stated it, and they all applauded it. And the US president’s response to that statement was “YOU DONT LIVE WITHOUT THE US!!!” and many idiot Americans thought it a great comeback to having been called an aggressor/bully nation. Like I’m 100% sure Canada and Mexico are working on their own trade agreement right now, cause they’re looking at USMCA and know Trump’s gonna fuck with it. So they may as well just trade direct with each other, and sort out a settlement process that avoids the USA/US Currency markets.
Honestly, I think you’re missing some of the messages in the international scene lately. Not sure if you caught Carney’s speech at Davos, which received a rare standing ovation, but one of the points he made quite explicitly was that the tools of the past in terms of integrated financial markets and systems, had become risks for nations as a result of US actions (though of course he avoided ‘saying’ US as then Trump would absolutely shit his pants).
Put slightly differently, think about it from Canada’s perspective as a representative of the “majority” of countries outside the states who are not hegemonic in size / attempted reach (USA, China, Russia, India being the primary hegemon set presently – the EU partly in the mix but different due to segregation). As a country, you’ve had good relations with one of those hegemons for a long time, and thought it was all good. You integrated systems. Then that hegemon declares you a 51st state and starts using that very integration as a way to attack your nations sovereignty – it’s gone from being a modest benefit, to being an existential threat.
Do you think the solution is “Let’s find a new hegemon to supply a world currency! I’m sure the next unilateral superpower will be better!”, or do you say “Fuck hegemons and the idea of a world currency. International trade is now moving into a period where negotiations between nations will occur on a more 1 to 1 level without intermediaries through some hegemonic power”.
That’s where we’re heading, is my guess. I mean, the middle powers have explicitly stated it, and they all applauded it. And the US president’s response to that statement was “YOU DONT LIVE WITHOUT THE US!!!” and many idiot Americans thought it a great comeback to having been called an aggressor/bully nation. Like I’m 100% sure Canada and Mexico are working on their own trade agreement right now, cause they’re looking at USMCA and know Trump’s gonna fuck with it. So they may as well just trade direct with each other, and sort out a settlement process that avoids the USA/US Currency markets.
Good point! I hadn’t really put much thought into the exact replacement, to be honest. The main point is that the USD is quickly falling out of favor.