Washington’s Financial Currency War on China: The Eclipsing of the US Dollar by the Yuan
By Mahdi Darius Nazemroaya
Global Research
August 31, 2015
The Chinese are in the process of displacing the monopoly of the US dollar. They are dropping their US Treasury bonds, stockpiling gold reserves, and opening regional distribution banks for their own national currency. This will give them easier access to capital markets and insulate them from financial manipulation by Washington and Wall Street.
Fearing the eclipsing of the US dollar and the Bretton Woods system by a rival financial architecture the US response has been an attempt to damage the Chinese markets and increase the value of China’s currency. China has responded through regulations in the market and then quantitative easing of its currency to maintain the low prices of Chinese manufactured goods and exports.
Beijing’s quantitative easing is a reaction or response to the financial manipulation of Washington and Wall Street. Additionally, Washington never thought that the Chinese would respond by dumping US Treasury bonds. Instead of the hysteria about the Chinese economy, «the impending collapse of the US dollar should be getting all of the attention of investors», one US economist (Peter Schiff) has warned. Schiff’s voice is one of many analysts saying that the talk about the Chinese economy faltering is exaggerated and bad spirited.
Financial War against China, Russia: America’s War against the «Community of Destiny»
As the financial architecture of the world is being altered by China and Russia, the US dollar is gradually being neutralized as one of Washington’s weapon of choice. Even the monopoly of Washington’s Bretton Woods system formed by the International Monetary Fund (IMF) and World Bank is being directly challenged. Although they do not constitute alternatives to neoliberal economics, the BRICS News Development Bank (NDB) and Beijing’s Asian Infrastructure Investment Bank (AIIB) are challenging the Bretton Woods system through a rival financial structure.
The US Empire has been cognizant of the moves to establish a rival financial order. Policymakers in the Washington Beltway, the Pentagon, and Wall Street all watched the dual summits of the BRICS and Shanghai Cooperation Organization in the Russian city of Ufa with concern. Up to that point, they had been waging an information/propaganda, energy, financial market, currency war, and general economic war against the Russian Federation. Post-Ufa, they extended the financial market and economic war to China.
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