July 17, 2024
Dollar Bills

On the eve of The Fed’s big decision to hike rates 75bps or 100bps in an effort to shock the system and tamp down out-of-control inflation, no lesser entity than the CCP-backed Global Times penned an editorial attacking US monetary policy, entitled: “The strong dollar should not become a sharp blade to cut the world.”


The editorial begins by noting that tomorrow’s rate hike will likely further strengthen the US Dollar, which “for many countries in the world,” China says, “might be the beginning of another nightmare.”

“A super strong US dollar and the fall of other currencies will, to a certain extent, ease the scorching inflation in the US economy, but the world will have to pay for it.

And the dollar’s strength has pushed Asian FX markets down hard to their weakest since 2003…

The Global Times then exclaims that since the end of World War II, the US has used dollar hegemony to carry out “financial looting” or “export crises” against other countries several times.

“As a widely popular phrase in the West goes, the US enjoys the exorbitant privileges created by the dollar and the deficit without tears, and used the worthless paper note to plunder the resources and factories of other nations

… while the political elites in Washington boast of the “myth of the American system” and take credit for “alleviating the crisis,” thousands of poor families around the world are being trampled by them.

And as the yuan tumbles, and Beijing’s attempts (through strong yuan fixes at a minimum) to defy gravity…

…the editorial points the finger directly:

World’s Problem

” Today, the dollar is once again the world’s problem. In a sense, it’s hard to believe that the “prosperity” of the US is clean and moral…

Washington keeps laying mines but never removes them, which will eventually explode the US itself. The incompetence of US financial policymakers has been exposed by the consecutive interest rate hikes that have contributed to the abnormal appreciation of the US dollar with the purpose of defusing the severe inflation. “

Now the anxiety and insecurity brought by the US dollar to the world have heralded the beginning of the decline of its hegemony – regarding Washington’s insatiable exploitation, Europe, Asia, the Middle East, and other regions have explored the path of “de-dollarization,” leading to the inevitable diversification of the international monetary system…

“…The instability and fragility of international financial markets have once again become prominent. It is precisely at such times that the international community should be more determined to cooperate and build a reliable, systemic and long-term multilateral international financial system. This cannot wait.