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What Happens If We Ditch The Dollar?

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@chekohler
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Hey Jessbankers

The world is run on the almighty dollar, ever since the dollar standard was introduced in 1971, we've seen the USD become as good as gold. Unfortunately, it was never going to be as good as gold; it's only conflated with the properties of gold.

The ability to print currency when needed is by no means a bad thing, but it's always a slippery slope once you start, it's an easy fix to a lot thing, especially early on in a currencies life.

Having the dollar act as gold for the rest of the world sot o speak allows them to have a money multiplier that can manipulate markets and extort value from the rest of the world.

The USD holding the world hostage

Since the Bretton woods agreement, we've seen the world use the dollar for all international trade. Any debt, any commodity purchases any global settlement is all done in the dollar.

The rest of the world's currency is either hard pegged like Hong Kong Dollar or Yuan or soft pegged through the forex market, but at the end of the day, all currencies are pegged to the US dollar.

This gives the dollar so much power, as purchasing power has to flow in and out of their system and making the world desperate to use this settlement layer. This need for dollars allows the US to export inflation and has given it an advantage of the world.

The problem is the world is so desperately reliant on the dollar for world trade that the US knows this, they understand for the system to unravel, it would require a better option, and there hasn't been one until now.

Ditching the dollar

As you can tell having something seen as good as gold that you can print out of thin are and create your own little scheme of moving the worlds purchasing power into anyone close to the printing press allows the US to corner the market in any sector they so choose, they have done it tech, finance, for a time in energy, in military and more.

Ditching the dollar would unravel this system so fast since many countries like Iran, Venezuela and many others are at the mercy of the dollar, they can now if they were smart would move to a new settlement layer in buying or mining BTC.

Bypassing the dollar may not do much now, but as we start to eat into the fallacy that is the USD it can start to have widespread effects.

The more countries, companies and individuals using BTC to make trades internationally and avoid the dollar allow for dollars to become stagnant locally, it allows less buying pressure on the dollar and finally the dollar would start to show the real inflation.

If the dollar starts to lose its purchasing power as fast as currencies pegged to it, we'd see the printing press actually show its effects. As you may know, American manufacturing has been offshored in many regards and they've been exporting dollars to get a lot of critical products and services.

If the dollar were to show its real inflation, that exporting of dollars would expose the fraud as there is less demand for dollars but more and more dollars on the market.

Local manufacturing would need to come on board, become competitive to remain profitable and the US would need to compete in production once again.

Even the playing field

Ditching the dollar won't solve the world's problems, but it would go a long way to even the playing field. Allowing the labour, commodity and resource arbitrage of the world to have real price discovery will bring in far bigger efficiency gains and we'd have global trade with better global competition.

Have your say

What do you good people of HIVE think? Can we get off dollar dependency?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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