“The reason the US wants the war in Ukraine is… the dollar”

“For months we have been hearing Washington ringing the alarm bell over what they referred to as the ‘imminent Russian invasion of Ukraine“. According to the most recent so-called “espionage” of USA, a full-scale invasion will take place this week. However, as some of us have been insisting for months that it will happen, no invasion has taken place, nor, I believe, is possible. “

Thomas Penn is an American citizen and has lived in Germany for many years. He was a non-commissioned officer in the US Army. He studied finance and management and has extensive experience as a financial markets analyst. Writes in Russia Today where this article also analyzes the attitude of the United States and the use of NATO in the recent tension on the border with Ukraine – Russia.

“Moscow, which has announced that its troops are withdrawing from Russia’s border with Ukraine, firmly denies having any intention of invading. But Washington, with her repeated accusations about an upcoming episode, for the deployment of its troops in Eastern Europe, seems determined to motivate Russia to make such a move. “The more Russian President Vladimir Putin refuses to accept the bait, the greater the despair in Washington.”

He continued: “Why is Washington – and consequently NATO and the EU – so obsessed with Ukraine? What do they hope to achieve? Once one understands the mechanism by which Washington derives its true power, its actions in relation to Russia become more comprehensible.

“What does Washington really want?”

“Let’s put aside all the accusations that Washington makes about human rights, democracy and sovereignty, because these are just issues that it uses as a cover and which it systematically ignores in order to achieve its goals. “What does Washington really want?” Penn asks rhetorically.

«He wants to confuse and ignite the issue of Ukraine in order to restrain Russia. But why does he want to restrict Russia? Washington is drawing its global power through its control dollarknown as the currency for the world reserve. This special regime allows Washington to accumulate huge deficits that do not in any way reflect America’s true productive capacity.

The US dollar has been the dominant currency in international trade since it replaced the pound sterling in the 1920s. Commodities such as oil, gold, basic metals and agricultural products are priced and paid in dollars. This created a huge global demand for the dollar, adding huge value to its value and created a strong demand for US bonds. All of this allows the US federal government to print trillions of dollars, borrow indefinitely and spend on abandonment.

The dominance of the dollar has given America enormous power worldwide, but now it is threatened more than ever as Russia, China and others challenge it economically. “Many are now seeking to lose their dependence on the dollar, as Washington has continued to abuse its position as the world reserve currency issuer over the past few decades.”

The attitude of China and Russia towards the dollar

“Russia and China, in particular, have drastically curtailed the use of the dollar,” he said. He continues: “In 2015, about 90% of their bilateral transactions were conducted in dollars. But since the start of the US-China trade war, this has dropped to 46% and is declining further rapidly. Even US allies and partners, such as Turkey and India, have begun trading their respective national currencies when it suits them. Countries are wondering why US financial institutions should act as intermediaries for international banking.

Beijing is actively encouraging the use of its currency, the renminbi, in trade, especially in the context of the huge Belt and Road initiative. With China recovering stronger than the other major economies from Covid-19, foreign capital has also rushed to the Chinese market as Beijing opens up financially.

Alexey Maslov, director of the Institute for Far Eastern Studies at the Russian Academy of Sciences, told the Nikkei Asian Review that Russia-China “de-dollarization” was approaching a “critical juncture” that could elevate their relationship into a de facto alliance.

The deep concern of Washington

“This alliance, and its threat to the dollar, is deeply troubling to Washington. “The current dollar-centric system cannot go on forever,” said Barry Eichengreen, a professor of economics and political science at the University of California, Berkeley. “A multipolar international monetary and financial system is coming, as the United States represents a shrinking share of the global economy.”

Goldman Sachs generals have predicted that there are now “real concerns about the longevity of the US dollar as a reserve currency”, while billionaire US fund manager Stanley Druckenmiller has warned that the dollar could cease to be the dominant world currency. reserve within 15 years.

Ironically, the growing use of harsh US sanctions against countries it does not like, such as China and Russia, has fueled this trend as countries seek new ways to finance trade without Washington being able to seize it. their money. “The United States, with its continued use of sanctions, is starting to cut its nose and abuse its face,” said Anuradha Chenoy, a former dean of the School of International Studies at Jawaharlal Nehru University in New Delhi.

Ms Nehru said: “… The United States government, as the issuer of the world reserve currency, is only interested in one thing: the multiplication of the dollar. This unique fact is all that one needs to understand in order to truly understand US foreign policy.

What does this mean in practice? It means that the US government, in consultation with the US Federal Reserve, has the ability to print the dollar at will… and can export its inflation to the rest of the world. Any nation wishing to engage in international trade, including commodity markets such as gas or oil, must maintain vast US dollar reserves to allow its purchases.

The world, in fact, acts as a sponge to absorb US inflation, allowing the US government to amass huge deficits that allow for a large military budget and enrich a very small portion of the US population to the detriment of not only the world population but and the American working class.

As for any nation that wants to get rid of the US dollar, we know very well what the US has in store for them δώ This is where the Russian Federation comes in. If one really wants to understand why the US establishment hates Russia under Vladimir Putin, all one has to do is understand the role of the dollar in the world. “Russia is an immediate threat to the spread of the US dollar.”

Russia’s attitude

“For its part, the Russian Federation has become quite resilient over the last 20 years and much less prone to any external pressure or influence. Russia is a sovereign nation that is not intimidated by the United States.

The United States cannot simply launch a military coup against the Russian Federation, as it did in Iraq and many other nations that have rejected the dollar’s hegemony. Russia now has the power to stop the spread of the US dollar. To return to the proportion of the sponge: Russia reduces the size of the sponge. This leaves the US government with fewer and fewer countries exporting inflation in dollars. “The smaller the sponge, the more desperate US foreign policy becomes, as US leaders try by all means to maintain their dominance of world power,” said Jawaharlal Nehru.

“Any nation that does not abide by the decrees of Washington and refuses to play the game of the dollar is confronted with a color revolution, a coup, a provocation or a brutal military intervention,” Penn said. Washington knows that if more and more of these dollars held in foreign exchange reserves become redundant, they will return to the United States to ease inflationary pressures there.

The nations of the world should have the sovereign right to choose the currency with which they choose to trade and not be forced, under the threat of the barrel of a US weapon, to use the US dollar.

That’s the real reason why Washington wants to draw Russian forces into Ukraine. Washington must try, by all possible means, to restrain Russia and then try to force it into subjugation.

But after decades of abuse, the current dollar-based monetary system is running out of steam. Interest rates have been artificially manipulated to zero, western central banks are monetizing debt through quantitative easing, and consumer prices are soaring as a function of monetary base inflation.

Washington will continue to do whatever it takes to maintain the dollar’s dominance, including using Ukraine and the Ukrainian people as cannon fodder in its efforts to provoke Russia and impose dollar hegemony. Washington wants to further isolate Russia from the West by calling it a violent aggressor. “I am convinced that Vladimir Putin will not be seduced.”