Michael Hudson explains why the rest of the world is attempting to free itself from the US financial and military hegemony that has dominated the post-WWII era:
A nationalist reaction against U.S. dominance is rising throughout European politics, and instead of America locking in its control over European policy, the United States may end up losing – not only in Europe but most crucially throughout the Global South. Instead of turning Russia’s “ruble to rubble” as President Biden promised, Russia’s balance of trade has soared and its gold supply has increased. So have the gold holdings of other countries whose governments are now aiming to de-dollarize their economies.
It is American diplomacy that is driving Eurasia and the Global South out of the U.S. orbit. America’s hubristic drive for unipolar world dominance could only have been dismantled so rapidly from within. The Biden-Blinken-Nuland administration has done what neither Vladimir Putin nor Chinese President Xi could have hoped to achieve in so short a period. Neither was prepared to throw down the gauntlet and create an alternative to the U.S.-centered world order. But U.S. sanctions against Russia, Iran, Venezuela and China have had the effect of protective tariff barriers to force self-sufficiency in what EU diplomat Josep Borrell calls the world “jungle” outside of the US/NATO “garden.”
Although the Global South and other countries have been complaining about U.S. dominance ever since the Bandung Conference of Non-Aligned Nations in 1955, they have lacked a critical mass to create a viable alternative. But their attention has now been focused by the U.S. confiscation of Russia’s official dollar reserves in NATO countries. That dispelled the thought of the dollar as a safe vehicle in which to hold international savings. The Bank of England’s earlier seizure of Venezuela’s gold reserves kept in London – promising to donate them to whatever unelected opponents of its socialist regime U.S. diplomats designate – shows how sterling and the euro as well as the dollar have been weaponized. And by the way, what ever happened to Libya’s gold reserves?
What has occurred is a change in consciousness. We are seeing the Global Majority trying to create an independent and peacefully negotiated choice as to just what kind of an international order they want. Their aim is not merely to create alternatives to the use of dollars, but an entire new set of institutional alternatives to the IMF and World Bank, the SWIFT bank clearing system, the International Criminal Court and the entire array of institutions that U.S. diplomats have hijacked from the United Nations.
The upshot will be civilizational in scope. We are seeing not the End of History but a fresh alternative to U.S.-centered neoliberal finance capitalism and its junk economics of privatization, class war against labor. The idea that money and credit should be privatized in the hands of a narrow financial class instead of being a public utility to finance economic needs and rising living standards is finally facing its reckoning.
It is right to celebrate historical American Independence. But it’s also important to understand that Americans are no longer free or independent. Which is the primary reason that America no longer serves as an ideal or a model for the rest of the world.