Chapter 22 of the textbook discusses how the United States weaponized the dollar standard after 9/11, targeting hostile states. However, since the article was written in 2015, there has been a movement called de-dollarization created by numerous countries who want to remove the dollar as the world standard. The BRICS nations, including China, India, and Brazil, are leading this movement in response to the U.S. weaponizing the dollar by refusing Russia reserves from the World Bank. On the other hand, Chapter 27 of the textbook criticizes IMF policies, comparing them to pushing a rowboat into rough seas without proper equipment. The majority of IMF policies imposed on countries in need often worsen their economies since underdeveloped countries lack the infrastructure for a free market economy. This has been seen historically with the Marshall Plan in Eastern Europe and FDR's New Deal in the U.S, which provided consistent monetary funding to build a stable base economy before implementing free market ideology. There have been significant economic changes since World War II, with China surpassing the U.S. in market exchange rates and advancements in technology and research now dominated by American companies like Google and Facebook. The global market has faced challenges such as a shrinking trade footprint after the 2008 financial crisis and attacks on the U.S. payment system after 9/11.
1 comment:
It is incredible how the weaponization of a currency can really hurt other economies. This can currently be observed in Russia as banks will not give them money as the US has forbid Russia from using the USD. This same principle can be held true in a different way through the IMF. The IMF is taking small undeveloped countries and implementing a global economy when these countries do not have the infrastructure to handle it. The implementation of these policies sends them into economic collapse and makes them worse off than they would've been without the IMF's help.
Post a Comment