The fight to dethrone the dollar
Attempts to challenge the dollar have only
strengthened its dominance
Dangers of dollar nationalism hang over the world
economy
Even more serious than Fed rate rises would be a
politically driven devaluation of the US currency
A rising dollar spells trouble for investors
It may feel like a good thing – but a strong greenback
comes at a considerable cost It’s not right for poor countries to fund the rich
https://www.theguardian.com/commentisfree/2024/apr/24/the-guardian-view-on-globalisations-discontent-its-not-right-for-poor-countries-to-fund-the-rich
As TS Eliot put it, “between the idea and the reality … falls the shadow”. A paper out last week calculates that the bottom four-fifths of humanity finance the richest fifth to the tune of $660bn a year. The reason, say Gastón Nievas and Alice Sodano of the Paris School of Economics, is that wealthy countries have become the world’s bankers, able to squeeze debtors. Poor nations borrow in rich-world currencies because they run deficits in energy and food, while exporting low-value goods relative to their imports. Markets are liberalised in poor countries and profits flow to the global north.
The US is the biggest winner, with the eurozone being a close second, draining $160bn annually from the poor. Every year, developing nations forgo 2%-3% of their GDP, sums better spent on education, health and the environment. Globalisation’s big winners in the developing world have lost out too. The gains of the G8 group of industrialised nations are “paid by trade surpluses and financial losses of the Brics”.
Related:
https://wid.world/news-article/the-us-exorbitant-privilege-has-become-a-rich-world-privilege-new-study-calls-for-a-reform-of-the-international-monetary-system/
https://www.theguardian.com/commentisfree/2024/apr/24/the-guardian-view-on-globalisations-discontent-its-not-right-for-poor-countries-to-fund-the-rich
As TS Eliot put it, “between the idea and the reality … falls the shadow”. A paper out last week calculates that the bottom four-fifths of humanity finance the richest fifth to the tune of $660bn a year. The reason, say Gastón Nievas and Alice Sodano of the Paris School of Economics, is that wealthy countries have become the world’s bankers, able to squeeze debtors. Poor nations borrow in rich-world currencies because they run deficits in energy and food, while exporting low-value goods relative to their imports. Markets are liberalised in poor countries and profits flow to the global north.
The US is the biggest winner, with the eurozone being a close second, draining $160bn annually from the poor. Every year, developing nations forgo 2%-3% of their GDP, sums better spent on education, health and the environment. Globalisation’s big winners in the developing world have lost out too. The gains of the G8 group of industrialised nations are “paid by trade surpluses and financial losses of the Brics”.
https://wid.world/news-article/the-us-exorbitant-privilege-has-become-a-rich-world-privilege-new-study-calls-for-a-reform-of-the-international-monetary-system/