*Giventhatthedollarissoembeddedinthesystemofinternationaltransactions,theUnitedStateshasturneditintoatooltobleedothercountriesbycollectingseignioragerevenue.

*Toboostitsdomesticeconomy,theUnitedStatesoftenpumpsexcessmoneyintoglobalmarketsduringperiodsofeconomicexpansion,creatingtheillusionofaworldwideboom.

*Aggressiveinterestratehikeshaveledtoagloballiquiditytightening,resultingincapitaloutflowsandcurrencydepreciationinemergingmarkets.

(资料图片仅供参考)

BEIJING,April4(Xinhua)--TheworldisholdingitsbreathforasimmeringbankcrisisintheUnitedStatestriggeredbythespectacularcollapseofSiliconValleyBankandSignatureBank.

AcrosstheAtlantic,therepercussionsarereverberating.AsEuropeanbanks,includingSwitzerland"sCreditSuisse,edgeclosertoasimilarcrisis,concernsaregrowingthattheregionalcrisiscouldbecomesystemic.

TherealculpritforthefesteringcrisisistheU.S.FederalReserve(Fed)"smonetarypolicybasedontheU.S.dollar"shegemony,whichhas,onseveraloccasions,plunderedglobalwealth.

PeoplequeueupoutsidetheheadquartersoftheSiliconValleyBank(SVB)inSantaClara,California,theUnitedStates,March13,2023.(PhotobyLiJianguo/Xinhua)

PLUNDERINGWORLDWITHSEIGNIORAGE

AfterWorldWarII,theUnitedStatesdeliberatelyestablishedthedollar"shegemony.

Inthethirdquarterof2022,thedollarcomprisednearly60percentofglobalforeignexchangereserves.InJanuary2023,thedollaraccountedforabout40percentofinternationalpayments.

Giventhatthedollarissoembeddedinthesystemofinternationaltransactions,theUnitedStateshasturneditintoatooltobleedothercountriesbycollectingseignioragerevenue.

Witha100-dollargreenbackthatcostsonlyabout17centstoprint,theUnitedStatescouldreap100dollarsworthofgoodsandservicesfromothernations.

ThisphototakenonMarch16,2023showsasignageofCreditSuisseinGeneva,Switzerland.(Xinhua/LianYi)

JustasformerFrenchPresidentCharlesdeGaullegrumbledmorethanhalfacenturyago,theUnitedStatesenjoyed"exorbitantprivilege"and"deficitwithouttears"createdbyitsdollaranduseditsworthlesspapernotetoplundertheresourcesandfactoriesofothernations.

Fromthegolddollar,thepetrodollartothecreditdollar,andnowtothedebtdollar,overthepastdecades,theworldhasbeenwitnessingthebasisofthedollarasaninternationalcurrencyweakening.

Tosalvagethedollar"shegemony,theUnitedStateshasrecklesslyexhaustedallmilitary,financeandtrademeans,attemptingtocontinuouslyexportriskstoandreapbenefitsfromothercountriesthroughthelucrativedollarbusiness.

CREATINGGLOBALASSETBUBBLES

Toboostitsdomesticeconomy,theUnitedStatesoftenpumpsexcessmoneyintoglobalmarketsduringperiodsofeconomicexpansion,creatingtheillusionofaworldwideboom.

Aftertheinternationalfinancialcrisisin2008,theFedintroducedmultipleroundsofquantitativeeasing.

FollowingtheoutbreakoftheCOVID-19pandemicin2020,itimplemented"unlimited"quantitativeeasing,pushingglobalinflationtoa40-year-high,formingacolossalassetbubbleandexacerbatingriskstotheworldeconomy.

WhiletheoversupplyofU.S.dollarshasbrought"inflationarypressuresnotseeninageneration"totheUnitedStates,othereconomieswerehitharder.InFebruary,annualinflationinArgentinabreachedthe100percentmarkforthefirsttimesince1991.

ThisphototakenonMarch13,2023showstheexteriorviewofaFirstRepublicBankbranchinMillbrae,California,theUnitedStates.(PhotobyLiJianguo/Xinhua)

Mostoftheexcessdollarsareexportedtoothercountriesthroughimportsandoverseasinvestment,allowingtheUnitedStatestoharvestthewealthofothercountriesatnearlyzerocost.

Theoversupplyofthedollaralsocreates"irrationalprosperity"thatdeviatesfromtheactualeconomicsituationandexacerbatestheturmoilintheglobalfinancialmarket.

Moreeconomistsarewakeninguptothedetrimentsofthecurrentdollar-basedmonetarysystem.

Thecurrentdollar-centeredmonetarysystemdoesnotreflectthedynamicglobalmarket,saidDavidE.Sumual,chiefeconomistofBankCentralAsia,thelargestprivately-ownedbankinIndonesia,notingthatsuddenpolicychangesoftheFedalwayscausevolatilityinothercountries.

ButtheFedwillcontinuetomanipulateglobalmarketsandwreakhavocontheworldeconomy,solongasothercountriesdon"tcuttheirrelianceonthedollar.

AnalystshavewarnedthattheFedhaddrivenupassetbubblesworldwidetoanextremelydangerouslevel,andthefirstsignsofthosebubblesburstingarebeginningtoappear.

Afteryearsoffrothymarkets,realtroubleisonthehorizon.

EXACERBATINGGLOBALDEBTRISKS

WhiletheWesternbankingindustryisteeteringonedgeofcatastrophe,theFedshowsnosignsofstoppingitsratehikes.

SinceMarchlastyear,theFedhasraisedinterestratesninetimesinarow,withacumulativeratehikeof475basispoints.TheU.S.interestratenowstandsatthehighestlevelsinceSeptember2007.

ThisphototakenonApril20,2022showstheU.S.FederalReserveinWashington,D.C.,theUnitedStates.(Xinhua/LiuJie)

Aggressiveinterestratehikeshaveledtoagloballiquiditytightening,resultingincapitaloutflowsandcurrencydepreciationinemergingmarkets.

AccordingtodatafromtheInternationalMonetaryFund(IMF),thepressureondebtrepaymentforcountriesdenominatedinthedollarhasincreasedsharply.Morethan60percentoflow-incomecountriesarealreadyathighriskoforindebtdistress.

Ifthepastisanyindication,onceacountryfallsintodebtdistress,itsassetswouldbeexposedtoU.S.plundering.

In1998,whenaskedcantheUnitedStatesweatherAsia"sfinancialstorm,JeffreyE.Garten,thenthedeanoftheYaleSchoolofManagement,saidthat"bigAmericanfirmsoughttostaythecourseinAsia,takingadvantageofunprecedentedopportunitiestobuyassetscheaplyinindustriesthathavebeenclosedtosignificantforeigninvestment."

Garten"swordsbecameaprophecylaterfulfilled,andsimilarscenariosofU.S.capitalpouncingonindustriesinvulnerableeconomieshaveplayedoutrepeatedly.

AstheFedflip-flopsonitsmonetarypolicy,theUnitedStatesalsosufferstemporaryeconomicpain.Still,withitshegemoniccurrency,UncleSamcanshuffletheriskstoothersandemergelargelyunscathedfromacrisisitstarted.

Aftertheglobalfinancialcrisisof2008,ittooktheEuropeanUnion13yearstoreturnGDPpercapitatoitspre-crisislevel,whileitonlytooktheUnitedStatestwoyearstodoso.

Despiteabriefjolt,theUnitedStatescontinuestoplundertheworld.

However,theabuseofthedollar,theweaponizationofglobalfinancialinfrastructureandthecountry"sirresponsiblemonetarypolicyarebackfiringanderodingtheU.S.credibility.

AccordingtodatafromtheIMF,thedollar"ssharewithintheglobalreservesfellbymorethan10percentagepointscomparedwith20yearsago.Thedecliningtrendshowsnosignofending.(Videoreporters:SunLei,GuruhRiyanto,WayanAgus,YuFuqing,YangYiran,HuangZemin;videoeditors:WuYou,LuoHui,YuJiaming)■