Elizabeth II Bank to hit dollar

Regarding the chaotic, scandalous and unpredictable G7 summit, the global information field has not paid enough attention to a much more significant event: in the Anglo-Saxon world, there is a revolt between London and Washington that is economic and monetary nature. It is much more important than any political rapprochement with the U.S., which Prime Minister Boris Johnson can hope after fierce Brexit. While Johnson is doing his utmost to get closer to Donald Trump at the political level, the reverse is happening at the financial level: the Governor of the Bank of England Mark Carney announced the need to review the global monetary system and the urgent replacement of the existing system based on the US dollar by new “digital asset” or “digital currency”.

The exactly two delicacies have completed Mark Carney’s demarche noticed by Canadian Bloomberg reporters. The head of the UK’s Central Bank made his aggressive statement at the annual symposium of Western financial leaders in Jackson Hole which is controlled by the Federal Reserve Bank of Kansas City, i.e. the US Federal Reserve. You need to have valid reasons for visiting bankers and financiers whose life, wealth and social status depend on the status of the American currency, and to speak openly that in general such a privileged status should be immediately dropped to the ground.

Another important detail is the UK chief banker’s offers that resemble the Libra Project, the digital currency which the consortium is going to launch consisting of leading (mainly the US) financial and technology companies. The project has already caused anger and criticism from Donald Trump.

The US President rightly considered that the digital currency of Libra, which the consortium is going to launch consisting of Facebook, Mastercard, Paypal, Stripe, Visa, Ebay, Lyft, Uber, Vodafone and other large companies, has a direct and serious threat to US monetary sovereignty and the dollar’s status. It stands to reason that a Mark Carney’s proposal of a similar nature and even form will cause the Trump administration an equally painful and aggressive reaction. The Governor of the Bank of England immediately misspoke that the consortium project inspired by Facebook cannot be an alternative to the dollar yet being the main currency of the planet. Moreover, the London banker has an even more interesting proposal: to create, in fact, the same digital currency, only based on a consortium that would not consist of private (mainly American) financial and technology companies, but central banks of different countries. From diplomatic English into colloquial Russian it means that the FRS wants to take off its crown and become an «equal member» of the collective organization of central banks that would issue the global «digital currency.»

To understand the logic of Washington administration reaction (by the way, such a reaction would be independent of a surname and party affiliation of a US president), you just need to take into account the the reasons of dollar demand in the world market that is not connected with the US economy and its achievements. The first reason is the dollar status as the main world currency which key products such as oil and grain haggle over, and through which most exchange transactions go. For example, during an exchange of a conditional tugrik with the euro, the operation is actually carried out concerning the scheme: “tugriks are exchanged with dollars, dollars – with euros.»

The second reason concerns those who do not want to sell their oil or other exports for dollars face with (due to suddenly discovered human rights violations) color revolution specialists or strike groups of the US aircraft carriers. Mark Carney’s proposal knocks out a stool out of the dollar, and its implementation would inevitably lead to serious problems for the US budget and the financial system as a whole, which, in turn, would limit the possibility of using aircraft carriers.

Moreover, the position of the Governor of the Bank of England seems like a guilty verdict against the American currency and the system built on it.

One more important fact: Mike Carney said about eight months ago that the dollar would have been replaced as the main global currency but the yuan would have been the new hegemonic currency.

“China’s yuan represented the most likely candidate to become a reserve currency to match the dollar, but it still had a long way to go before it was ready. The best solution would be a diversified multi-polar financial system, something that could be provided by technology, Carney said,” the Reuters reported.

Natalia Veselnitskaya — official website