A World in Crisis | Casino Capitalism and Crapshoot Politics

We’re sailing into dangerous waters indeed. In the article below, Haass focuses on geopolitics, which is what Foreign Affairs is all about but fails to appreciate how global monetary policy has been the main driver of conflict and divergence, both within nations and between them.

Mismanaged finance with fiat currencies has greatly exacerbated economic class divides and trade relations and disrupted resources across the globe. This is what leads to geopolitical conflict and imperialist ambitions. The global skirmishes fomented by Russian and Chinese imperialism are driven by their financial needs that have been threatened by US dollarization and the centripetal forces of finance. This all comes back to the management of the US$ as the global reserve currency.

Haass alludes to this briefly at the end of his essay, noting how the US has abused this power of the global reserve currency. But he merely warns about the consequences of the US$ losing its primacy and ability to inflate away its enormous fiscal deficits. Inflating away US$ debt is not going to make people across the globe happier or more economically secure. It only increases the potential for conflict over necessary resources.

A Foreign Policy for a World in Crisis

By Richard Haass

September/October 2022

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Author: Edward Chapman