U.s. Dollar s World Reserve Status - 2027 Words

Throughout the 20th century, the United States has slowly constructed a global system of control. Its superior military, weaponry and intelligence apparatus have been crucial in this system, but an equally important factor has been its control of the global economy, and its primary weapon, the U.S. Dollar. The dollar’s world reserve status alone does not make it unique, but its deeply rooted role in American and global geo-politics certainly does. As Vassili Fouskas and Bà ¼lent Gà ¶kay point out in their book The New American Imperialism, â€Å"Dollar hegemony has always been strategic to the future of American global dominance, in many respects more important than America’s overwhelming military power. While military power is more visible and useful as a display, it is the dollar’s role as reserve currency that secures the domination of the U.S. in the global economic market place†. [1] This system is built on serious fault lines and its future is the most important issue for international relations today. To understand how the dollar secures American hegemony requires some review of history. After the Great Depression and World War II, the economic structures of the Old World powers were destroyed and in dire need of reconstruction. Only America remained in one piece, a situation that allowed it to decide how the new world order would work. As World War II was ending, representatives from the Allied nations were gathered in Bretton-Woods, New Hampshire, where negotiations for thisShow MoreRelatedAnalysis Of The Book Century Of Enslavement Essay1366 Words   |  6 PagesU. S. MONETARY POLICY Where do we come from? How did we get here? These are questions each one of us eventually asks ourselves and, in so doing, searches for the answers. It is intrinsically woven into us to know the basis of what sustains us. 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