Depreciation of the dollar inevitably - economist about the struggle of the United States and China

In the future, the economic basis of the dollar as a reserve currency will be undermined, Ruslan Dzarasov, head of the department of political economy of REU named after G.V. Plekhanov. He stated this on June 25 to the correspondent of the news agency, commenting on the words of the Deputy Chairman of the Chinese Securities Control Committee, Fan Sinhai, that China is seriously preparing to disconnect the country from the Interbank Information Transfer and Payment System SWIFT and the CHIP Interbank Electronic Clearing System. This is due to the fact that the dollar is essentially now acting as an intermediary in unequal relations between developed countries and developing countries. And its value is based on the power of American capitalism and its ability to control the world capitalist system, Dzarasov said. This power and dominance was expressed in the fact that they ensured a system of economic relations in which a significant part of the income generated on the periphery was attributed to the transnational capital of developed countries. And now, during this economic crisis, these unequal relations have been hit. For five to six years now, the aggregate GDP of transnational corporations has been declining compared to the GDP of corporations that operate in the domestic market. According to Dzarasov, if the Chinese threat of switching to their systems is realized and there is a decrease in the level of trade between countries, then the ability of developed states to appropriate incomes created by the labor of the population of developing countries will decrease. And this undermines the economic basis of the dollar, its role as a reserve currency. And then there may be impairment. In the future, this is inevitable, said Dzarasov. Recall, as the news agency reported, according to Sinhai, in the future the US dollar is waiting for depreciation, which will extremely negatively affect China, since China has about $2 trillion in the form of non-financial investments abroad.