
("
My Lucky Dollar [metaphor of a global crisis]" Photo by:
Mulia/Flickr)
On December 18, 2009 ended the Copenhagen conference which marks a turning point regarding the international economic relations and leave a big question about a possible future developments in world geopolitics.
The countries assembled in
ALBA (an acronym which stands for "
Alternativa Bolivariana para los Pueblos de Nuestra America", which includes Venezuela, Cuba, Bolivia, Nicaragua, Dominica and Honduras) decided to officially abandon the Dollar for internal trade between them.
The new currency, the
SUCRE ("
Unified System for Regional Compensation") will enter into force from January 2010: this virtual currency will be used in trade between member countries in this organization, but in future could turn into real money, as already happened in past with the Euro.
The initiative of the six countries officially members of ALBA with the addition of Ecuador, has been opened to all Latin American and Caribbean countries which will request.
The signs of an imminent end of the Dollar has shown by the economic situation in the U.S., which is becoming aggravated with the continuous growth of public debt, the collapse of the inputs and the increase of unemployment: the U.S. public debt in 2008 has come to touch the 10.699,80 $, which represents basically 75% of GDP, and the situation is getting worse, despite the unemployment rate has temporarily stopped at 10%; the FED under the label of
quantitative easing, undertook a campaign purchase huge Treasury securities (around 300 billion Dollars that will be surely raised).
China, most foreign holder of U.S.
assets (debt securities), around 768 billion Dollars, stopped to increase its international reserves in Dollars and through the words of the governor of the Bank of China, Zhou Xiaochuan, expressed the need of a new world reference currency.
Meanwhile,on December 17, 2009 a meeting in Cairo between the leaders of the Persian Gulf (Kuwait, Saudi Arabia, Qatar, United Arab Emirates, Oman and Bahrain) signed an agreement providing for the adoption of a regional single currency: the Minister of Finance of Kuwait, Mustafa al-Shimali, said that the pact will create a Central Bank with the task of creating a single currency.
Hugo Chávez, President of Venezuela, the country with the largest oil reserve in the world, on other occasions had already proposed the creation of the "
Petro" a currency linked to oil reserves in some rich countries in the world, just as was done in the past, when the reference currencies (Pound and Dollar) were anchored to the gold reserves: he expressed the decision to exit from the Dollar area after the last official meeting between representatives of the ALBA countries, held on December 13 in Cuba, where he had already expressed his doubts and worries about the imperialist policy perpetuated by Obama.
Labelling him "
the Nobel Prize for War", he said: "
This is an opportunity to carry on drawing the new multipolar world: the new architecture of the post-empire U.S., as the empire of the Dollar has reached its end: we are at the ultimate downfall of the Yankee empire "; he also lash out against developed countries bacause of their goal to divide the world population in populations of Series A and Series B.
The present crisis has shown the shortcomings of the current economic system, which has brought an intestine crisis in the U.S. spread like wildfire around the world.
So how long will last the Dollar and the economies linked to it?
A financial and economic restructuring will undoubtedly be the basis of the forthcoming meeting between U.S and EU.
The risky dependence on the Dollar triggered a question that should be carefully studied by economists in the hope to predict carefully the next world crisis: from the last Wall Street's collapse is now clear that the U.S. and EU cannot perpetuate the crazy economic policies of the last thirty years, but instead there is the necessity to prepare a New Breton Woods.