Submitted by Pachamama
After World War Two virtually all national economies were in ruins, except the United States, of course. These circumstances gave rise to the United States dollar as the medium of exchange between countries. In this process countries were forced to exchange their national currencies for US dollars to settle amounts owned to foreigners. And foreign countries were force to do the same to pay for goods and services. In both cases fees were charged, by predominately American banks, making the transactions more expensive than if national currencies or a basket of currencies could have been used.
This structure gave rise to United States banks as the leading financial institutions in the global economy. In addition, the post Bretton Woods architecture made the US dollar the reserve currency of the world. By 1971 the pretense of a ‘gold standard’ was removed as we entered the age of the supreme fiat currency. This monopoly by the major United States banks was later seen as a source of stupendous political power as the USA then sought to impose sanctions and USA law on world countries and other entities when it perceived that its interests were at stake. In recent times an overarching global grab for power has seen the USA imposing penalties on European banks for alleged violations of US law, for actions occurring outside of US territories. It’s a staggering development that although these competitor institutions never did anything in contravention of their national laws, that the USA could have the audacity to have determined that its laws had been broken. For the laws of Empire must have precedence over those of its colonies.
At the micro level, if a ‘shoemaker man’ from around dey by de bus stand went to Trinidad & Tobago for carnival and sent back 10 US dollars to his son, both the Trinidad and Tobago authorities and the Barbados authorities would have to inform the Treasury Department of the USA about that transaction.