1.
Origins & Consequences of Dollar-
Dominated Trading System
Originally Published as: A
Lopsided System
Dawn, December 7, 2018
See: http://bit.ly/AZUSD
Illustration 60674903 © Yaroslav Tumbartsev | Dreamstime.com

2.
The Global
Trading
System
Impacts Our
Lives

3.
But Very Few Understand How It Works

4.
Two World Wars Depleted Gold Stock
of European Governments, Making
Gold-Based Trading Impossible
World War One

5.
The Bretton-Woods
Conference 1944:
Created a Dollar-
Based System:
US$ 35 = 1 oz. Gold

6.
JM Keynes Proposal For A
Symmetric Trading System was
quashed by USA

7.
Bretton-Woods:
Dollars = Gold

8.
Nixon Shock of 1971:
Excess Printing of USD, to finance Vietnam War
Nixon revokes Bretton-Woods, delinks USD & Gold

9.
Massive
Uncertainty about
Future of Trade
Can a system of
unbacked
currencies work?
Floating Exchange
Rates Emerge.
Hunt Brothers
Almost Corner
World Silver! For Details, see: http://bit.ly/AZHunt

10.
The Petro-Dollar Comes into Existence
US deals with Saudia to ensure oil trades are dollar
denominated.
US Dollar becomes backed by Petrol, instead of
Gold
• Bloomberg Originals 2016:The Untold Story Behind
Saudi Arabia’s 41-Year U.S. Debt Secret
• New York Times June 1974: ‘MILESTONE’ PACT IS
SIGNED BY U.S. AND SAUDI ARABIA

11.
All countries, except USA, need Dollars
They earn dollars only by EXPORTS.
USA just needs a printing press.
It can trade paper for real goods.
USA can import anything, without any exports

12.
Conventional Monetary Theory:
Money=Gold
Modern Monetary Theory: Fiat Currencies
• Government can print money. It does not NEED revenue.
• See: ABC’s of MMT: http://bit.ly/ABCmmt
• Non-inflationary money creation possible if output is
increased by additional money.

13.
The Petro-
Dollar is the
key to US
Power

14.
As US Hegemony Crumbles, Search for Alternative
Global Trading Systems Intensifies

15.
Symmetric Trading System Needed.
Multi-Polar System Likely to Emerge

16.
Links to Related Materials
Writeup: A Lopsided System: http://bit.ly/AZUSD
Economic Crisis In Pakistan: Analysis and Solutions: A collection of
articles analyzing different aspects of current financial crisis. The
suggested solution is to develop a self-reliant economy, which does not
need to import essentials to survive. http://bit.ly/AZecp
These slides: http://bit.ly/SSUSD