“Systematizing Alternative Financial Cooperation is the Key to the Solution”

“It’s best to think about the dollarization in terms of two distinct but related processes. The first is the mounting contradictions of the dollar system itself. The second is the increasing availability of alternatives. The proliferation of these alternatives is not systematic it has a certain ad hoc character and it will retain this character until a sizable number of countries are able to come up with a plan for alternative unified international monetary arrangements. This is necessary because the ad hoc arrangements being made today are not systematic or complete solutions. So a systematic solution is necessary and this will only come into being when a sufficiently large number of countries representing a sufficiently large part of the world economy can mutually agree to create one. Another important option to U.S. financial dominance is to create a strong financial sector at home that is not relent on foreign capital. Such a financial sector must be oriented towards productive investment including investment in those sectors which have the greatest possibility for being competitive on export markets. Not only will expanding productive capacity increase the possibilities of international cooperation among countries that are increasingly dealing with one another on a more and more equal basis because the spread of multipolarity will reduce the power differentials among countries, it will also make all sorts of financial cooperation possible.”