IMF experts: Nations on their way to multipolar world

20 апреля 2022

Yes, this situation is not typical of  a once prosperous Europe. Exploding prices, food and energy shortages... The deplorable consequences of the sanctions policy were also faced by the residents of the United States.  Countries are now on their way to a multipolar world. This was stated by the IMF experts. The transition can take place in several scenarios... The first one is by separate blocks of countries. The second is a managed transition, which protects the achievements of globalization. Of course, the West likes the first scenario less.  But will it be possible to take the helm of global financial renewal in the face of  the undermined confidence in the dollar? - This is a  big question.  All the details from  Elizaveta Kazakova.

Dramatic food price increases, restrictions on the sale of bread and butter, empty shelves - the picture is too unfamiliar to residents of prosperous Europe and the United States  And what about the poor countries?

"We can't even make ends meet anymore. My family has no choice but to eat soup kitchen. This is the last opportunity to feed children," says a resident of Argentina.

David Malpass, President of the World Bank:

For the poorest countries and for people in poor countries, this is a flagrant disaster. They spend all their income on food.  Rising prices hit them directly.

Kristalina Georgieva, Managing Director of the International Monetary Fund:

We have downgraded our forecast for 143 countries, representing 86 percent of global GDP. In addition, inflation is accelerating. It is now caused by continuous disruptions in the supply chain. This is due to the price of energy and food, as well as some metals and fertilizers.   

Ngozi Okonjo-Iweala, Director General of the World Trade Organization:

The issue of fertilisers is of a key nature. What is happening around Ukraine, Russia and Belarus is a serious challenge.  “We will decide what to do next. We need Brazil to produce. If both this state and Ukraine fail to do this, there will be an increase in food prices in 2023 as well.  

In order to start solving the problem, you need to clearly see its cause. 

The U.S. administration, for example, smartly recalls the coronavirus, the reset pandemic it itself created. But was one such crisis shake-up of the financial system not enough? 

In the last century, the dollar managed to seize the championship from the British pound sterling.

Two world wars depleted the economies of the European states involved in them. 

America actively lent to the participating countries, and with the loans issued, it sold its own weapons and other necessary goods for dollars and gold. 

Today, the United States needed another war on a foreign European field. 

At the same time, the sanction artillery was used. 

Joe Biden, President of the United States:

How are we going to reduce the pressure of inflation? Maine, New Hampshire, America have gone on the mend They're on the move. And we approach our challenges from a position of strength.

Diversification of reserve currencies: the dollar loses ground

There are almost no countries left in the world that would not be affected by US sanctions. The most powerful  sanction are imposed against China, Iran, Russia. And in today's sanctions confrontation with Moscow, Washington openly uses its currency as a weapon - the dollar is militarized.  The once dominant U.S. currency is becoming less secure.

Today, countries are confidently switching to their national currencies in mutual settlements. 

Alexander Lukashenko, President of the Republic of Belarus:

Any system will then be more stable if it does not rest on a single standing point or on a single support. The more supports we have, the more stable is the system. What would be wrong if our entire world system and our planet were held on to these four standing points: The United States of America, the European Union as the second standing point, Russia, China, possibly India. What if our whole world system and our planet were held together by these four points of support? Would it be any less stable if it rested on that destructive, self-destructive one pillar in the form of the United States of America? I think that says it all.

The closed-minded West is used to seeing the world one-sidedly and is therefore incomplete.

The same EU structures prepared packages of anti-Russian restrictions much earlier than the Ukrainian special operation. Knowing their inert bureaucratic machine on rusty gears, they are too quick to accept stamped packages of sanctions. 

A new package of sanctions has also sprung up within the walls of the White House. But it's too late. 

The dollar, against the backdrop of a steadily growing US budget deficit, reduced its share in reserves by 10 percent.   Other strong open economies are being replaced by Australia, Switzerland, and finally China. 

Andrey Starikov, political scientist, head of Baltnews agency:

Because the dollar is backed only by trust. The trust in it, but by disconnecting a number of Russian banks from Swift, disabling free settlement opportunities for Russia for Belarus by stealing Russian gold and foreign exchange reserves of 300 billion in the United States, the countries of the West themselves made a death sentence to the dollar . They sent it into such a period of extinction. 

The United States organizes smoldering conflicts that can be profitably blown up at any time.  There have been a lot of explosions like this during the unipolar era: from Kosovo and Syria to Ukraine and the Donbass. But now the U.S. dollar is being blown asunder on a minefield of finance.