THE RULES-BASED INTERNATIONAL ORDER

 

The rules-based international order refers to the system of international laws, norms, and institutions that have been established to govern relations between countries and promote cooperation on a range of global issues. This system has been built over several decades, with institutions such as the United Nations, World Trade Organization, and International Criminal Court playing a central role in shaping international norms and resolving disputes between nations. The rules-based order has been credited with helping to promote peace, stability, and prosperity around the world. However, in recent years, this system has come under strain, with some countries challenging established norms and institutions, and others calling for reforms to better reflect contemporary global realities.

Amps caught up with NiMingda, an astute geopolitical analyst, who explained in detail the origin of the rules-based international order and US Dollar as world reserve currency. The insight shared by NiMingda on this topic is very profound and informative. Let’s dig right in and feed our brains.

Where did it all begin?

“Western elites often talk about a "rules-based international order" and how China has defied it. But what exactly is this "order"? And why do Western elites feel so threatened by China that they're willing to risk a world war to maintain this "order"?

To understand what this "rules-based international order" is, you need to understand how it came about and who created it. For that, you will need to go back in time to the age of European colonialism.

Since the 1500s, many wars have been waged by the Western financial/merchant class in collusion with the ruling class. The former would act as financiers & advisers while the latter wielded state powers (e.g., the military). We'll refer to them collectively as Western elites.

Before 1945, various Western powers would compete (and at times collaborate) to advance their colonial interests across the Americas, Asia, Africa, & Oceania. But after 1945, they would all come under the influence and domination of one great imperialist power, the USA.

While the destruction of WW2 raged across Europe & Asia, the USA were profiting handsomely from the sales of weapons & oil to various combatants all while remaining unscathed by war right until after Pearl Harbour in December 1941.

By the time the USA engaged in combat against the Axis powers, Nazi Germany was already greatly depleted as they fought the advancing Soviets. Similarly, Imperial Japan suffered heavy losses being bogged down in China fighting a war of attrition against the Chinese.

Protected by two oceans and entering the war late meant that the U.S. mainland was spared any destruction, and its armed forces suffered less casualties than Europe and Asia. By 1944, it was clear that the USA would be the strongest country emerging from the war.

In 1944 with the inevitable defeat of the Axis powers, the Allies (later known as the UN) met to establish a new monetary system. As the nation most unscathed by war and holder of 65% of the world's gold, America proposed the USD as the global reserve currency backed by gold.

This new USD-centered monetary system became known as the Bretton Woods system. And since America controlled the USD, it also gained control over the rules of world economy, and with it, unhindered access to the world's markets & raw materials.

The USSR (one of the Allies) also attended the Bretton Woods conference but refused to ratify the final agreements, calling the institutions that the American elites created as "branches of Wall Street". They were right.

With American elites taking control over global finance through the USD and writing the rules of world economy via institutions like the IMF & World Bank, a new "rules-based international order" came into being. Pax Britannica has successfully transitioned to Pax Americana.

Some historians say 1947 was the year the Cold War began. But I believe the Cold War began when the Soviets rejected America's monetary system back in 1944, deeming it to be "branches of Wall Street". From then, American elites were bent on destroying communists everywhere.

Japan became the testing ground for the USA to demonstrate to the world (and especially to the Soviets) what could happen to those who reject America's world order. In August 1945, the USA nuked Nagasaki & Hiroshima even though Japan was already on the verge of surrender.

In 1949, the communists won the Chinese civil war & established the People's Republic of China. The PRC naturally allied itself with the USSR. This meant most of Eurasia was now outside of America's monetary system, and their wealth out of the reach of America's elites.

Since China & the USSR were socialist countries, their financial system, economy and natural resources were firmly in the control of the state. That meant there were no free or open markets for the Western elites to exploit; and they were determined to change that.

The Korean War in 1950 gave the USA the perfect opportunity to destroy a newly formed but still war-torn People's Republic of China. Impoverished from a century of fighting against Western & Japanese imperialism, China barely had enough weapons to equip its soldiers.

So, the first war that the USA fought post-WW2 was against the socialist states namely, China, North Korea & the USSR. It was a big war, consisting of about 1.8M Americans & UN soldiers vs about 3M Chinese, North Koreans & Soviets. The USA & China were the main combatants.

The Korean War resulted in a draw, despite the U.S. having technological superiority over the poorly equipped Chinese army. The American elites have failed to expand their "rules-based international order" over China and North Korea. But they haven't given up.

Not long after the Korean War ended in 1953, the USA decided to wage war against another communist government., North Vietnam. This war lasted from 1955 - 1975. And once again, the American elites failed to subjugate an Asian country to its financial & economic order.

The American elites continued to wage wars to bring defiant countries (mostly socialist) to heel. However, wars are expensive, and the USA was running out of money. (At that time, the USD was still backed by gold). America wanted to find more money without raising taxes.

After WW2, the nations that joined the Bretton Woods system started accumulating USD through exporting goods to America, believing that they're as good as gold. But in 1971, Nixon suddenly & unilaterally abolished the dollar's gold convertibility, making it a fiat currency.

                                                                                           

Nations which planned to convert their USD into gold were furious, stuck holding pieces of green notes backed by nothing but "confidence in America". Since the USA was the most militarily powerful, there was nothing these nations could do but accept that unilateral decision.

With the USD no longer backed by gold, American elites decided that the USD should be backed by oil instead. To be precise, someone else's oil. America then began providing "security" to oil-rich countries. In exchange, they were required to sell their oil exclusively in USD.

Since every country needed oil, they had to have USD in hand to pay oil producing countries. In short, the American elites operated a protection racket to maintain global demand for the USD. This is why the USD is also known as the petrodollar.

Since the American elites operate a protection racket, it should surprise no one that war is extremely profitable to them. Hence America has waged endless wars to maintain the USD as global reserve currency and to ensure that nations keep their economy open for exploitation.

With the fiat USD as global reserve currency, America can print almost unlimited amount of dollars with no fear of hyperinflation. These dollars are then used to buy real goods & services from other nations. This is how the American elites defraud the world till this day.

The Federal Reserve (a privately owned central bank) & the U.S. gov also work hand in glove to give free money to American corporations in the form of grants, loans & bailouts. These corporations then use the free dollars to buy up assets & raw materials from overseas.

Here's how American elites steal from the world:

1. The Fed prints the USD

2. The U.S. gov distributes it to the elites via their corporations

3. The corporations buy up assets, goods & services from other countries

4. The military "maintains global demand" for the USD

And in order for these "USD rich" American elites to own the wealth of other countries, their corporations must have unfettered access to the markets of those countries. Hence why the U.S. gov aggressively "promotes" liberal democracy, even through regime change if necessary.

So where does the U.S. military industrial complex come into the picture? Well, they're simply one of the tools wielded by America's elites. The weapons manufacturers are no more dangerous than the Federal Reserve, Wall Street & other organisations controlled by the elites.

By the 1970s, the American elites, rich from the plunder of so many nations, decided to have another try at cracking the Chinese market. So, in 1978, Washington normalised ties with Beijing by accepting the PRC as the sole legal government of China & Taiwan as part of China”