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The history of literature is like this
preface
In an era of rapid development, an unprecedented economic transformation is underway, and many countries are gradually realizing the fragility of the US dollar as they see the debt burden on the US.
The once hegemonic nature of the US dollar seems to have been resisted by all parties in the international market, and the debt crisis is rapidly approaching every country. As a result, a trend of de dollarization has emerged among countries.
Due to their close relationship with the United States, the World Bank and IMF are deeply trapped and unable to find a reasonable solution, so they have to weigh and consider compromises as soon as possible.
But how to get on the American ship, so compromise is not an easy task, after all, as an international institution, there are still a series of strict requirements for borrowing countries.
For example, the IMF's demand for partial debt relief poses a great challenge for some countries, especially ours. If not handled properly, it may be affected by US debt.
Based on our relationship with the United States, they believe that they are unwilling to let us go, and they hold the mentality that if we cannot have a better life, you can never have a better life. The United States has pushed the debt issue to various countries, further exacerbating international tensions.
Recently, the IMF has fallen into a dilemma, forcing the management personality of Orkieva to seek support from our country. So, why did she come to us for help?
No one would listen to Yellen's warning
As Yellen, who is in charge of the US fiscal power, he can be said to have been heartbroken about the US debt issue. In theory, since this thing was established by the local government, it means that they can increase it no matter how much they want.
However, just as the national economy was on the brink of life and death, the Republican Party seized the essence of the matter. In their eyes, the debt ceiling issue was the best means to balance the Democratic Party.
So when the Democratic Party strongly advocated raising the debt ceiling to ease the current economic crisis in the country, the Republican Party came forward and expressed opposition.
Yellen, with his white hair all over his head, had to give a warning that if he did not agree to raising the debt limit again, the US would face a serious economic disaster, and no one would be spared.
However, the real economic problem in the United States is not something that can be solved by raising the debt ceiling. Even if the Republican Party no longer opposes and follows Yellen's advice, the economic crisis in the United States is still imminent.
In fact, the economic issues related to the debt crisis are not simply economic issues, but rather changes in the status and power of the United States in the international arena, with its influence and discourse gradually decreasing.
Otherwise, as the largest economic system, as long as there is no crisis in the aspects mentioned above, the United States will basically not have a real debt crisis.
Under the condition of unchanged status and power, all economic problems can actually be solved through the use of excess US dollars, because the US dollar still holds a high position internationally. Even in our country, one-third of the total foreign exchange holdings are in US dollars.
But now the position of the United States in the international community has changed, and due to the pandemic and the Ukrainian crisis, the amount of funds lost and invested has decreased, leading to a decrease in the trust of countries in the international community in the US dollar, which is why the economic problem is so serious.
In the context of large-scale selling of US bonds by various countries, the United States is facing the inability to issue the US dollar, shifting the reality of economic crisis. The proportion of the US dollar in the international market has decreased, and its credibility has also decreased. Yellen's concerns are also reasonable.
Otherwise, the debt crisis cannot become a real crisis at all, but rather another good opportunity for them to plunder other countries. In history, the United States has not faced the issue of dollarization in the past.
For decades, many countries have proposed de dollarization and gained support from many countries. At that time, the United States also faced a decline in its international status.
However, when the Americans encounter such a crisis, their first action is to launch a comprehensive war against this country, defeating all countries that oppose the hegemonic position of the US dollar to the point where they dare not oppose it. Iraq is a very typical representative.
Unlike before, there are many countries that have gone through de dollarization this time. As the saying goes, the law does not hold the public accountable. The reason is that our country and Russia are vigorously promoting the benefits of de dollarization, and we have also taken practical actions to achieve this.
Perhaps some people are curious why the US cannot deal with Russia like it did with Iraq. In fact, to some extent, the US is currently struggling.
Not only can we and Russia do nothing, but they are also helpless towards some smaller countries. Everyone can see that the strength of the United States is starting to decline now.
They cannot commit atrocities against those who oppose them with just one word of disagreement, as they did in the past. Although the US has never stopped provoking our country's neighbors, they can only take small actions and dare not take real big ones.
In other words, what they are pursuing is hegemonism, and if they truly have absolute strength, they will never allow the process of de dollarization to continue.
Of course, both the United States and the United States have experienced debt crises, and other countries are naturally not much better. Many countries have built up external debt platforms, and the severity of debt problems is constantly expanding.
This matter will naturally attract the attention of international organizations, and the IMF is a key component of the global financial system. Their purpose is to maintain the stability of the international economy and help countries in distress overcome difficulties.
The President of the IMF has proposed some relevant measures to address this issue, hoping to receive assistance from our country.
Recommendations proposed by the IMF
However, recently they have also fallen into a dilemma. In Georgieva's latest interview, she stated that the IMF should support reforms that may give China more voting rights.
In addition, she also warned that if the IMF still does not have sufficient financial resources to help troubled countries, it may lead to irreversible disasters.
From her narrative, we can actually see that the IMF is currently facing difficulties such as insufficient financial support and concerns about the current economic landscape.
In her opinion, the current situation has reached a dangerous point. Georgieva's way of seeking help from our country is to reach an agreement between the two parties to make a deal to increase our country's voting rights in exchange for our country's aid funds.
In theory, increasing our country's voting power on the IMF is a rare good thing for the IMF, which urgently needs to break through its difficulties and seek development.
After all, although our country is currently not as large as the economic system of the United States, it can still be considered the second largest and much stronger than other countries. However, our country only holds 6% of the voting rights in the IMF.
Compared to 17% of the voting power in the United States, we have lost 11 percentage points in voting power, which is even lower than Japan. Regardless of the perspective, this is unreasonable.
According to the IMF's regulations on share adjustment, the share review meeting should be held at least once every five years, but it was still thirteen years since the last share adjustment.
Since 10 years later, the economic development rate of our country has been like sitting on a rocket, but new adjustments have not been made. The fundamental reason for this is that the IMF has a regulation specifically tailored for the United States.
This regulation states that when adjusting the quota, there must be support from more than 85% of IMF member countries, and the US itself has 17%, which means that as long as the US does not agree, this decision cannot be passed.
This deformed design makes many countries feel that the IMF is a white glove dedicated to serving the United States, and coupled with the unfriendly relationship between our country and the United States, it is basically impossible for the IMF to increase our country's voting rights.
And the choice of the United States has also received widespread attention from the international community, and everyone wants to see if the United States will still choose to be our enemy in the face of their own insecurity.
The Game between Crisis and Choice
In response to Georgieva's suggestion, the local government hinted that it would not allow any proposal to increase China's voting rights to be implemented. As a result, Georgieva would fall into a dead cycle, either persistently supporting and disbanding the organization, or seeking help, but if the US did not agree, it would be impossible to proceed.
The most amusing thing is that the Americans demand an increase in member states' quotas without redistributing voting rights, which may not be well understood by European friends.
Simply put, the Americans want our country to increase funding but not increase voting rights. It is obvious that they want to treat our country as a scapegoat to reduce their own pressure.
This method can indeed alleviate the situation for the IMF, but the key to its implementation lies in whether our country is willing to be the culprit.
Not to mention anything else, let's just say that our country is currently promoting the participation of two international economic and financial institutions, the Asian Development Bank and the Asian Investment Bank, which are in high demand.
Moreover, the foothold of these two institutions is in Asia. As our country points out, their international influence is constantly expanding. It is much better for us to allocate these funds to support these two institutions than to support the IMF.
Georgieva's IMF is controlled by the United States, and with the support of the UK, they want to increase our voting rights. The US strongly opposes this and does not allow our voting rights to be mentioned.
Some media claim that both sides appear to be acting for our country, cutting our leeks from a moral high ground, but they seem to have forgotten something.
We are developing very well and quickly now. If their crisis is not resolved, they will face the risk of dissolution. We can fully afford it. The IMF cannot afford it, nor can the US afford it. Who can laugh until the end is obvious.
epilogue
It can be said that the crisis of the IMF is intertwined with the choices of our country. They want and need to change the current state, but change requires our support. However, we are not fools and will not easily allocate funds to assist the other party without any interests.
Behind this is the political and economic struggle in the international community. Perhaps in the near future, we will see the outcome of this matter, and now what we need to do is wait and see.
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