Another factor that contributed to weakening the American economic system was the rise of the high-speed Internet, because now it is possible for professional service jobs, such as engineering, software engineering, computers, any type of engineering, any type of work that does not have to be done on site, this work can be done anywhere in the world and sent in on the high-speed Internet.
This has given countries like India and China the ability to put their people into jobs that used to be filled by American university graduates. Again, it is a cost-saving for the corporations, Wall Street likes it, it increases profits.
And so, this is where China's rise came from. It was an unintended consequence of globalism. Again, some of us warned, I warned, I've been warning for ten or fifteen years, but they don't listen. They say -- oh, it is just free trade, we will benefit. Clearly, they were wrong, it is not free trade and we haven't benefited.
VOR: But in that sense, does that imply that, perhaps, when we are talking about the interests of large corporations VS national interests, national interests are increasingly losing to the corporate?
PCR: In the real sense, there is no longer an American national interest. There is the interest of these powerful interest groups. And we've had these recent studies from scholars who have found that the American public has no input whatsoever into government decisions or into policy decisions. The conclusion of the recent study, which looked at thousands of government decisions, was that the American people have zero input into the formation of policy.
So, in terms of anything being done for the benefit of the people or the national interests in that sense, nothing is done. What is done is for the benefit of about 6 powerful interest groups. And I've told you about the four, which I think are the most powerful in terms of the foreign policy -- the question that you raised.
So, in that sense, the US is sort of making itself vulnerable in many ways. For example, look at the economic policy. For years now, in order to support a handful of large banks the Federal Reserve is creating trillions of dollars, new dollars.
This creation of dollars devalues the existing dollars that are held by people around the world. They look and say -- what are my dollar assets going to be worth, when the Federal Reserve is creating so many new dollars every year?
So, this has caused some thought about leaving the dollar as the world reserve system. When the threat to the real value of dollar denominated financial instruments comes on top of the suffering from Washington's financial bullying of sovereign countries, the momentum grows for finding some other mechanism than the dollar as a way of settling international transactions.
And of course, the Chinese have said that it is time to de-americanize the world. And the Russians said recently that we need to de-dollarize the payment system. And so, we have this agreement with Russia and China on the large energy deal which is going to be outside the dollar payment system.
We see the BRICS, the five countries -- India, China, Russia, Brazil and South Africa -- and they are talking about settling their trade imbalances in their own currencies. And they are even talking about creating a bank between themselves, like an IMF or a World Bank.
So, those are the developments that come from America's misuse of the dollar as world reserve currency. Washington uses the dollar to bully, they use it to sanction, they use it give their financial institutions hegemony over others. And over time, all of this creates animosity, worries. And then, when you add, on top of that, all the new dollars that the Federal Reserve has created since 2008, it creates a real financial worry. And so, I think, in that sense, the US has weakened its position.
VOR: But how far do you think the US might be prepared to go to protect the dollar? Or, perhaps, those interest groups are no longer interested to protect that particular currency. Perhaps, they have already taken some kind of precautions.
PCR: From the standpoint of Washington's power, losing the world currency role would be devastating, because that's the main basis for Washington's power. That's why Washington has financial hegemony, that's why Washington can impose sanctions on sovereign countries. So, if Washington loses this role, if the dollar ceases to be the world reserve currency, we'll see a dramatic reduction in Washington's power.
All of the interest groups that benefit from Washington's power would find that a disadvantage. Of course, most of these corporations are now global or transnational. And they may have bank balances in many countries.
VOR: But still, how far is Washington prepared to go? Could it afford another war? When Saddam Hussein attempted to challenge the US Dollar back in 2000, he had to pay a price. And we all know what kind of price he did pay. Now, when China and Russia, and other countries are starting to mull the idea, what kind of risk are they running?
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