Daily Times

Robert Kiyosaki is one of the most influential contemporary financial experts. He has won many accolades for his writings and now he has taken up global economy as his next project. In a series of lectures, Robert has come up with a profound theory which explains a lot of occurrences in the modern World and the most significant of those is his prediction regarding the downfall of the Dollar. Many other writers have also begun doubting the future of the US hegemony of the world. There is a dynamic change in the model of Global Governance and it won’t be long before the established financial powers of the past will become dependent on other not so wealthy nations. This is happening around the World but it is spearheaded by the country which has risen from abject poverty in a matter of three decades. And that country is China. As China progresses, it is shifting the power from companies that have hijacked the global economy system of the world to a new system where the financial system with backed by actual value, production, hard work and tangible assets.

The United States projected the Dollar as the currency of the world. After the European reconstruction, the American Dollar became a trading reserve currency. As the decades went by, the Euro was introduced as a currency that enjoyed the same benefits. A western hegemony of the global financial market was born. Initially, the currency issuance was backed by Gold reserves of the State bank of Governments, but that condition was done away with in the 1960s by the US Government. As a result of this, the US Dollar became a paper currency that was being printed by the American Central Bank. The whole American economy and the global markets was the promotion of Paper currency that was backed by nothing. The American Central Bank can simply print money and pay it to buy goods and services across the World. This system and the hold over Oil supplies has allowed the Dollar to retain its position but that is changing with the advent of the Chinese Yuan and the BRICS initiative.

The American Dollar and the Euro have enjoyed a higher status among other currencies thanks to their foreign and political policies. The whole American system relies on Credit and Debt. That is the reason that America is one of the most indebted nations of the World. The narrative of the Dollar continued with the control of American Government over Oil fields in the Middle East. It is an open secret that tagging the Dollar with the controlling of Oil prices lead to further superiority of the Dollar. The Iraq War and the disruption of the Middle East was orchestrated to remain in power over oil fields of the OPEC countries. But now that is also rapidly changing.

Under the leadership of the Chinese Government, Iraq and Iran are now part of the One Belt One Road Initiative. Railroads and trade networks are being developed between these two nations, which have gone to war in the past. With their co-operation and participation in the OBOR movement, the hegemony of the Dollar over oil prices will be broken. Next in the Middle East, is the opening of diplomatic relations between Saudi Arabia and Iran under the leadership of Xi Jinping. The President of Iran is soon to visit Saudi Arabia which is a momentous event in the history of these two oil rich nations. Overall, the entire Middle East including Qatar, Syria and Lebanon are onboard in pursuing Chinese OBOR project to end the supremacy of the Western World.

On the other hand, the BRICS initiative which includes Brazil, Russia, India, China and South Africa are already working and trading in non-Dollar transactions. The Chinese Government is trading in Yuan and is allowing the BRICS countries to trade in their individual currencies. This is allowing lesser transaction costs, more benefits for trading partners and more potential to grow together. While the US Government has resorted to economic sanctions on Iran, Venezuela and China. These countries are now working in unity to end the hegemony of the Dollar. There is a new global economic system in place that believes in real value of the economy based on standards of actual commodities such as Gold, Silver, Oil, production, stocks and supplies. It is no longer fueled by fake numbers showing on a software and no actual worth at the back end.

China and Russia have already entered into mutual trade, technical as well as diplomatic relations. China has carefully supported Russia and offered a narrative against the Western monopoly of the Global Financial System and the American agenda to dominate the national policies across the world. Instead, China is offering a narrative of connectivity, trade, cultural exchange and mutual benefit. It has brought many a nation to the trade talk table and continues its commitment to connect to the world.

Now, the BRICS movement is becoming BRICS plus where countries like Afghanistan, Turkmenistan, Kazakhstan, Algeria, Egypt, Argentina and many others are willing to join the OBOR project. This is will account for the majority of the human population of the world beyond the scope of the Dollar and the Euro. A safe economic partnership which is beyond the reach of American, NATO or sanctions from the Western world, which are mostly decided unilaterally.

A new global economy is on the horizon. It is backed by actual commodities and it is the end of the American Dollar. The only way for the US to revive its economy is to concentrate on building relationships, finding common ground and promoting trade and commerce. Instead, America is bent on dominating the economic terms of its influence through paper currency which is not backed by actual value. On the other hand, Chinese OBOR is a success from the start. In the revival of the ancient silk route, the Yuan will become the strongest currency. The energy hungry nation of China will be fed by a prosperous Middle East and goods and services will flow back and forth in the new economic hub of the world. With the joining of new nations, there will be new opportunities and when the trading relationships are established, they will soon become political and military alliances. As the military and political alliance between Pakistan and China is a strong example of the potential of trading partners.

In the case of Pakistan, the partnership between Islamabad and Beijing is strategic and historical in nature. Many CPEC projects have been completed and many are in the process but there have been considerable bottle necks. In the words of Xi Jinping himself was stated that CPEC is a critical part of One Belt and One Road Project but unfortunately, the potential of CPEC and OBOR have not been fully utilized by Pakistan owing to its unrest and political instability. The potential of CPEC and Gwadar can steer Pakistan out of its financial complications but there is a need to focus on regional connectivity, sound policy-making and peaceful environment for investors. Pakistan can become a trading hub and a transit destination for Middle East, Central Asian states and China but the same is being delayed over petty political obstructions. In time, it is clear that the new change will go in favor of Pakistan and the region as a whole. Pakistan is a nation that has favored the Americans through many decades, only to be victimized by IMF, now is the time for not only Pakistan but many other nations to look towards the rising power China for a new tomorrow.

(The writer is Chairman of Jinnah Rafi Foundation)