Reference no: EM132163828 , Length: word count:200

Assignment - Reply to the given discussion.

Discussion - Haoran YI: Thrills and spills America is at the centre of a global monetary disorder

In July 1944, in order to take over the right of monetary from the British empire, the United States established three world systems. One was the political system--the United Nations. One was the trading system, the general agreement on tariffs and trade, it became into the WTO later; One is the monetary and financial system, the Bretton Woods system. According to this system, dollar started to become the central of the international monetary system. After the collapse of Bretton Woods system, people used to use dollar as trade currency. Then in October 1973, Opec announced that it would have to settle global oil transactions in dollars. This is the most important history time for America.

The real globalization in modem history began with the great British empire. At that time the globalization of the British empire was trade globalization. Then the United States continued a period of globalization in trade, and the real American style globalization was the globalization of the dollar. Some believe that the United States is strong because of the three power -- currency, technology and military. From my point of view, what really supports the United States is the currency and the military, and what supports the currency is the military power of the United States. It is this combination of soft power with hard power keeps the United States as the most powerful country around the world.

This article will argue that the international monetary system is unstable and, if unreformed, poses a threat to American interests. It talked about the problems of the global monetary system, and problems of the principles. My question is how does the current global monetary effect your country? Do you think there will be another currency become into another international trade currency?

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