Growing resentment at "Dollar Hegemony"

At the end of the day the dollar will go poof (dragging all other currencies along with it) only when creditors get sufficiently pissed off with the issuer and declare that they've "had enough" funding American profligacy I wudda thunk this would have started long ago, but the resentment does seem to be building. At the G20 meeting in November, Brazil's foreign minister quipped that Brazil had been only invited to attend "the coffee breaks." Sarkozy was a little more piquant when he said: "The time when we had a single currency (the dollar), one line to be followed, that era is over and it came to an end on Sept. 18 when responsibility was taken without our opinion being asked with the failure of a major banking institution (Lehman Brothers)..." So folks are starting to speak out.

Less so in Asia, however, and that's where all the money (dollars) are. Well, here is Henry Liu serving up good a pee-pee slapping for such docility. Some snips:

The exporting economies have been lured into shipping real wealth to the US in exchange for US debt denominated in fiat dollars, which cannot be spent in their own domestic economy without monetary penalty and which must be returned to the US as capital to finance US sovereign debt. The adverse effects of this predatory monetary regime, known as dollar hegemony, differ on economies at different stages of development. But one common effect can be observed clearly: the helpless working poor in all trading economies around the world, who had no voice in economic, trade and monetary policymaking, did not benefit throughout the phantom boom phase from trade globalization and are now suffering the most in these days of reckoning when the boom bust.

And here:

Further damage to the global economy cannot be averted without a fundamental change in US policy that has been exploiting its predatory monetary hegemony. This dollar hegemony grows out of a fiat dollar that has allowed the US to finance its decades-long current account deficit with a compulsory compensatory capital account surplus. This sucks wealth from the exporting emerging economies to the US to keep it as the world's richest economy, consistently consuming more than it produces with the help of debt denominated in fiat dollars that the US could print at will.

Worth reading the article in its entirety.