Well, companies themselves have been causing this crisis as much as speculators, because companies like Amazon, like Google, or Apple especially, hav… - Michael Hudson

China, like Russia, has been reducing its dollar holdings as much as possible, just keeping enough to prevent the currency from being destabilized by the dollar inflows. China, Russia are buying gold instead of U.S. dollars as much as possible. China is trying to escape from buying Treasury securities. Why would any government want to buy Treasury securities yielding 0.1% when the dollars coming into China are trying to make loans or buying countries, making 15% profit or interest a year? Nobody would want that situation to continue. China doesn’t want it to continue. As long as it [China] is part of an international economy that is dollarized, it [China] is forced to take a loss, a sacrifice, year after year, subsidizing the U.S. economy. The only way that it can avoid that is to isolate itself from the U.S. dollar. No country until this time since 1945 has ever had the critical mass to be able to do it. That is the objective, the stated objective of Russia, China and their allies. Of course, they don’t want to buy treasury bills. That doesn’t mean that, yes, they found a wonderful investment making 0.1% a year and subsidizing the United States. That is not what China or any other country wants.

And now this foreign exchange is going to be not recycled to the U.S. to support the dollar. It’s going to be spent on gold and on mutual currency swaps. Well, what that means is that the dollar no longer has the free ride, no longer has the free support. And other countries will protect themselves against the depreciating dollar by doing what the United States did against Germany in 1921 after World War I, a century ago, by imposing special tariffs against depreciating currencies. So they get it, the game is over. And it’s not over because Russia and China and India and Iran defeated America. It was the self-defeating policies of this blindly arrogant, greedy, Republican, Democratic, deep state philosophy.

The decline of the West is not necessary or historically inevitable. It is the result of choosing policies dictated by its rentier interests. ...The threat posed to society by rentier interests is the great challenge of every nation today: whether its government can restrict the dynamics of finance capitalism and prevent an oligarchy from dominating the state and enriching itself by imposing austerity on labor and industry. So far, the West has not risen to this challenge.