| With the globalization of world economy, the development of cross-border activities in the financial sector is also at a surging trend. Financial globalization has not only become the most critical part in the development of world economy, but also the most sensitive one. Financial globalization impels the re-configuration of fund worldwide, on the one hand it brings a rapid development of the financial centers in Europe and the United States and other countries and the other hand, developing countries, especially emerging market economies receive a large number of much-needed start-up capitals for economic development. At the same time, we must clearly understand that the 20th century was the century of the United States, and it is an indisputable fact of the United States'global expansion. This century, it will remain to affect the world's financial system, mainly in the form of US dollar hegemony and its leading role. U.S. dollar has become a tool of America for exploitation and plundering worldwide. (Wang You-Quan,1965). The collapse of the Bretton Woods System In 1971 and the two previous dollar crises did not shake the U.S. dollar's dominance, and it was further extended after the first oil crisis.It is not ripe for the continuity of U.S. dollar hegemony in the post-Bretton Woods system, but hard earned by the long-term efforts of the USA. Standing under the same banner named NATO, facing the common enemies, by the use of the great advantages of the Bretton Woods system, the United States and Saudi Arabia signed a series of secret agreements (David 1999), in this so-called "no-shake agreement", the Saudi Arabia agreed to continue to solely price and settle in the oil U.S. dollar oil and the oil U.S. dollar has become the first factor in the international balance of payments of America. (Beijing Normal University Center for Financial Research Task Force 2007). The United States values of free capitalism have gradually been accepted by the world, continually bringing Western Europe, the Middle East, Japan, East Asia into the external part of the United States and supporting the U.S. dollar as an international reserve currency in a cooperative manner.Its function of settlement and reserve currency has established in the international arena. So, research on the U.S. dollar's status in the post-Bretton Woods system can not just stay in the dollar's international reserve currency status, it is necessary to consider other economic and even international political factors.However, the present study on the dollar hegemony is mostly based on economic theories which are primarily concentrated on the economic strength, the international monetary system and exchange rate arrangements. In fact, the emergence and development of the free market system must have three preconditions-hegemony, free will and common interests. The United States has always focus on the strategy of ideological penetration, and it is a fact both in the politics and economy (Li Haiyan 2003). U.S. dollar hegemony arose from the free market system, so it certainly should not rule out the impacts of common interests and free ideology. Financial hegemony is supported by a variety of strengths, especially the real economy and military advantages (Wu Bi-kang,2009). In my opinion, the economic strength and military strength are also relative, what counts more is the banner of common interest. Therefore, the survival basis of the dollar hegemony not merely contains America's economic strength and the special status of U.S. dollar in the international monetary system.The international monetary system already built in Post-Bretton Woods era is only a tool to maintain U.S. dollar hegemony. It maintains the circulation and recycling of U.S. dollars by absorbing other economies into the United States-based free market economy, such as Western Europe, Japan, the Middle East and East Asia, Latin America, The author believes that the globalized market economy is the dollar's external condition. The continuity of U.S. dollar hegemony is the post-Bretton Woods era based on the process of internationalization of market economy, the printing of U.S. dollars out of the constraints of exchange for its gold reserves and maintenance of the fixed exchange rate and the excessive printing of dollars by the United States regardless of U.S. dollar's credibility and its image (Tang Chuang Xin,2008). It includes not only selfish self-interest of the United States to maintain the dollar's dominance but also an objective demand that is to maintain the U.S. dollar cash flow and its cycle. That is to say, the U.S. dollar financial hegemony not only has a unique mechanism of action, but also tremendous benefit shows.With the end of the Cold War, the euro's birth, the sudden emergence of the Chinese economy, the largely swelling U.S. twin deficits and the rising cost for U.S. dollar to maintain its hegemony, both the prerequisite of the generation of dollar hegemony and the bases for the cycle of U.S. dollar cash flow have changed a lot, which means U.S. dollar hegemony also is facing many variables.This paper analyses the relationship between the U.S. dollar hegemony and international system in a contrary, dialectical and historical manner. It elicits that one of the premises for the survival of the dollar hegemony is the continual entering of market-economy countries into the sequence of periphery countries, which bases on analyses of preconditions for dollar hegemony combined with Dooley's center-periphery theory. It also points out that the oil dollars and East Asia dollars are the two pillars of U.S. dollar hegemony. This is the innovations of this article.This paper is divided into four chapters, the first chapter is about the premises for survival of U.S. dollar hegemony----the free market economy, free will and common interests. If the first chapter is "source "of the U.S. dollar hegemony, then the second chapter is its "flow". It mainly expatiate the two pillars of U.S. dollar hegemony and their acting principles and unique status. This is a major part of this article. The main element of Chapter III is outlook for the development trend of hegemony, focusing on the factors from the United States and non-American factor. The last part is the conclusion which makes a pre-judgment on the future status of U.S. dollars. |
PDF Full Text Request