The American Union Project

The Biden Administration's Greatest Failure: Weaponizing the Currency System

US Treasury Secretary Janet Yellen confirmed that sanctions led to BRICS kick-start the global de-dollarization initiatives. The US pressed sanctions on Russia in February 2022 for invading and waging war against its neighboring country Ukraine. Since then, BRICS has been using all methods to cut ties with the US dollar and use local currencies like the Chinese yuan for trade settlements.

The Biden Administration's decision to weaponize the currency system stands as one of its most significant missteps. This approach, intended to exert economic pressure on geopolitical adversaries, has instead triggered a chain reaction among the BRIC nations (Brazil, Russia, India, China, and South Africa) to de-dollarize their economies.

BRICS weaponized development by convincing developing countries that their economies could collapse if the US pressed sanctions on them. Developing countries and BRICS members began using the Chinese yuan for trade with China and not the US dollar. Russia wholeheartedly accepted the Chinese yuan for oil payments making it the most used currency for trade in two years.

The potential addition of Saudi Arabia to this bloc, with its contemplation of ceasing trade in U.S. dollars, further threatens the soft power of the United States. In response to rampant inflation driven by fiat currency policies, the BRIC nations have proposed a gold-backed currency, presenting a compelling alternative. To address this crisis, we propose a new hard-currency standard using the Bitcoin protocol, paired with the American Union initiative.

The Risks of De-Dollarization

1. Erosion of U.S. Influence: The U.S. dollar has long been a cornerstone of global trade and finance. As BRIC nations and potentially Saudi Arabia move away from the dollar, the United States faces a significant decline in its ability to influence global economic policies and practices.

2. Inflationary Pressures: The reliance on fiat currency and the accompanying inflationary policies have eroded confidence in the dollar. The prospect of a gold-backed BRIC currency further diminishes the appeal of the dollar, potentially accelerating its devaluation.

3. Loss of Soft Power: The dominance of the U.S. dollar has been a key element of American soft power, enabling the U.S. to project influence without direct intervention. The shift towards alternative currencies undermines this soft power, limiting the United States' ability to shape international norms and policies.

Proposed Solution: A New Hard-Currency Standard

To counteract these trends, we propose establishing a new hard-currency standard using by forking the Bitcoin protocol. This digital currency, backed by a hard asset, offers several advantages:

1. Unhackable and Secure: Bitcoin's blockchain technology ensures unparalleled security and transparency, reducing the risk of manipulation and fraud.

2. Hard Asset Backing: Unlike fiat currencies, Bitcoin's fixed supply creates an inherent value, protecting it from the inflationary pressures that plague traditional currencies.

3. Global Acceptance: As a decentralized currency, Bitcoin transcends national borders, facilitating international trade and finance without the need for a dominant national currency.

The American Union Initiative

To enhance the impact of this new currency standard, we propose the creation of the American Union. This initiative combines the economic integration goals of the BRIC nations with the membership framework of the European Union, extending American influence through a new governance model.

Key Components:

1. Expanding Membership: Incorporate adversarial countries as administrative states within the American Union, extending the benefits of the U.S. Constitution and promoting democratic values.

2. Promoting Stability: By integrating these nations, the United States can address the root causes of instability, fostering security and economic growth.

3. Cultural Integration: Promote a shared identity and commitment to democratic values through cultural understanding and exchange.

4. Economic Integration: Create a unified economic framework that leverages the new Bitcoin standard, enhancing trade and investment opportunities across member states.

Benefits of the American Union

1. Enhanced Security: Directly addressing threats at their source will improve national and global security.

2. Economic Growth: Integrating new states can expand markets and create economic opportunities.

3. Cultural Exchange: Promoting cultural understanding and integration will strengthen the global influence of American values.

4. Global Stability: A unified American Union can lead to greater global stability and a more cohesive international order.

By adopting a new hard-currency standard using the Bitcoin protocol and implementing the American Union initiative, the United States can counter these challenges, restore confidence in its economic leadership, and promote a secure, stable, and prosperous world underpinned by American democratic values.