Following the American Civil War, which ended slavery in 1865, the U.S. accelerated its efforts to lead the capitalist system and the Atlantic Alliance. Of course, it was also looking out for its position and interests in the Pacific. On one hand, starting from 1858, successfully completing the first underwater communications cable between the two sides of the Atlantic until 1865; it has created a global network where more than $10 trillion in trading and financial transactions take place daily; on the other hand, by bringing the Panama Canal to life in 1914, it has strengthened its dominant position in global maritime trade corridors. In the 1930s, in addition to the sterling and frank block, the dollar block was established. The U.S. laid the foundations of Bretton Woods in the 1930s.
In 1941, the U.S., which officially took over the leadership of the capitalist system and the Atlantic Alliance from the United Kingdom with the Atlantic Treaty, from 1944 to 1950, created a modern empire, where finance, diplomacy and security system would be entirely under its responsibility with the International Monetary Fund (IMF), the World Bank, the United Nations, the General Agreement on Tariffs and Trade (GATT) and NATO.
With the Bretton Woods Agreement, where the capitalist system and the countries part of the Atlantic Alliance were included, from 1947 on, it turned the U.S. dollar into a global currency for the entire world. However, the most fundamental rule of this system established by the U.S. was the gentlemen's agreement that the U.S. would never use the dollar as a weapon or threat against other countries.
The U.S. broke this rule with President Donald Trump, maybe even destroyed it. This is why one of the fundamental pillars of the American global empire is about to collapse. In 2019, the European Union introduced a new euro-based system as an alternative to the global payment system based on the dollar. Last weekend, where the world's central banks came together in Jackson Hole, the world economic circles carefully following the meeting for the last 20 years have heard for the first time from a president, namely Bank of England President Mark Carney, that the dollar is now too "dominant" and that is should leave its place to a new "digital currency."
German Chancellor Angela Merkel's messages over the last two years and French President Emmanuel Macron's statements at the G7 Summit, and the discussions on the dollar, show that the U.S.' patronage is getting increasingly harsh and is lacking empathy and tolerance, and is now open to serious debate.
I would like to emphasize; we will have a harsh and unusual fall season for global markets. We have to reinforce the floor that will allow Turkey to maximize its benefits from this global fight.
G7 and the Atlantic fracture
The global system is undergoing a heavily painful period of restructuring. This is deepening the differences of opinion between the Atlantic Alliance's dominant countries, the U.S., the U.K., Germany and France and the visible fracture in the Atlantic Alliance. So much so that after the 47th G7 Summit last week that was called by France, in order not to give hopelessness to the global public on the differences of opinion, a modest and limited declaration was made. One of the primary statements in the declaration was that in order to compensate for the destruction caused by the trade wars and to resolve and eliminate global trade disputes more quickly, the operation of the World Trade Organization (WTO) should be changed.
In addition to this, in order to virtually end the tax evasion capabilities of international capital that takes advantage of the differences in tax legislation between countries, the determination to find a solution in the eyes of the Organization for Economic Co-operation and Development (OECD) in 2020 in terms of an international tax was also included in the statement.
As for Iran, the leaders have shared that they have a consensus on the fact that Iran should never have nuclear weapons and on establishing peace and stability in the region. For the Russian occupation of Ukraine, on the other hand, they have agreed that France and Germany will hold a summit in the Normandy format in the coming weeks to find a concrete solution.
The declaration also stressed that the G7 countries support a permanent cease-fire in Libya. While the statement included a call that invites all affected parties and local actors affected by the war to cooperate and organize a well-prepared international conference, it was also emphasized that the efforts of the U.N. and the African Union were supported. With regards to escalating tension in Hong Kong, it called to refrain from violence by referring to the importance of the China-England Joint Declaration signed in 1984. As you can see, there are no statements regarding the serious damage caused by global terror, global climate change or global trade and exchange wars. Experts state that in a new world where countries such as China, India, Russia and Brazil are not on the table, the G7 is rapidly losing its weight and that the deepening crack in the Atlantic Alliance quickly deteriorates the effectiveness of the G7.