Donald Trump took over the U.S. presidency on Friday. He has made quite interesting statements since being elected. Of course, these statements are not official, but they give us some important clues about the new era in the U.S. Trump's protectionist statements, and other remarks about invigorating the economy through employment-friendly policies and public expenditures, have been defined as somewhat exaggerated warming statements which are not rational at this stage of globalization. But we have to be careful that all of Trump's statements stand out as consecutive building blocks, meticulously worked out to meet the fundamental economic problems that the U.S. has been exposed to since the 2008 crisis.

Today, the U.S. does not have an economy that permanently creates employment that has ensured the balance between savings and investments and between external affairs and the budget. It has huge deficits in savings, investments, budget and foreign trade. The U.S. has financed these deficits through the dollar, the global reserve currency, which it has maintained through its political hegemony.

One of the most striking recent discussions is about the future of the dollar. For nearly 50 years, the U.S. has prevented other countries from independently using their money systems thanks to the dollar's strength. The recent decline in the U.S.'s production power, parallel to China's increasing production and trade, has led to a discussion of the power of the dollar. Another issue to be discussed, however, is that the domination of a single currency as an international reserve currency might have some global costs. This is because the weakening of a single currency will lead to a hot money problem in other countries, which is called the original sin in economics literature. One of the main reasons for the outbreak of the first, second and third-generation crises starting with the Bretton Woods system is the weakening of the dollar.

Therefore, when the upside pressure of exchange rates cannot be controlled by dollar reserves in economies that are extremely dependent on the dollar, it leads to devaluation, money supply increase and inflation. The last financial crisis in 2007 caused price bubbles and an inflation problem.

From time to time, the U.S. economy used the advantages of having the international reserve currency and implicitly guided global markets through it. In order to achieve this, the Federal Reserve (Fed) kept the exchange rate low through monetary expansion. While doing this, however, it ignored one thing, which has weakened the role of the dollar as global reserve money. As this role weakened, the U.S. economy's trade deficit came to light.

When President Richard Nixon removed the dollar's dependency on gold in 1971, the dollar, and the Bretton Woods monetary system which was founded under the U.S.'s leadership after World War II, came under question. In other words, the triple deficit of the U.S. economy, which increased since the beginning of the 1970s, was one of the fundamental problems of the global economy. But this fundamental problem concerned developing and underdeveloped countries rather than the U.S. until 2008.

This was because the U.S.-dominated global system was built through the financing of the center (the U.S) and spread economic and political models, which transferred funds to the center from the periphery, through Bretton Woods's institutions like the International Monetary Fund (IMF) and the World Bank. In fact, the so-called solutions we are discussing through exchange rates nowadays are the discussions that we make through the models which were imposed on us within this framework in the past. For instance, the central banks of many countries, including Turkey, printed their local currencies, but failed to implement unique and developmental economic policies.

Until the end of the 1990s, we applied the IMF's prescriptions as both monetary and fiscal policies. These programs, which were based on transferring funds to the outside (the U.S.-centric global system), merely built an import and consumption economy that was dependent on debts and outside financial resources. Until recently, Friedmanian approaches such as strict monetary policies and fiscal discipline and anti-inflationary palliative economic policies have just stabilized financial markets. For instance, we implemented a floating exchange rate regime, but we spoiled the industry by targeting the exchange rate with high interest rates and keeping the Turkish lira overvalued. We brought industrial profits down by importing cheap goods from Asian countries that have been the factories of the U.S. and Europe.

Throughout this period, the triple deficit of the U.S. economy did not come to light, as developing countries succumbed to deception. But right now, this game is being spoiled. Developing countries, particularly Asian ones, have come to build a new, unique, and developmentalist economy with a new political will.

Turkey did not sign the 20th standby agreement with the IMF in 2008. However, the bureaucracy could not keep up with this rise of the political will. The Central Bank of the Republic of Turkey (CRBT) is striving to break this circle now. I elaborated on the CRBT's steps to this end in the previous article. These steps indicate that a new approach in the central banking system is on the horizon.

Will this shift in Turkey and other developing countries change the U.S.-centric global economic hierarchy? We can say "yes" by looking at the statements that Trump has made in a hurry. This change has already begun.

When the euro was born, a total of 71 percent of the world's official foreign exchange reserves were in the dollar. Now this rate is around 60 percent and it is constantly falling, showing that the dollar is slowly losing its ability of being reserve money. The dollar continues to melt away in international trade and official exchanges between countries as well.

Major economies such as China and Russia are quickly implementing institutions that highlight trade in local currencies and reduce the pressure of the dollar on their economies. Turkey is carrying out studies with this purpose as well. There are an increasing number of official and academic studies in this regard. A report prepared by the United Nations in 2010 called on states to abandon using the dollar as the single reserve currency. Also, the Gulf Cooperation Council (GCC) has recently voiced its desire for an independent reserve currency.

The U.S. also sees these developments now. Therefore, before officially taking the presidential office, Trump made his most important statement ever. He said the U.S. dollar is overvalued and this level will kill the country's exports - meaning that he would not be a traditional Republican president. He foresees that U.S. cannot go on with the overvalued dollar, which relies on the U.S.'s militarist power alone.

Trump sees the truth as he comes from a challenging business world. He will not repeat Barack Obama's mistakes and will not pave the way for a new crisis by overvaluing the dollar as Bill Clinton did in 1995. He will be rational. Let us accept that this is a new period.