What if Bretton-Woods Ends?

Donald Trump, runs for his presidential campaign for nearly a year. And he seems much more successful than we can imagine, even more than he can imagine. He is the official Republican candidate now. And he does not seem an easy bite for Hillary Clinton. Indeed, his percentages in polls are increasing steadily and consistently.

Donald Trump is a fracture in US politics, like Bernie Sanders. But I’m going to be focus on Trump and possible effects on foreign policy rather than talking about Bernie Sanders and his imaginary socialism.

Mr. Trump, declared that he wants to keep US away from trade agreements such as NAFTA or TTIP; and he declared also he supports United States to resign from IMF and World Bank.

United States is the founder and the supporter of Bretton-Woods economics. To build this financial and political system, whole world paid a price. We had two world wars. It was not enough actually. We reformed it in mid 70’s to act better against socialism and Eastern Block. It worked actually. It worked succesfully. We have beaten socialism in all areas. It was the end of a war. But it wasn’t the end of Bretton-Woods economics. It was the beginning of Pax Americana.

Russia, a country which is highly under-developed to be a super power, a country which is underpopulated, and a country which is unsuitable for basic human needs because of climate; decided to challenge the United States hegemony in political economic situation over the world. They cooperated with China and India in the first hand. They had many things in common. They had problems with population and development. But they weren’t easy bites either. Especially China, who is the biggest trading actor in the market. Not only trade, but also finance: seven out of ten biggest banks in the world are now owned by Chinese state, capital flows to the other side of the Pacific with a great confidence. It’s a clear challenge now, to the North Atlantic.

Putin Russia and China clearly challenges to the US domination over petrodollar recycling. And President Obama sees China, not Russia, as the clear enemy. He is trying to establish a stronger position in the Pacific trade against China, also taking sides against China over the territorial waters dispute. Barack Obama turns his back to Atlantic, while he is getting busy with Pacific. He literally stated that there is no such “special relationship” with anyone. He also seems not caring about what goes on Mediterranean and Middle East. He even made a “truce” with Iran to focus on Pacific issues better. He, clearly, does not see Russia as his biggest enemy. The biggest threat is China to United States.

Our subject, Donald Trump; does not see Russia as an enemy, as he declares. He thinks Putin is a nice guy and Russia is a good friend of United States. He also thinks China is a bigger threat to the interests of United States. But his moves are very dangerous which weaken United States in the economical and political arena. The IMF and the World Bank, together with the North Atlantic agreements makes United States biggest actor in the trade. USA is the most decisive actor despite the growing influence of China. U.S dollar is the most important figure of US dominance in every single street of the world. Every minor change in dollar, makes somebody happy and another sad. The wheel is in the hands of United States, even China occupies the whole ship with its large population and mass production.

But what about Trump? What if he destroys all the earnings of two world wars and a cold war, what if he destroys Bretton-Woods atmosphere and petrodollar recycle? Normally, these kind of moves come from the parties which is not happy with the current situation. In this table, it is Russia or China. And yes, they are literally against U.S decisiveness over world trade.

If Donald Trump wins, which is possible, hard days are ahead of us. Because every single change in economic distrubiton is possible with the support of a clear victory in the battle ground. These moves may have terrible consequences for world peace.

Yes, Trump is right when he focuses on problems and issues about Pacific rather than Atlantic. But he is wrong about Russia. A powerful Russia in the Europe can be more dangerous with its satellite states, and this scenario seems more possible in future than it seemed 5 or 10 years ago. Every US president should remember not to let freely Russia act in Mediterranean sea and Eastern Europe. It is the first rule to back your allies when you have alliances. America is already great, let it stay like that.