Are the glory days of the USA coming to an end, will they share the fate of Rome? The history of great powers – why the USA is now at a crossroads.
In recent weeks, the world has been watching with concern the bold and controversial decisions of the United States under the leadership of Donald Trump — from imposing tariffs on Canadian products to surprising ideas about annexing Greenland. These actions, combined with a tense immigration policy and a "divide and rule" strategy, have created uncertainty in the markets and increased volatility. To understand today's actions of the United States and the decisions of their leaders, such as Donald Trump, one must look back in time and understand how the USA became a global superpower. No superpower emerges from nowhere — its power is the result of history, wars, crises, and strategic decisions. It is the past, from the Bretton Woods era to the petrodollar era, that has shaped the dollar's current position as the world's currency. Understanding this journey allows us to better see why the USA fights to maintain its "dominance" and how it tries to respond to new challenges that may shake its global position.
What exactly is a superpower? It is not just a state with a strong economy or a well-developed army. A superpower is an entity that has a real influence on the entire world order – it shapes it according to its own rules, imposes its regulations on other countries, and its decisions resonate in global markets and international politics. Only a few countries in the history of humanity have achieved this status. And what distinguished them was not only military superiority but, above all, control over the world's currency. Because if one can decide in which currency trade takes place, if one can print money that others must use to buy goods, then the power of that country becomes almost absolute.
History shows us that dominant powers have almost always been associated with a dominant currency. The Roman Empire had its denarius – the first truly "global" currency used throughout the area controlled by Rome. Spain, at the height of its colonial power, introduced the real de a ocho – a silver coin used from America to Asia. France in the 18th century may not have been the only power, but its franc was one of the most important currencies in Europe. And then came Great Britain, whose pound sterling became a global means of payment in the 19th century – a natural consequence of the fact that the British Empire controlled almost one-quarter of the world. And finally, the 20th century – the era of the American dollar.
But before the United States became the absolute global hegemon, its history looked a bit different. Even before World War II, the USA, despite its enormous economic power, remained somewhat on the sidelines of international conflicts. They did not engage in wars as Europe did, avoiding excessive military expansion. However, this isolationism ended when events in 1941 – the attack on Pearl Harbor – drew them into the war.
And here begins the story of their global dominance. They ended the war as one of the few countries whose industrial infrastructure was not destroyed. Europe lay in ruins, Japan was scorched by bombings, and the United States became the undisputed victor. They had a strong economy, a powerful industry, and – most importantly – control over the global financial system. It was in 1944, during the Bretton Woods conference, that it was established that the dollar would be the world currency, linked to gold, and the International Monetary Fund and the World Bank would be under American influence.
This was a turning point. Because from that moment on, the USA could finance its expenditures without significant restrictions – their currency became the standard, and other countries had to use it. But this system did not last long in its original form. Already in 1971, President Nixon decided to sever the dollar's link to gold. And what did that mean? That the dollar became a fiat currency – its value was based only on trust in the USA, not on real backing in precious metals.
At that time, the United States also found a new way to maintain dominance – the petrodollar. By entering into a secret agreement with Saudi Arabia, they guaranteed that oil would only be sold for dollars. And since oil was (and still is) the lifeblood of the global economy, every country in the world had to hold dollar reserves to be able to purchase it. This clever move ensured that Americans maintained further control over international finances, as the dollar became not only a medium of exchange but the foundation of the global economy.
In the 1980s, the USA transformed into a financial empire. Globalization made the dollar dominate even more – US capital markets attracted investors from all over the world, Wall Street became the heart of global financial trade, and the US banking system began to dictate terms to other countries.
But no power lasts forever. And although the USA is still the most powerful country in the world, more and more signs indicate that the golden age of the dollar may be coming to an end.
The first serious signal was the financial crises, especially the one in 2008 – the largest since the Great Depression of the 1930s. It showed how dependent the American economy is on speculation and debt. And since the USA finances its budget by issuing billions of bonds, the natural question arises – how much longer will the world trust the dollar?
To this, the growing role of China adds, which is trying to weaken the dollar by promoting its own currency – the yuan – in international trade. Russia and other countries are also taking steps towards de-dollarization. The significance of gold and cryptocurrencies is also increasing, which for many are becoming alternative forms of storing value.
Will the USA maintain its position? Will the dollar remain the world's reserve currency? History shows that every empire eventually loses its dominance – Rome, Spain, Great Britain… Will the USA be an exception?
We will answer this question in the next chapter of this story, examining the strategies that the United States employs to maintain its hegemony and whether they still have a chance for success.
In recent weeks, the world has been watching with concern the bold and controversial decisions of the United States under the leadership of Donald Trump — from imposing tariffs on Canadian products to surprising ideas about annexing Greenland. These actions, combined with a tense immigration policy and a "divide and rule" strategy, have created uncertainty in the markets and increased volatility. To understand today's actions of the United States and the decisions of their leaders, such as Donald Trump, one must look back in time and understand how the USA became a global superpower. No superpower emerges from nowhere — its power is the result of history, wars, crises, and strategic decisions. It is the past, from the Bretton Woods era to the petrodollar era, that has shaped the dollar's current position as the world's currency. Understanding this journey allows us to better see why the USA fights to maintain its "dominance" and how it tries to respond to new challenges that may shake its global position.
What exactly is a superpower? It is not just a state with a strong economy or a well-developed army. A superpower is an entity that has a real influence on the entire world order – it shapes it according to its own rules, imposes its regulations on other countries, and its decisions resonate in global markets and international politics. Only a few countries in the history of humanity have achieved this status. And what distinguished them was not only military superiority but, above all, control over the world's currency. Because if one can decide in which currency trade takes place, if one can print money that others must use to buy goods, then the power of that country becomes almost absolute.
History shows us that dominant powers have almost always been associated with a dominant currency. The Roman Empire had its denarius – the first truly "global" currency used throughout the area controlled by Rome. Spain, at the height of its colonial power, introduced the real de a ocho – a silver coin used from America to Asia. France in the 18th century may not have been the only power, but its franc was one of the most important currencies in Europe. And then came Great Britain, whose pound sterling became a global means of payment in the 19th century – a natural consequence of the fact that the British Empire controlled almost one-quarter of the world. And finally, the 20th century – the era of the American dollar.
But before the United States became the absolute global hegemon, its history looked a bit different. Even before World War II, the USA, despite its enormous economic power, remained somewhat on the sidelines of international conflicts. They did not engage in wars as Europe did, avoiding excessive military expansion. However, this isolationism ended when events in 1941 – the attack on Pearl Harbor – drew them into the war.
And here begins the story of their global dominance. They ended the war as one of the few countries whose industrial infrastructure was not destroyed. Europe lay in ruins, Japan was scorched by bombings, and the United States became the undisputed victor. They had a strong economy, a powerful industry, and – most importantly – control over the global financial system. It was in 1944, during the Bretton Woods conference, that it was established that the dollar would be the world currency, linked to gold, and the International Monetary Fund and the World Bank would be under American influence.
This was a turning point. Because from that moment on, the USA could finance its expenditures without significant restrictions – their currency became the standard, and other countries had to use it. But this system did not last long in its original form. Already in 1971, President Nixon decided to sever the dollar's link to gold. And what did that mean? That the dollar became a fiat currency – its value was based only on trust in the USA, not on real backing in precious metals.
At that time, the United States also found a new way to maintain dominance – the petrodollar. By entering into a secret agreement with Saudi Arabia, they guaranteed that oil would only be sold for dollars. And since oil was (and still is) the lifeblood of the global economy, every country in the world had to hold dollar reserves to be able to purchase it. This clever move ensured that Americans maintained further control over international finances, as the dollar became not only a medium of exchange but the foundation of the global economy.
In the 1980s, the USA transformed into a financial empire. Globalization made the dollar dominate even more – US capital markets attracted investors from all over the world, Wall Street became the heart of global financial trade, and the US banking system began to dictate terms to other countries.
But no power lasts forever. And although the USA is still the most powerful country in the world, more and more signs indicate that the golden age of the dollar may be coming to an end.
The first serious signal was the financial crises, especially the one in 2008 – the largest since the Great Depression of the 1930s. It showed how dependent the American economy is on speculation and debt. And since the USA finances its budget by issuing billions of bonds, the natural question arises – how much longer will the world trust the dollar?
To this, the growing role of China adds, which is trying to weaken the dollar by promoting its own currency – the yuan – in international trade. Russia and other countries are also taking steps towards de-dollarization. The significance of gold and cryptocurrencies is also increasing, which for many are becoming alternative forms of storing value.
Will the USA maintain its position? Will the dollar remain the world's reserve currency? History shows that every empire eventually loses its dominance – Rome, Spain, Great Britain… Will the USA be an exception?
We will answer this question in the next chapter of this story, examining the strategies that the United States employs to maintain its hegemony and whether they still have a chance for success.
2 users upvote it!
0 answers