1. Global currency dominance. Commodities are essential raw materials for industrial production. Countries around the world export goods in exchange for foreign exchange, and then use foreign exchange to buy goods in exchange for raw materials. Because raw materials are denominated in dollars, it is natural to expect to get dollars when trading finished products, so that the whole capital turnover can be completed in the same currency. From the perspective of the United States, the dollar has become a global currency and has direct purchasing power in any corner of the world. The American central bank has actually become the world's central bank, and the United States has the right to issue money all over the world.
2. Commodity pricing power. Commodities are denominated in dollars, and the United States, as the issuer of dollars, naturally has the pricing power of commodities. The pricing power is actually in the hands of American consortia (mostly privately owned). Although they have no obligation to sacrifice profits to cooperate with American policies, they have ensured the interests of the United States and increased their interests to some extent. Therefore, it can be said that the US government has indirectly mastered the pricing power of international commodities, and can make commodity prices fluctuate in the direction favorable to the United States when necessary.
3. Financial advantages. Through the above two advantages, American financial institutions can expand globally, conduct investment and financing and various capital operations on a global scale, and master the resources of various industries.