World reserve currency status follows the leader in manufacturing and trade. Maintaining dollar hegemony was never going to be feasible after de-industrialization, but short-sighted decisions like weaponizing SWIFT have accelerated its decline. As the dollar is gradually shunted out of world trade, the US will be less able to export its inflation abroad. The implications won’t be pretty.
Letting the Ukraine related sanctions chronically fester continues to be a tremendous strategic error.
Helping an ally interminably not lose, but not helping them win, has been a strategic error on many counts.
The benefits of leverage are dramatically maximized by using them as little as possible, on the fewest targets as possible, for the shortest periods intervals.
But instead of finding a way back, the US has expanded its sanctions (er, tariffs) to all its enemies (uh, trading partners), giving everyone strong signals that no relief is coming.
Illuminating article. And if the yuan bonds information is real, it won't even take 4 years for a lot of global finance to move away from the dollar.
It might be tough for the US to accept the higher cost of global resources (and thus become a poorer country) but maybe this gradual decline in dollars status is what the administration hopes is the best case.
World reserve currency status follows the leader in manufacturing and trade. Maintaining dollar hegemony was never going to be feasible after de-industrialization, but short-sighted decisions like weaponizing SWIFT have accelerated its decline. As the dollar is gradually shunted out of world trade, the US will be less able to export its inflation abroad. The implications won’t be pretty.
Letting the Ukraine related sanctions chronically fester continues to be a tremendous strategic error.
Helping an ally interminably not lose, but not helping them win, has been a strategic error on many counts.
The benefits of leverage are dramatically maximized by using them as little as possible, on the fewest targets as possible, for the shortest periods intervals.
But instead of finding a way back, the US has expanded its sanctions (er, tariffs) to all its enemies (uh, trading partners), giving everyone strong signals that no relief is coming.
Someone’s compass has the N and S reversed.
And we are living in a Kurt Vonnegut novel.
https://archive.ph/7Zeti
Oh, the joys of isolationism.
Illuminating article. And if the yuan bonds information is real, it won't even take 4 years for a lot of global finance to move away from the dollar.
It might be tough for the US to accept the higher cost of global resources (and thus become a poorer country) but maybe this gradual decline in dollars status is what the administration hopes is the best case.
Kinda like the UK.
Lots of similarities, almost like you could predict it by reading history