economy
The US-Israel war on Iran is accelerating de-dollarization and America’s decline
De-dollarization promises to reorder the world, reducing American power globally
TL;DR
- The war on Iran incurs significant human and financial costs, estimated at $12 billion per week for the US.
- Iran's actions in the Strait of Hormuz are causing inflationary pressures on the global economy, particularly affecting oil and natural gas prices.
- Iran is reportedly collecting tolls in Chinese yuan, signaling a challenge to the dollar's dominance.
- The US dollar's status as the global reserve currency enables the US to borrow extensively and exert influence through sanctions.
- Sanctioned countries like Russia are developing alternative financial systems (SPFS, CIPS) to bypass dollar-based transactions.
- De-dollarization could lead to reduced American global power, increased borrowing costs, and potential austerity in the US.
- The shift away from the dollar is driven by a desire to reduce reliance on US financial leverage and seek greater economic stability.