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Western sanctions on Russia are leading to trade being denominated in other currencies between eg, India and Russia. Iran and China are both in on this too.

Aside from a general undermining of the US, what are the implications?

As far as I can see, some would be:

  • The US ability to interfere with other countries’ foreign currency reserves is severely limited (since those reserves don’t need to be in dollars)
  • The US ability to print endless money might come under pressure, potentially endangering its ability to spend freely on its military
  • Financialisation and de-industrialisation bite harder as US financial services might become less useful and America has lost much of its advantage in actually making stuff.
  • Lessened capacity for the US to exert hegemony over other states via fiscal and monetary domination/coercion (a la gramsci)

Is that stuff right? And what else is there?

PS, sorry if this isn’t quite the right community, I’m new here.

    • 133arc585
      108·
      1 year ago

      might look tempting, but another totalitarian authority would have to swoop into the power vacuum created by dedollar-efforts.

      Why is this a given?

      is this for community meant for tankies??

      You don’t have to be a “tankie” to see that harm of maintaining dollar hegemony, or to see the potential value in alternative currencies gaining support. And using “tankie” here is just meaningless; you’d add as much value saying “is this community meant for wokies??”.