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.
Why is this a given?
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??”.