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.

  • @Bronstein_Tardigrade
    1•2 years ago

    I doubt the US would discontinue spending freely on the military. Without the ability to run roughshod over the rest of the world, they would turn their military power inward. It’s already happening with the police and border patrol.