• @pgtl_10@lemmygrad.ml
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    61 year ago

    Also the adults are starting to realize this war has convinced non-Westerners to start disassociate with the West particularly alternatives to the dollar and SWIFT system.

    • ☆ Yσɠƚԋσʂ ☆OP
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      91 year ago

      I think that’s the thing that scares people who understand how economics work in US the most. Russian trade with China and India is already a huge chunk of the economy that’s become dedollarized, and turns out that Russia is pretty central for commodity trade for lots of other countries as well. Once the channels of trade outside the dollar are established there is no incentive to go back. Any countries that’s not a vassal of the US now has a strong incentive to trade outside the dollar and, thanks to the economic war US started, now has the means to do so.

      US being able to print dollars whenever they want is largely premised on the idea that there is always global demand for dollars. And if this demand starts dipping that becomes a huge problem for servicing the insane national debt US built up.

      I also expect that this is the end of siege warfare US has been able to use so effectively via sanctions. US no longer has the ability to coerce countries through economic violence.