The Humbling of the Once Almighty Dollar

3 hours ago

Donald Trump's Iran debacle has weakened U.S. credibility as both a reliable ally and invincible enemy.
The war accelerated the rise of alternative payment systems, diminishing the dollar's non-military coercive power.
Despite U.S. economic parity with China and the EU, the dollar remains dominant in global finance, with 89% of foreign exchange transactions involving it.
The dollar's role as the 'vehicle currency' allows U.S. authorities to monitor and block transactions, a tool used for sanctions like those on Iran.
Trump's withdrawal from the JCPOA strengthened Iran's position and highlighted the dollar's vulnerability as China's yuan and CIPS offer alternatives.
Countries like Iran now use yuan and cryptocurrencies to evade U.S. sanctions, and even U.S. allies are considering adopting Chinese payment systems.
While the dollar's dominance in ordinary business is not threatened, its effectiveness as a financial weapon has declined, reducing U.S. global influence.
Overall, Trump's actions have diminished America's military, economic, and diplomatic power, eroding trust among allies like Afghanistan.

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