Every time we read somewhere that some countries or big companies have switched from trading in dollars to their own currencies, it has consequences not only financial but also purely military. It means that the US military can buy slightly fewer tanks, missiles, bullets, fewer secret agents or whatever. Any trade in rupees instead of trade in dollars undermines American strength.

And who has done the most to stop trading in dollars? Neither the Russians nor the Chinese, but the Biden administration. It is only now becoming apparent how incredibly stupid the sanctions were, which did not prevent Russia from developing a war machine but motivated much of the world to flee the dollar. If you deter India, half of Africa and half of Latin America, the Czech Republic and Estonia will not make up for it.

They have destroyed their military power (or ability to finance military power) themselves!

Also note that there is not a single (!) voice that has publicly said that freezing (stealing?) Russian money will erode American power more noticeably than Russian power. And so it often is. Freedom of speech is an insurance policy against stupid mistakes. Regimes that suppress it make more mistakes. Groups in which free discussion does not take place make more mistakes. This also applies to opposition groups, not just pro-government groups.

Trump will try to restore confidence in the dollar, but the damage that has already been done is irreversible.

You can buy me a coffee here.

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