Of course the occupied nations still recieve a lot of dollars via the occupation itself, but yes these tariffs will contribute to the overall trend dedollarization.
A global sovereign debt crisis due to US monetary policy is not unprecedented, and having a single global reserve currency has only been a very short blip in the history of civilization.
That is not what was meant as unprecedented. Of course US policy has triggered global debt crises before. The weakest countries in the world have been in one for years at this point simply due to high FED interest rates. Rather, what is unprecedented is how the underlying assumptions of US policy would render the washington consensus financially obsolete. One thing is to say that neoliberalism is hurtful austerity. While that’s the truth, what is also true is that oligarchy benefits from the sort of measures countries have taken when dealing with dollar scarcity - hyperinflation, devaluation, and export volume increases.
If we get to a point where South Korea cannot acquire dollars and there’s nothing it can do to finance itself and its trade, if every single thing that the US government claims to believe about its consumer market’s importance in the world is true and nobody except China can retool their economies to face the new normal then this isn’t just another sovereign debt crisis. It is much bigger than that.
Of course the occupied nations still recieve a lot of dollars via the occupation itself, but yes these tariffs will contribute to the overall trend dedollarization.
A global sovereign debt crisis due to US monetary policy is not unprecedented, and having a single global reserve currency has only been a very short blip in the history of civilization.
That is not what was meant as unprecedented. Of course US policy has triggered global debt crises before. The weakest countries in the world have been in one for years at this point simply due to high FED interest rates. Rather, what is unprecedented is how the underlying assumptions of US policy would render the washington consensus financially obsolete. One thing is to say that neoliberalism is hurtful austerity. While that’s the truth, what is also true is that oligarchy benefits from the sort of measures countries have taken when dealing with dollar scarcity - hyperinflation, devaluation, and export volume increases.
If we get to a point where South Korea cannot acquire dollars and there’s nothing it can do to finance itself and its trade, if every single thing that the US government claims to believe about its consumer market’s importance in the world is true and nobody except China can retool their economies to face the new normal then this isn’t just another sovereign debt crisis. It is much bigger than that.