The Humbling of the Once Almighty Dollar

alexjplant•about 2 hours ago

I was about to link to something I'd read in Foreign Policy a few days ago until Krugman beat me to the punch:

> I don’t want to overstate the case here. The dollar’s role as the dominant currency for ordinary business is not under threat. A new article in Foreign Policy by Agathe Demarais is titled “China’s de-dollarization drive has hit a wall.” [1]

The headline is this:

> Iran’s ability to withstand American pressure has demonstrated that U.S. sanctions are a lot less effective than in the past given that rogue actors can use the yuan and CIPS as a work-around.

The dollar as an instrument of offensive diplomacy is now weakened, not as the currency of international transaction. That being said Iran's economy isn't exactly doing numbers at the moment so even this caveat has a caveat.

[1] https://foreignpolicy.com/2026/06/24/china-dollar-dedollariz...

aeternum•about 1 hour ago

Perhaps it is the use of the dollar as an instrument of offensive diplomacy that is weakening it.

Economic sanctions used to be rare, between 2000 and 2021 they grew by 1000% and the list is something like 17,000 entities long.

Is USD still a currency or is it now more like Robux: Swiftly confiscated if you violate the TOS?

throwaway-blaze•about 3 hours ago

Someone needs to make an inverse Krugman index like the one they did for Jim Cramer.

You could make an argument that the Yuan could be an alternative to USD as a mechanism of international payments, but you ignore the danger of working in a currency controlled by a country with no rule of law.

Krugman is so blinded by Trump hatred that he can't be objective. You dont have to be a MAGA person to see this post is terribly stilted.

WalterGR•about 2 hours ago

The weakening of the dollar is intentional by this administration. See e.g. https://www.hks.harvard.edu/centers/mrcbg/programs/growthpol...

sbseitz•about 1 hour ago

What an L take.

postflopclarity•about 2 hours ago

anybody who _doesn't_ hate trump simply isn't being objective.

objectively, he's someone you should hate.

the post is not stilted. it's just hard for MAGAs to come to grips with reality.

> you ignore the danger of working in a currency controlled by a country with no rule of law.

unlike the US, which has a robust rule of law /s

jleyank•about 2 hours ago

The casual disregard of international treaties and responsibilities coupled by the arbitrary tariffs and other economic actions makes the us untrustworthy and unpredictable. Countries hate the former and business hate the latter. Therefore, if the us can be avoided it will be.

talon8635•32 minutes ago

I DO hate him, and still find this black and white thinking unsettling, though not uncommon. Has all of the western world completely surrendered to the nuance void?

sl_convertible•about 2 hours ago

s/subject/object - there's no objective standard for hatred. I find it funny that Trump was pretty much universally liked until he ran for President as a Republican. If you go back to his interviews in the 80's and 90's, he's pretty much saying now what he said back then, so what changed?

NDlurker•about 1 hour ago

He was so universally liked that the bad guy in Back to the Future was inspired by him.

archonis•19 minutes ago

How did you come to that conclusion?

Were you alive and in the Northeast US during the 80s and 90s, if not, what are your sources?

Cipater•39 minutes ago

That man has never been universally liked, surely you don't actually think this is true?

sbseitz•about 1 hour ago

None of this is true.

postflopclarity•about 1 hour ago

if prolific child sex abuse and trafficking doesn't meet the bar for objective standard for hatred I don't know what on earth will.

> Trump was pretty much universally liked

no he wasn't ???? you're just making shit up

The Humbling of the Once Almighty Dollar

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