No one sanctions like America. Two or three dozen countries being destabilized with many thousands dying from lack of food, medicine and commerce makes no dent in Uncle Sam’s conscience.
But there is an increasingly self-destructive downside to U.S. sanctions besides the fact they simply don’t work to achieve US foreign policy goals while getting foreign innocents killed.
All those US sanctions now on steroids against Russia over Ukraine war are working to disincentive many important countries from paying for trade, especially energy resources, in the good ‘ol dollar. This will likely cause the current the 60% of world’s reserves held in dollars to begin heading south.
China, fearing US world dominance, has joined into alliance with Russia, buying their oil with Chinese yuan. India is considering doing same with rupees. Fair weather ally Saudi Arabia is also dumping the dollar in trade with China. That’s only 3 countries but over 35% of world population.
How will that effect the US economy? Let us count the ways.
- Costlier imports
- Higher government borrowing costs
- Higher personal borrowing costs
- Rising deficits
- Eventual reduction of essential services damaging the fragile US social safety net
- The US printing press of inflationary dollars goes silent
- Only military spending will be spared, rising endlessly toward an annual trillion dollars
By all means, let’s continue the upward expansion of sanctions against friend and foe alike. Then watch US world dominance based on our almighty dollar and almighty military, sink into the Davy Jones Locker of failed empires.
Walt Zlotow became involved in antiwar activities upon entering University of Chicago in 1963. He is current president of the West Suburban Peace Coalition based in the Chicago western suburbs. He blogs daily on antiwar and other issues at www.heartlandprogressive.blogspot.com.
