The confrontations will only hasten the demise of the US dollar.
1 – The assassination of Qassem Suleimani reflects long-time US policy.
2 – The greatest threat to US hegemony is the dedollarization trend.
3 – This US-Iran confrontation will not die down, and is sure to escalate.
The prime reason for Trump’s January 3 assassination of Iraqi general Qassem Suleimani was to support the US dollar, by asserting US control of the region and its oil. So said professor Michael Hudson (who has been called the “world’s best economist” by Paul Craig Roberts).
The US operates over 800 military bases around the world. Maintaining them costs an insane amount of money, and the only way the US can continue to do so is through its “exorbitant privilege” of having the world’s reserve currency. If the dollar were to lose its status as the reserve currency, the US position would be weakened, both militarily and diplomatically.
Russia and China are looking to bypass the US dollar. Iraq and Syria attempted to do so, and were soon punished for their “misbehavior.” And since Iran was also threatening to do so, the US felt it had to respond to the threat.
Given the aforementioned reason behind the assassination, it’s inevitable that the situation will escalate. Further attacks or even threats of attack against Iran could lead to Iran’s launching of a broad assault on Saudi Arabian oil fields. That would hasten the end of the US dollar.
The current tense situation will lead to more fear-mongering and much more warmongering.
According to Dr Hudson, what Trump did by assassinating Suleimani was essentially “draw a line in the sand.” That challenge to Iran is certain to result in greater tensions and more confrontations.
An end to the dollar’s status as reserve currency would also result in the loss of US military dominance, as Dr Hudson stated. Furthermore, the country would also suffer economically, and the effects would be drastic.
The inevitable outcome would be a weakened nation with a collapsing economy and a failed currency.
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