Sanctions and petrodollar weaponization are backfiring on the US
Tom KirkmanIndependent Project Manager
Excessive western sanctions and repeatedly using the petrodollar as a political weapon is backfiring *badly* on the U.S. government.
The U.S. can’t see this yet, but that will change, most likely this year.
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“… Russia and Iran are now trading oil (and other things) in their own national currencies, not the petrodollar.
This is the epicenter of a process initially triggered by the BRICS economic alliance and is now taking place in real time while the proverbial WEST pretends it is not happening.
Now, it might sound esoteric, as if it is a disconnected or academic issue that doesn’t have real substantive ramifications, but that’s not true.
I can literally see how global trade is now cost-shifting as the dollar starts to weaken (become less used) as a trade currency.
Again, like our domestic social issues, this de-dollarization process is “slowly at first,” but eventually this is going to come all at once.
As USA consumers we cannot see it yet, because we are inside an economic system that is entirely dependent on dollars.
However, as the devaluation of the dollar continues slowly to happen, outside our dollar-based economy, the cost of goods, products and stuff in the ordinary life of people within the GREY ZONE is now stunningly less.
It’s not showing up in currency markets (dollar -vs- fill_in_blank), because the currency trades are not part of the trade/cost dynamic outside the YELLOW ZONE.
Go into the grey zone and compare the price of “product X” to what you would pay in the United States for “product X”, and you will see the difference in the end consumer price is starting to widen faster.
Identical goods in the USA cost much more than goods outside the “west.”
As the de-dollarization continues (mostly driven by the lessening of oil sold using the petrodollar), the disparity in price will get even more stark.
As a result of this dynamic, wages in the USA (or the “west”) must necessarily rise faster; however, that’s only part of the issue. …”
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