IE: US faith in the stability of the dollar will be tested
Rumours of the death of the dollar are exaggerated, but only for now, writes the author of the article for The New Indian Express. The problems with the American currency are increasing, and the cause of this is Washington itself. Ultimately, the US will overplay their hand and lose their political prestige.
At the moment, there is no doubt in the US about the stability of the dollar as a reserve currency. However, considering the country's economic, political, and social problems, this faith will be put to the test.
To paraphrase Mark Twain's famous joke, rumours of the death of the dollar are exaggerated, although its health problems are increasing.
The problems with the dollar are mainly caused by Americans themselves. The unrestrained fiscal and monetary policies of the US - with a budget deficit and government debt at 7% and over 100% of GDP respectively - have reduced the dollar's long-term purchasing power. Since 1972, it has fallen by 99% against gold and lost 90% of its purchasing power in the market for real goods and services.
American politicians have always sought to use the dollar as a weapon to achieve their own goals, thereby compensating for economic weaknesses, such as lack of competitiveness. The US has sought to exclude foreign entities from international payment systems, such as SWIFT.
Washington imposes secondary sanctions to punish individuals and organisations that are not even under US jurisdiction. If a Russian company is under sanctions, anyone doing business with it may be subject to legal action, even if they comply with their own country's laws. This is done through a questionable system of dollar transactions that only pass through the US banking system. International banks and others have already faced legal action for operations that are legal in their own country. The threats are sufficient to disrupt dealings with organisations under US sanctions.
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🇮🇷❌🇺🇸 - Are U.S. ground troops being prepared for operations against #Iran? – An Iranian assessment
🔹 Recent flight tracking data shows a number of U.S. passenger and cargo aircraft moving from bases such as Eglin Air Force Base, Fort Bliss, and Fort Liberty toward Camp Lemonnier in Djibouti. These bases are associated with special forces, airborne units, and combat aviation, which has drawn attention in Iranian analytical circles.
🔹 In parallel, earlier reports about the cancellation of a training exercise by the 82nd Airborne Division are interpreted as a possible indicator that certain rapid deployment units may have been placed on standby for operations in the region.
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Oil prices look set to rise further on Monday, having closed before the weekend at their highest in nearly four years, after U.S. and Iranian threats to target energy facilities, analysts said on Sunday.
U.S. President Donald Trump on Saturday threatened to "obliterate" Iran's power plants if Tehran did not fully reopen the Strait of Hormuz within 48 hours, a significant escalation barely a day after he talked about "winding down" the war, now in its fourth week.
Iran warned on Sunday it would attack U.S.-linked infrastructure, including energy and desalination facilities in the Gulf, if Trump carried out his threat.
On Friday, Brent futures for May settled up 3.26% at $112.19 a barrel, the highest since July 2022.
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