Diminishing Dollar Hegemony: What Wars and Sanctions Failed to Accomplish, COVID-19 Has

Abstract

The United States has turned into an anarchic Hobbesian in part triggered by; weakening dollar’s natural pull as the main reserve currency; China’s massive foreign reserves; fast rise of the renminbi; the failure attempts to dismantle gold and its readiness to reclaim a monetary role at the heart of the next monetary system. President Trump’s selfish “America First” policy and its spinoff actions have debilitated the economies of Iran, Venezuela, China, Russia, Turkey, the Middle East as a whole and a host of other countries in Europe. Coronavirus was the final blow to put the already fragile world economy into state of coma. The world’s nations would have been in a better state financially to fight coronavirus if the United States since 2016 has unjustifiably pushed many economies off the cliff via instability-inflicting policies and engagements in video game like warfare, all of which were purposely strategized with the goal of maintaining American supremacy and preventing the dollar hegemony from further diminishing. Since the Fed creates infinite money through credit expansion, United States unlike any country can engage in more than one war simultaneously, but this time the unusual enemy coronavirus will not be defeated through an arsenal of weapons of mass destruction. The GFC of 2008, originated in the U.S., was a near financial meltdown; with coronavirus, thousands of deaths and the resultant fear may cause many economies including that of the U.S. to collapse.

Keywords: Dollar Hegemony; Sanction Power; Foreign Policy; Coronavirus; Recession

JEL Classification: C52, C53, E37, E42, E44, E51, E59, G21, G28, G32