Foreign media: The failure of the United States' coercive foreign policy and weaponization of the US dollar is heartbreaking! Website | Global | United States

China Daily Online, June 7 According to a report on the website of the European Modern Diplomacy magazine on the 6th, since the outbreak of the Russia-Ukraine conflict, the United States has taken unilateral sanctions against Russia, bringing new complexity to the global economy. Since the Trump administration, the United States has been pursuing a foreign policy based on sanctions. Now, the Biden administration relies on sanctions and bans to promote its so-called "American style democracy and human rights" on a global scale. However, from a geopolitical perspective, the Biden administration's reliance on "shaky democracy" to contain its perceived geopolitical opponents seems to be due to a decline in its economic and military strength.

The article points out that generally speaking, an understanding of American hegemony leads people to believe that the policies implemented by the United States are carefully designed and will have the greatest effect. But a careful study of the policy history of the United States reveals that it often fails to achieve its goals through coercive policies. Lindsay Orock, assistant professor of international political science at Boston College, found that during the Cold War, the United States had attempted 72 times to change foreign governments to benefit itself, with only 26 successful attempts. According to Oroc, although most of them have failed, these actions by the United States have had a devastating impact on countries.

For example, after the 9/11 attacks, the United States' Middle East policy had a catastrophic impact on the entire Middle East region, as its interference disrupted regional stability and ultimately intensified anti Western sentiment among the people of the region. In the long run, the coercive policies adopted by the United States towards countries such as Iran and Iraq will ultimately push these countries further away.

When it comes to the failure of the United States' mandatory foreign policy, the article states that the main reason for the limited effectiveness is the double standards in its policy objectives. Although the United States regards promoting "American style democracy and human rights" as its foreign policy, these must be prioritized after its national security or interests. When there is a conflict between the two, the United States can ignore these issues. Apart from double standards, US policies often fail to meet the needs of southern countries around the world. For example, when the global South is vigorously developing its economy and technology to improve living standards, they hope to further cooperate with the United States in these areas, especially in the World Trade Organization. But the priorities of the United States seem to be elsewhere.

The article points out that US policies are being influenced by a one size fits all mentality. The United States is promoting "American style democracy" to different regions and cultures, which may not be fully applicable. Its policies also overlook the breadth and diversity of democracy and governance, resulting in instability and lack of effectiveness. The US foreign policy is gradually weakening the potential of swing countries, undermining their potential role in great power competition, and undermining their traditions.

Screenshot of Bloomberg report

Meanwhile, according to Bloomberg, the world is brewing a wave of opposition to the hegemony of the US dollar. On April 1st local time, the Indian Ministry of Foreign Affairs issued a statement stating that India and Malaysia have agreed to settle trade in Indian rupees. Indian media stated that this decision is a decisive step for India towards de dollarization. On March 31st local time, at a meeting of ASEAN finance ministers and central bank governors, ASEAN member countries agreed to strengthen the use of local currencies in the region and reduce their reliance on current international currencies in cross-border trade and investment, in order to better respond to global crises.

The article points out that for many global leaders, their reasons for taking these measures are astonishingly similar. They said that the US dollar is being weaponized, used to advance US foreign policy priorities and punish those who oppose it. The Biden administration imposed sanctions on Russia, froze the country's foreign exchange reserves worth hundreds of billions of dollars, and attempted to drive the country out of the global banking system. For most countries in the world, this is a clear reminder of their own dependence on the US dollar, no matter how they view this conflict.

At the end of May, Brazilian President Lula stated at a press conference after the South American leaders' meeting that while we were still using gold as a pricing method, the United States had not obtained anyone's consent to use the US dollar as a pricing method. Currency is a part of a country's sovereignty. If our region has its own currency, it would be a good thing to use it for commercial transactions with other countries in the region.

The core position of the US dollar in the global payment system also enables the United States to have a unique impact on the economic destinies of other countries. The latest data from the Bank for International Settlements shows that approximately 88% of foreign exchange transactions worldwide, even those that do not involve the United States or US companies, are settled in US dollars. Due to the fact that banks handling cross-border US dollar flows have accounts with the Federal Reserve, they are easily subject to US sanctions.

"For decades, countries have been frustrated by the dominance of the US dollar," said Jonathan Wood, global head of risk control at a consulting firm. "In recent years, the United States has been more active and widespread in implementing sanctions, exacerbating this unease, while major emerging markets are also demanding a redistribution of global power."

"Undoubtedly, de dollarization is accelerating and will continue in the coming years," said Varatan, the head of economics and strategy at Mizuho Bank Limited in Singapore. "The United States has made a deliberate decision to use the US dollar to cause pain, which is likely to have long-term consequences."

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