Dedollarisation and sanctions - Who is getting the upper hand?

 Now the West is admitting that de-dollarisation is not just a harmless little mosquito biting a dinosaur, and moving so slowly, so much so that the USA can just ignore it as they would like to believe. Perhaps the USA is just pretending to ignore the situation in order not to appear openly nervous, paranoid and on tenterhooks. Good for BRICS, I would say.

Arrogance could lead to trying to close the stable doors after the horses have bolted. The USA over the last four decades, categorically and arrogantly considered Chinese as still mere cooks and laundrymen, and incapable of posing a economic threat to its global dominance. The USA is now fighting tooth and nail to keep China down.

J P Morgan is now flagging the warning that de-dollarisation is not as harmless to the US$ as the USA would like to imagine, and moving much faster than what the USA anticipated. Of course, it still will take time, but the writing is on the wall. Reversing the momentum is not a viable option with countries vying to join BRICS, while fighting against it is futile and is too late for that. It is no longer just taking down a single small hapless country like Iraq or Libya.

The only option for the USA is to prevent China's influence in the BRICS from rising further by using the only thing left that they can do. China is the only pure competitor in BRICS that can do the most damage to the US$. And for that the USA is rallying allies to help it to take down China by hyping up imaginery threats, instilling fear in non allies and building up their military capablities like Papua New Guinea and the Pacific Islands.

The most outstanding manner of attacking China lies in forming alliances like the Chips 4 Alliance, which is indirectly killing two birds with one stone, which is countering China while at the same time killing off the Chip industries of South Korea, Taiwan and Japan and also the Netherlands. What will eventually be left of the alliance is that the USA will reap all of the benefits, making sure that the other member's of the alliance fall to pieces and giving the USA total control of global chip making. Only China will be left to pose a threat in Chip manufacturing. However, China is posing more than that of a chip making competitor. China is the biggest market for chip manufacturers, without which any expansion of chip manufacturing by the USA makers is an exercise in futility. That is why Intel is not going ahead with its expansion in the USA itself.

Anonymous