Arab money held hostage by Americans. China just keeps dumping the dollar

It is precisely the USA having control of the wealth of the Middle Eastern leaders that makes it practically impotent for them to create any fruitful kind of alliance against Israel. The Arabs took the bait and fell into a trap decades ago. It is too little too late for them to disengage themselves from the trap.

Why would those Arab leaders risk having their wealth seized by the West like the case of Russia, by going against the USA and Israel? The seizure of Russian assets is already what the Chinese would consider killing the chicken to teach the monkeys.

China is acutely aware of that risk as well, which is why China is selling off USA assets and creating the BRI. Moreover, China still has some leverage and deterrence against the USA in that USA assets in China are no small potato. Instead of buying more USA assets with the trade surpluses as was done in the past, China is investing those surpluses in the BRI, extending loans to poor countries to build infrastructures. Those are safe investments as the infrastructures cannot be seized as they belong to other countries and are moreover not inside the USA. The other important point to note was while the loans were made in US$, the repayment of the loan was to be in Yuan. Wasn't that a masterstroke by China recycling the US$ into Yuan? Was that why there is so much demonization of the BRI, with all the hogwash about debt traps and even sabotaging being employed?

These steps by China under the radar are all de-dollarization moves that the USA may just underestimate, but the consequences are profound. The USA can underestimate the effect of moves taking place under the BRI and BRICS at its own peril, thinking that the US$ hegemony is still untouchable. Let the enemy continue to sleep, while the earth is shifting under its feet.


Anonymous