Of The Fall of The US Dollar Empire

                    As I've mentioned in previous blogs, America has used its military to ensure the dominance of the U.S dollar and has used sanctions against countries that threaten its interest.  However, in recent years there have been several to the U.S dollars dominance and this time the U.S military will not be used for reasons I will mention later.  In 2015 when the Ukraine was in a civil war between pro Russian sepratist in the east and pro Europeans in the west Russia was falsely accused of supporting pro Russian seperatist.  Also, when Crimea held a referendum and voted to join Russia, this referendum was called a farce by both then President Obama and European technocrats.  The U.S used these events as an excuse to impose sanctions on Russia.  These sanctions have resulted in Russia using Japan's financial clearing system to conduct finacial transactions.  Also, trade between Russia and China has been reaching record highs in recent years.  It is important to note that Russia and China have been selling off U.S treasury bonds to decrease their U.S dollar holdings.  Indeed, Russia and China are far too powerful for the U.S military to punish them for challenging the dominance of the U.S dollar. 
                Trump scraped a deal that Obama negotiated with Iran that would have gradually removed the sanctions on the Middle Eastern country given progress on de-nuclearization.  Europe however has remained a party to this deal despite the U.S pulling out.  European companies cannot do business with Iran without risking sanctions from the U.S.  As a result, Europe is working on its own financial clearing system independent of America's financial clearing system, called SWIFT.  This act would further challenge the dominance of the U.S dollar.  It is important to note that countries such as India are still buying oil from Iran in Indian Rupee's despite the U.S imposed sanctions.  Traditionally, oil has been traded using the U.S dollar.  The U.S has yet to impose sanctions on countries buying oil from Iran.  It is likely that the U.S will refrain from doing this.  Its clear that in the next few decades the U.S dollar will continue to lose dominance as currencies such as the Indian Rupee and Chinese Yen gain ground.  It is important to note that historically the reserve currency has been the country that is the greatest sea power.  This was the case in the late middle ages when Venice then Portugal then the Netherlands then Spain then Great Britain then finally after World War 2 the U.S dollar become the global reserve currency.  However, the days of the largest sea power being the reserve currency is coming to an end.  In the coming decades as space technology becomes more adavance the biggest space power will be the reserve currency.  Time will tell which country achieves this feat.