The madness of the US getting involved in a fight with Iran seems boundless. Quite apart from a shooting war and all that that entails in terms of blood and treasure (cf. Vietnam, Iraq, Afghanistan) the less direct economic costs can also be vast. If one country tries to force sanctions on another it needs to be in a very strong economic position. The US had been in that position for almost the last century but is now rapidly losing it.
When this happens the countries that don’t support the sanctions, or who see an advantage in avoiding them, will do just that. When that happens the country initiating the sanctions loses out on a whole range of commercial opportunities. Often for a very long time.
This is what’s happening now. The unilateral and imperious imposition of sanctions has lead to an outbreak of new arrangements among powerful countries which will benefit Iran and have catastrophic impact on the US. The most significant in my view is the move by China to buy oil from the UAE using the renmimbi. The Gulf Arabs have broken rankes on the dollar. This on top of Chinese agreements with Russia, Japan and Iran to conduct their trade in their own currencies. Now India is apparently using gold to buy oil from Iran. Stuff the boycott. The US is powerless to do anything about it.
This is earth-shattering news for Americans – or should be. But you’d never guess it from its meagre coverage in the MSM. What it means is that the undermining of the dollar as the world’s reserve currency will undergo a step-change increase. And once such a retreat begins it can quickly become a rout. Impact on American standard of living? Catastrophic.
Yet the American establishment continues on its merry way, 100-0 votes in the Senate, cruising to disaster, oblivious. For what?