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'We Currently Have No Container Ships,' Seattle Port Says

(www.newsweek.com)
232 points pseudolus | 1 comments | 10 May 25 15:49 UTC | HN request time: 0.333s | source
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hintymad ◴[11 May 25 00:57 UTC] No.43950327[source]▶
A funny thing is the US could easily sanction any country in the 90s because it controlled so much manufacturing. Nowadays we can’t even sanction Houthis since they can get everything from China. Judging by the port situation, soon China can sanction us, easily.
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alangibson ◴[11 May 25 16:35 UTC] No.43954936[source]▶
Sanctioning power comes from dollar primacy. When the whole world settles transactions in your currency then you have the power to switch off other countries foreign exchanges pretty easily.

The dollar has been in steady decline since the late 70's. As it's share of reserves drops, do goes the effectiveness of sanctions.

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hintymad ◴[12 May 25 17:18 UTC] No.43965356[source]▶
> Sanctioning power comes from dollar primacy

My worries is what sustains the dollar primacy. If the US can't make what's even essential for the nation, I'm curious how other nations will want our so-called services.

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1. alangibson ◴[12 May 25 18:19 UTC] No.43966013[source]▶
> My worries is what sustains the dollar primacy

Manufacturing was never part of the equation. It's somewhat ironically because of the trade deficit. Running a deficit blasts dollars out into the world. Countries put those dollars back in US banks and buy US treasuries as their reserves (hence the dollar as a reserve currency).

It's maybe the best economic deal any country has ever gotten, and the US is in the middle of blowing it all up.