Summary
The dollar's dominance in global transactions, which has been a huge benefit for America, will be hard to displace, but INSTEX is a warning sign, the canary in the coal mine. America's closest allies are working hard to chip away at a crucial underpinning of U.S. global power.
Why? It's simple: the Trump administration's abuse of this power. The United States sits atop the world for now, but there are forces eroding that lofty status.
When the Trump administration unilaterally reneged on the pact last year -- even though Iran had abided by it -- the U.S. reimposed sanctions, using its dollar power to prevent other countries from doing business with Iran (since most international transactions use the dollar for convenience).
The United States has legitimate complaints about China's trade practices.
America still occupies a unique position in the world.
By abusing its power to do so, it is putting at risk the structure of the international system in which American power is so deeply embedded.
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