The Lawfare Podcast Lawfare Archive: Weaponizing the Dollar with Saleha Mohsin
Apr 5, 2025
Saleha Mohsin, Bloomberg reporter and author of "Paper Soldiers," discusses the dollar's evolution into a weapon of U.S. foreign policy since WWII. She highlights the ramifications of economic sanctions and the ongoing geopolitical shifts that affect global power dynamics. Mohsin explores the complexities of a strong dollar on the U.S. economy, its contrast with China’s long-term strategies, and how the weaponization of currency impacts American democracy and international economic relations.
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Dollar's Rise to Power
- Post-WWII, the US dollar became the world's reserve currency due to America's strong economic position.
- The Bretton Woods agreement initially tied the dollar to gold to foster global economic integration and prevent wars.
Nixon's Gold Standard Shift
- Nixon's decision to abandon the gold standard shifted the dollar's value to US economic performance and expectations.
- This move aimed to control inflation and maintain economic credibility.
Faith in Democracy
- Maintaining faith in democracy is crucial for the dollar's power, as its strength is tied to the US economy and democratic principles.
- Factors like rule of law, independent agencies, and a free market contribute to this faith.
