Redrawing Global Power: The Rise of BRICS and the Dollar Dilemma - Part 02

China and other countries like Iran, Saudi Arabia, Russia, Brazil, and India have been forming partnerships to challenge the United States' dominance in the world. Since the end of World War II, the US has been the preeminent global leader, but this position has weakened in recent years due to various factors like energy dependence, a shift in economic and cultural standing, and a perceived bully attitude. The Biden administration is seen as either oblivious or dishonest about this decline, as countries in the BRICS coalition and beyond consider forming a powerhouse against the US and its Western allies. These countries are seeking an alternative to relying on the United States' economy and military, and one way they could challenge the US is by undermining the US dollar as the world's reserve currency. China has been expanding its influence through infrastructure deals, and its digital yuan could help decouple the dollar from its reserve status. However, China's ultimate goal may not be to completely eliminate the US but to coexist with it, feeding off its research and technological advances. Jerome Powell, the Federal Reserve chairman, mentioned that there is room for two reserve currencies, suggesting the US may have lost its dominant position in this arena. The weakening of the dollar could lead to governments withdrawing cash from American banks and a decline in the value of US Treasuries, which could hurt banks' assets. China's influence on OPEC's recent oil production cuts has increased inflation and put pressure on the US economy. Strategically, it seems that China has played its cards well, even with past administrations and the current one, as it seeks to challenge the US's global dominance.