US Dollar Dominance Collapsing Amid Petrodollar System Crisis

Prof Michael Hudson, a prominent economist and author, argues that the US dollar's grip on the global economy is weakening. The petrodollar system, which has dominated international trade since the 1970s, is collapsing due to military conflicts in oil-producing nations. These conflicts are causing Opec countries to prioritize domestic development over recycling their earnings into US financial markets.

The US has shifted towards a coercive 'modern tribute system' characterized by sanctions and asset seizures, which has led to the isolation of the American economy from the global majority. This system is unsustainable in the long term, as it relies on coercion rather than trade and investment to maintain its power.

Hudson warns that the combination of energy shortages and rigid financial policies could push the world towards a major depression. To avoid this outcome, he advocates for a new economic order that treats money as a public utility rather than a tool for private extraction.