The war in Ukraine has proven to be a catalyst, pushing the world towards a new, multipolar order, that threatens to change everything from global dominance of the US dollar, to supply chains and international alliances.
Sanctions against Russia are leading it and its allies to create alternative payment and financial systems, to avoid using the US dollar.
With VISA and Mastercard pulling out, Chinas UnionPay has linked up with Russias MIR payment system. Caracas and Tehran are in talks to link their payments systems to MIR, further enhancing economic ties between the sanctioned countries, and leading to the development of alternative payment systems outside US control.
The US decision to sanction Russian energy imports has led to an increase in global oil and gas prices, adding to the already precarious fuel crisis during the months that preceded the Ukraine war.
The supermarket chain Aldi has raised prices in Germany, with Biden warning of food shortages. In a bid to control oil prices, the US has sought to wrap up talks in Vienna, paving the way for Iranian oil to enter the global market and help alleviate concerns regarding supply.
Simultaneously, the US has sent a delegation to Caracas in a bid to get Venezuelan oil back on the market. Saudi Arabia has refused to increase oil production at the request of the US, and is considering pricing oil sales to China in Yuan, in what could potentially chip away at the power of the petrodollar.
Russia has demanded unfriendly nations pay for gas in rubles, while selling oil to India and coal to China in rupees-rubles. This has helped shore up the value of the ruble, which has is back to near pre-war levels, at 80 rubles to the dollar.
While the United States and European Union seek to give the impression of a united front against Russia, most countries have refused to sanction the Kremlin, maintaining diplomatic and economic ties. The two most populous countries on earth, China and India, also emerging economies and nuclear powers, refused to condemn Russia at the United Nations.
Is the international community really united on Russia? What do energy sales in denominations other than the greenback, and the development of alternative financial systems mean for the dominance of the US dollar as the worlds global reserve currency? All these questions and more answered right here in this comprehensive analysis of the current global realignment. Guest: Scott Ritter, Fmr Marine Corps Intelligence Officer & UN Weapons Inspector.