Early Examples: Dollar Power and Financial Sanctions

“We are in the midst of a rupture, not a transition,” Prime Minister Mark Carney of Canada announced last week at the World Economic Forum in Davos, Switzerland.

It was one of the most significant foreign policy speeches in years, sending shockwaves through the international community. He was describing a dynamic that’s been building for decades — what the scholars Henry Farrell and Abraham Newman call “weaponized interdependence” — that has now reached a tipping point.

I asked Farrell on the show to explain this dynamic, why this is a “rupture” moment and how other countries are responding. He is an international-affairs professor at Johns Hopkins University, is an author of the book “Underground Empire: How America Weaponized the World Economy” and writes an excellent Substack, Programmable Mutter.

Note: This episode touches on the clashes over immigration enforcement in Minneapolis and the killing of Renee Good, but it was recorded on Friday, before the killing of Alex Pretti.

Mentioned:

“Davos 2026: Special address by Mark Carney, Prime Minister of Canada”

Underground Empire by Henry Farrell and Abraham Newman

“Programmable Mutter” by Henry Farrell

“The nature and sources of liberal international order” by Daniel Deudney and G. John Ikenberry

“The Enshittification of American Power” by Henry Farrell and Abraham L. Newman

“Too big to care” by Cory Doctorow

Weapons of the Weak by James C. Scott

Private Truths, Public Lies by Timur Kuran

“Further Back to the Future: Neo-Royalism, the Trump Administration, and the Emerging International System” by Stacie E. Goddard and Abraham Newman

“The Dynamics of Informational Cascades: The Monday Demonstrations in Leipzig, East Germany, 1989–91” by Susanne Lohmann

Book Recommendations:

Dollars and Dominion by Mary Bridges

Nonesuch by Francis Spufford

The Score by C. Thi Nguyen

Thoughts? Guest suggestions? Email us at ezrakleinshow@nytimes.com.

You can find transcripts (posted midday) and more episodes of “The Ezra Klein Show” at nytimes.com/ezra-klein-podcast, and you can find Ezra on Twitter @ezraklein. Book recommendations from all our guests are listed at https://www.nytimes.com/article/ezra-klein-show-book-recs.

This episode of “The Ezra Klein Show” was produced by Jack McCordick. Fact-checking by Michelle Harris, with Mary Marge Locker, Kate Sinclair Our senior engineer is Jeff Geld, with additional mixing by Aman Sahota and Isaac Jones. Our executive producer is Claire Gordon. The show’s production team also includes Marie Cascione, Annie Galvin, Rollin Hu, Kristin Lin, Emma Kehlbeck, Marina King and Jan Kobal. Original music by Pat McCusker and Carole Sabouraud. Audience strategy by Kristina Samulewski and Shannon Busta. The director of New York Times Opinion Audio is Annie-Rose Strasser.

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