ChinaTalk Chokepoints: American Power in the Age of Economic Warfare
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Feb 26, 2025 Eddie Fishman, a former civil servant at the State Department and adjunct professor at Columbia, discusses his book on U.S. sanctions policy. He explores whether sanctions truly work, providing historical insights from cases like Iran and Russia. The conversation highlights how the U.S. dollar evolved into a pivotal economic tool through deals with Saudi Arabia. Fishman also critiques the challenges in current economic warfare strategies against China, shedding light on the complexities of governance and the role of key policymakers in shaping these strategies.
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Modern Chokepoints
- Eddie Fishman's book "Chokepoints" opens with the Bosphorus Strait, a historical maritime chokepoint.
- In 2022, the G7 oil price cap caused a tanker traffic jam there, demonstrating the U.S.'s financial power.
Sanctions' Evolution
- In the mid-2000s, sanctions were largely viewed as ineffective, epitomized by George W. Bush's comment about Iran.
- Stuart Levey, a civil servant, recognized the untapped potential of the U.S. dollar's global role.
Petrodollar Weaponization
- The U.S. dollar's dominance wasn't initially intended for financial weaponization. Nixon's 1971 decision to decouple the dollar from gold changed its global role.
- Treasury Secretary Bill Simon's deal with Saudi Arabia linked oil pricing to the dollar, creating a crucial chokepoint.
