Top Traders Unplugged

IL35: The New Age of Economic Warfare: Are We Ready? ft. Edward Fishman

Feb 26, 2025

Dive into the modern landscape of economic warfare with insights from expert Edward Fishman. Discover how the U.S. utilizes financial dominance to impose sanctions on nations like Iran and Russia. Explore the innovative use of escrow accounts and the challenges of enforcing sanctions in today's complex market. The podcast also highlights the evolving bifurcation of the oil market and its geopolitical implications. Finally, consider the future of global economic relations in a world reshaped by strategic partnerships and resource competition.

01:01:05

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Quick takeaways

Economic warfare has shifted from military strategies to using economic tools like sanctions to exert international influence and achieve policy goals.

The concept of 'choke points' highlights the significance of key assets like the U.S. dollar and advanced technologies in global economic operations.

Historical examples illustrate that while sanctions can be effective, they also risk escalating conflicts and require careful consideration by policymakers.

Deep dives

The Evolution of Economic Warfare

Economic warfare has evolved significantly over the past couple of decades, moving from traditional military strategies to utilizing economic tools like sanctions and export controls. This shift has been particularly evident in the United States' approach to countries such as Iran and Russia, where the government has sought to leverage its economic power to achieve foreign policy objectives. One notable example highlighted is the role of sanctions during the Iran nuclear deal negotiations, where the U.S. utilized various economic strategies to pressure Iran while avoiding military conflict. This transition underscores a broader recognition of the potential for economic means to influence global political dynamics without the immediate costs associated with military engagement.

Bifurcated Markets

01:45

Intro

4min

Economic Warfare and Sanctions: A Career Journey

18min

Economic Sanctions and Global Trade Dynamics

27min

Navigating U.S. Sanctions and the Oil Price Cap Against Russia

5min

The Bifurcation of the Oil Market and Its Global Implications

2min

The Future of Global Economic Warfare: Blocs and Vulnerabilities

4min

Navigating the Future of Economic Security

2min

Our guest on this episode is Edward Fishman, a world expert on the modern art of economic warfare. Edward is author of the new book Chokepoints: American Power In The Age of Economic Warfare. He currently teaches at Columbia University and prior to that advised the US Secretary of State, Joints Chiefs of Staff and Treasury Department on the deployment of economic sanctions. We discuss the details of how the US uses its dominant position in the world’s financial markets and technology software to pressure countries like Iran, Russia and China. Most importantly this episode explains why these tools used to influence these chokepoints are permanent and are starting to form the contours of the new global economy that will persist for the coming decades.

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Episode TimeStamps:

02:14 - Introduction to Edward Fishman

08:24 - The failures of economic warfare

14:04 - What Stuart Levy can teach us about economic

19:26 - Who even want to work at banks nowadays?

22:10 - The most successful sanction in modern times

27:02 - The dangers of sanctions, export controls and tarifs

32:56 - What is a denial order and why is it such a powerful tool?

37:52 - What is the entity list and what is it used for?

38:55 - Technology chokepoints and the challenges they pose

46:08 - The secret to the American success

48:29 - Is the price cap on Russian oil actually working as intended?

53:31 - The oil market is changing

55:17 - Where is the global economy heading?

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