• 0 Posts
  • 8 Comments
Joined 19 days ago
cake
Cake day: August 6th, 2026

help-circle
  • I struggle to rationalize this for countries not already in armed conflict.

    Legally, practically, or morally?

    Practically, armed conflict is way more expensive, and it’s riskier. If you had two strategies for changing someone’s behavior: 1) Punch them until they agree to change, 2) Tell them they can’t borrow any more money from you until they agree to change… you would probably prefer number two because it’s less risky.

    Legally… we only have 80 years of precedent for the USD being the world’s reserve currency, amd 50 years of weaponizing that power with the IEEPA. Rules for armed conflicts, on the other hand, are ancient. We have a lot of examples for acts of war in armed conflicts, and we can quickly define them and recognize them. For defining and regulating financial “attacks”… we have basically nothing.

    Morally… you and I have different moral systems from the people in charge. People can rationalize some truly heinous shit.


  • We would need a LOT of new international guidelines for this.

    It’s not clear to me where we would draw the line, since there’s not really an enforceable difference between, “Allowing you to use our financial system is causing us harm, so you can’t do that anymore,” and “You can’t use our financial system until you <insert demands here>.”

    While a blockade is recognized as an act of war, an embargo is not. The US sanctions usually operate like a specific, services-based embargo, so there’s no interpretation of CURRENT international law rendering it an act of war. Again, we would need new guidelines to meet your goal.