The Rising U.S. Influence on Global Transport Corridors

Status Quo

The dominance of the U.S. dollar as the world's reserve currency is no longer guaranteed. While the United States retains the most formidable military force globally, its structure has grown fragmented, and it has not engaged independently in a major conflict for years. Although it remains a critical deterrent alongside its allies, the actual outcomes of potential future conflicts are uncertain.

The emergence of BRICS as an economic coalition poses a significant challenge to the United States' longstanding control over the global financial system. While U.S. sanctions remain a powerful tool, their impact has diminished compared to decades past. Meanwhile, the U.S. national debt has reached unprecedented levels and continues to climb, raising concerns about potential measures such as temporarily suspending interest payments - a move currently mitigated by relentless money printing.

Transport Corridors

In this context, the United States' increasing focus on controlling the world’s transport corridors is a predictable strategy. Its "security role" in the South China Sea has gained prominence, aiming not only to secure strategic waterways but also to counterbalance China's rise as a global economic superpower. Similarly, the Baltic Sea has seen heightened U.S. activity through NATO, particularly following the 2022 Nord Stream gas pipeline explosion and subsequent incidents involving underwater infrastructure. These actions hint at broader intentions to contain Russia as well.

President-elect Trump’s remarks about regaining control of the Panama Canal align with the trend. Likewise, the suggestion of "purchasing" Greenland underscores the United States' interest in securing future Arctic transport routes. Could we soon see tensions escalate around other critical chokepoints like the Strait of Hormuz, Gibraltar, or the Suez Canal? Such developments would hardly be surprising.

Way Forward

The world is witnessing the painful evolution of a global hegemon struggling to adapt to seismic shifts in the international order. This transition is challenging not only for the United States but for the entire world. With U.S. debt at record levels and endless money printing an unsustainable solution, the future of its economic dominance is far from assured.

The phrase "In God We Trust" etched onto U.S. currency carries historical and symbolic significance. First appearing on coins during the Civil War and later adopted as the official motto of the United States in 1956, the meaning of "In God We Trust" denotes that the political and economic prosperity of the nation is in God's hands. However, this idea has faced scrutiny over time, particularly as trust in the dollar’s stability continues to erode.

The global financial system has long been tied to the U.S. dollar, but waning confidence in the currency’s future is increasingly evident. Could the United States Strategy of leveraging transport corridors and securing strategic waterways restore faith in its economic leadership? Only time will tell.