US hegemony retreats in a backdrop of geopolitical turmoil was one of our top forecasts for 2022.

Hegemony is defined as leadership or dominance by a state or social group over others.

Post WW1 saw the rise of the US as a superpower. The Anglo American defeat of fascist Europe in WW2 cemented US hegemony.

The US Marshall Plan, formally European Recovery Program, April 1948-1951, amounted to $15billion of USD reconstruction loans to rebuild Europe, in the wake of WW2, which had decimated German infrastructure, and industry left the economy in ruins. The UK, although emerging victorious, was financially depleted and facing near bankruptcy.

US Hegemony Retreats
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Post WW1 saw the rise of the US as a superpower

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The historic photo of Churchill, Roosevelt, and Stalin marked the start of the post-WW2 world order, or a multi-polar world. The West, spearheaded by the Anglo Americans and its satellites, the UK Commonwealth, and western Europe, including northern and southern European countries. Japan and South Korea. 

The East was the Union Of Soviet Socialist Republics (USSR) and its 15 other countries. This period was also defined as the Cold War, 1945-1990. 

Post WW2 1950s was a period of US economic prosperity. US hegemony was in full swing, and the USD sat unchallenged on the throne. King dollars replaced GBP as the world’s reserve currency. The old Empire where the sun never set eventually did see the sunset on GBP as a reserve currency. Perhaps the Suez Canal crisis accelerated the demise of the GBP as a reserve currency. The UK retreat under US pressure with 

President Eisenhower threatened serious damage to the British financial system by selling the US government’s pound sterling bonds.

Post the Suez Canal crisis, the UK could no longer act unilaterally, and any significant geopolitical move it made had to be run through Uncle Sam first.

Post Suez canal

Post the Suez Canal crisis, the UK could no longer act unilaterally, and any significant geopolitical move it made had to be run through Uncle Sam first

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So a hegemonic power shapes geopolitics and writes the rules which ensure it remains on the throne. Hegemonic power can be soft and seductive in its culture, music, movies, and propaganda. But the hegemonic power also dominates through hard power, its military might. 

Seventy years after World War II and 62 years after the Korean War, there are still 174 US “base sites” in Germany, 113 in Japan, and 83 in South Korea.

The two rising power of the previous century Germany, and Japan were bombed by the US and its allies into oblivion and submitted 

Taiwan Is Part Of China” – Chinese Defense Minister

In the 21 century, US hegemony retreats, and the war hawks in Washington have itchy fingers

Ukraine’s Zelensky seems like the type of leader that Confessions Of An Economic Hit Man by John Perkins refers to in his book. So the former actor, a comedian with no political experience, with a current net worth of 3 billion USD in one of Europe’s poorest countries, surrenders Ukrainian nukes on the pretense of joining NATO. Russia invades Ukraine. Zelensky requests a no-fly zone, which NATO rejects for fears of a confrontation with Russia.

At that point Zelensky should have released where his allegiance should lie.

US hegemony retreats with NATO alliance knees wobbling over fears of a nuclear confrontation with Russia

The end game of bleeding a nuclear power dry in a war situation is a nuclear war. 

Putin’s Russia is undeterred by International law or the threat of nuclear war. 

So as US dominance wanes in Europe, US hegemony retreats in Asia, with the Chinese Defense Minister warning Pentagon that “Taiwan Is Part Of China.”

With US hegemony in retreat, what will dollar hegemony fightback look like?

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