Trump's Risking Financial Disaster for America

[DonViejo]

How the president's Iran policies could unravel the U.S. position as the world's banker.

By JARRETT BLANC January 13, 2019

President Donald Trump’s Iran policy has been reckless as regards Iran—it all but invites Tehran to return to an unconstrained nuclear program, and it reduces U.S. credibility to bargain on other contentious issues. But it has been far more reckless on the far more consequential matter of America’s relationships with allies and partners, and especially the U.S.’s central role in the world financial system. Iran can be a problem, but it is not worth gambling the economic and political benefits the U.S. receives as the world’s banker.

The administration now has an opportunity—maybe its best remaining opportunity—to minimize the risk to U.S. financial centrality.

The European Union is inching closer to establishing a new financial mechanism to facilitate trade with Iran despite tightening U.S. sanctions. The EU is likely to make announcements this month, tied to the third anniversary of the nuclear deal’s full implementation in January 2016.

This is a severe risk for U.S. financial dominance over the mid- to long-term. It opens up the possibility of Europe developing a banking infrastructure that does not run through New York, threatening the tremendous influence the U.S. enjoys as the global backbone for even simple banking operations If the Trump administration perceives and responds to this danger, it can reduce the risk with minimal changes to its “maximum pressure” approach to Iran.

EU foreign policy chief Federica Mogherini’s announcement of this financial mechanism, called the Special Purpose Vehicle (SPV), was the most important thing to emerge from the U.N. General Assembly in September—though it was easy to miss in the circus atmosphere of word leaders laughing at President Trump’s claim to have “accomplished more than almost any administration in the history of our country” or Trump’s dramatic isolation in his failed effort to persuade the Security Council to join his pressure campaign against Iran.

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https://www.politico.com/magazine/story/2019/01/13/trump-iran-foreign-policy-financial-disaster-223971

[AJT]

1. I wonder what would happen to the Iran agreement if we started a

war with Iran(something Bolton has been dreaming about for a long time)? Would the other countries in the accord withdraw?

[duforsure]

2. Mobster trump is just doing what mobsters do now

By threats and taking others hostage or else. He's been doing this to other countries now too, pay for protection or I'll hurt or attack you. His mobster tactics selling policies , attacking the free press who exposes the truth, and his manipulating department heads to only those that'll serve him and only him is another clear indication we're under Mob rule as long as he's in the White House.