Paper Soliders Book Review

Dec 10, 2024

Image of Bitcoin versus the US Dollar

Paper Soldiers: How the Weaponization of the Dollar Changed the World Order

In Paper Soldiers: How the Weaponization of the Dollar Changed the World Order, Saleha Mohsin dives deep into the history and politics of the U.S. Dollar, uncovering its immense power and far-reaching consequences. The book examines the Treasury Department's role in shaping American policy, both domestically and internationally, through the dollar's influence. It’s a sobering look at how the world’s reserve currency has been used not just for economic growth but as a geopolitical tool—and how that strategy is evolving in an era of global uncertainty.

The Dual-Edged Sword of a Strong Dollar

For decades, U.S. policymakers championed the mantra, “A strong dollar is in America’s interest.” On the surface, this policy delivered exceptional prosperity, ensuring access to cheap foreign goods and fueling consumer-driven growth. However, Mohsin reveals a darker side: the hollowing out of America’s manufacturing sector as industries relocated overseas, chasing cost efficiencies in a dollar-dominated global market.

Abroad, the strong dollar became not just a symbol of economic stability but a weapon of war. Sanctions, financial blockades, and economic pressures became tools of diplomacy—or coercion—wielded through the dominance of the dollar. Mohsin masterfully connects these actions to their broader consequences, from economic crises in targeted nations to the unintended fallout of such policies in an interconnected world.

A Pro-Bitcoin Perspective

The weaponization of the U.S. Dollar highlights its centralized nature and the immense power held by those who control it. Bitcoin offers a stark contrast: neutral, censorship-resistant, and decentralized. Unlike the dollar, Bitcoin operates without a central authority and has a fixed supply, immune to the inflationary pressures of unlimited printing.

Where the dollar can be used to block transactions, freeze assets, or sanction entire nations, Bitcoin’s decentralized network makes such actions nearly impossible. This neutrality could provide a safeguard against the misuse of monetary power, fostering a financial system less vulnerable to politicization.

While Bitcoin cannot yet replace the dollar’s global dominance, it raises important questions: What would a world with decentralized money look like? Could such a system reduce economic coercion and provide individuals greater financial freedom?

Conclusion

Paper Soldiers is a compelling exploration of how the U.S. Dollar has shaped global dynamics, for better and worse. For Bitcoin enthusiasts and skeptics alike, it provides a fascinating backdrop to consider the future of money. As crises continue to test the limits of centralized financial systems, alternative frameworks like Bitcoin offer new possibilities—ones that demand our attention in this age of uncertainty.

Justin Levy