For many years, the United States stood at the center of the global system. Its influence did not come only from military power, but from a strong economy, a dominant dollar, and control over global energy markets. In simple terms, the dollar became the currency the world used to pay its energy bill.
Today, this system is under pressure. Rising US debt, growing economic competition with China, and global uncertainty are changing the rules. The rise of gold prices and growing doubts about the dollar are not random trends. They are signals that economics is no longer strengthening power automatically—it is starting to limit it.
The Economic Conflict Between the US and China
The relationship between the United States and China now looks less like cooperation and more like competition. Trade disputes, technology bans, supply chain disruptions, and competition over energy have become common.
This relationship can be compared to two business partners who no longer trust each other but cannot easily separate. Each side is trying to reduce risk without collapsing the entire system. China, for example, is trading more in local currencies, buying more gold, and securing energy deals outside the dollar system. These moves do not end dollar dominance, but they show growing caution.
For the United States, the challenge is clear. The dollar has allowed Washington to borrow heavily, run large deficits, and still remain influential. As competition grows, keeping this privilege becomes harder—and more expensive.
A Fragile Global Economy and the Rise of Gold
The global economy today feels unstable. Inflation is high, interest rates are rising, and government debt—especially in the United States—has reached record levels. This situation makes investors nervous.
In times like these, people turn to gold. Gold works like emergency savings kept at home during uncertain times. People do not buy gold because they expect the system to collapse tomorrow, but because they want protection if things go wrong.
Rising gold prices are a warning sign. They reflect fear of debt, inflation, financial shocks, and unstable energy prices. Gold does not replace the dollar—it simply shows that confidence is no longer complete.
The Dollar and Energy Security
Energy markets are deeply connected to the dollar. Oil and gas are priced mostly in dollars, which keeps global demand for the currency strong. As long as the dollar is stable, energy prices are more predictable.
Think of it like paying household bills. When your income is stable, you know what you can afford. When income becomes uncertain, every bill becomes stressful. The same applies to countries buying energy. When the dollar weakens or becomes unpredictable, energy prices rise, inflation increases, and economic planning becomes harder—especially for poorer, energy-importing countries.
That is why discussions about using other currencies in energy trade matter, even if changes are still limited. Small shifts can shake confidence and affect markets.
Economic Pressure and US Foreign Policy
US foreign policy has always depended on economic strength. Military bases, interventions, and global commitments all require money. But high debt is forcing Washington to think more carefully.
Military power can be compared to owning a luxury car. It offers freedom and prestige, but fuel and maintenance are expensive. When money becomes tight, you start asking whether every trip is really necessary.
As a result, the United States increasingly relies on economic tools like sanctions instead of direct military action. Sanctions are cheaper and politically easier. This shift shows how economic pressure is changing the way power is used.
Energy Security in Uncertain Times
Today, energy security is not only about having enough oil or gas. It depends on trust—in markets, currencies, and political stability. When trust weakens, the entire system becomes fragile.
For the United States, protecting energy security now means protecting its economic foundations. Managing debt, controlling spending, and keeping confidence in the dollar are just as important as military strength. Without a strong economic base, global influence slowly erodes.
Why It Matters
Rising US debt, growing doubts about the dollar, and the surge in gold prices are not just financial trends for experts to debate. They affect energy prices, inflation, and economic stability around the world. When the currency that anchors global energy markets becomes less predictable, uncertainty spreads quickly—especially to countries that rely heavily on imported oil and gas.
For the United States, the message is clear. Global influence today depends as much on economic discipline as it does on military strength. Managing debt, protecting confidence in the dollar, and ensuring energy security are no longer technical issues—they are strategic ones. In a world shaped by economic pressure, power begins at home, and stability has become the most valuable asset of all.
*Mohammad Tarhini
Graduate Researcher in Political Science
M.A. in International Relations
Energy Security & Quality Management Specialist*
Source: Al-Manar English Website