The Twilight of America’s Financial Empire

Washington’s Economic Bullying Will Erode Its Power

T. J. Kirckpatrick / The New York Times / Redux

When Iraqi lawmakers voted to expel U.S. forces from the country earlier this month, the Trump administration’s response was swift and forceful: it refused to withdraw and, for good measure, threatened financial retaliation, saying it would freeze Iraq’s accounts at the U.S. Federal Reserve. The threat seems to have been effective. Although Iraqi officials still seethe over a U.S. drone strike that killed a top Iranian commander in Baghdad on January 3, Prime Minister Adel Abdul-Mahdi has said that his caretaker government lacks the authority to push for a U.S. withdrawal, and American troops have resumed …