John Maynard Keynes famously wrote in The Economic Consequences of the Peace (1919):
“There is no subtler, no surer means of overturning the existing basis of Society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction and does it in a manner which not one man in a million is able to diagnose.”
The United States mastered this art of destruction by weaponizing the dollar and using economic sanctions and financial policies to cause the currencies of targeted countries to collapse. On Jan. 19, we published “The US–Israel Hybrid War Against Iran,” describing how the United States and Israel are waging hybrid wars on Venezuela and Iran through a coordinated strategy of economic sanctions, financial coercion, cyber operations, political subversion, and information warfare.
This hybrid war has been designed to break the currencies of Iran and Venezuela in order to provoke internal unrest and ultimately regime change.
On Jan. 20, just one day after our article, U.S. Treasury Secretary Scott Bessent publicly confirmed, without qualification, apology, or ambiguity, that our description is indeed the official U.S. policy.
“It is high time that the world’s nations face up to America’s rogue economic behavior… This lawlessness is illegal, reckless, harmful, destabilizing, and ultimately ineffective in achieving America’s own goals, much less global objectives.”
In an interview at Davos, Secretary Bessent explained in detail how U.S. Treasury sanctions were deliberately designed to drive Iran’s currency to collapse, cripple its banking system, and drive Iran’s population into the streets. This is the “maximum pressure” campaign to deny Iran access to international finance, trade, and payment systems.
Bessent explained:
“President Trump ordered Treasury and our OFAC division, Office of Foreign Asset Control, to put maximum pressure on Iran. And it’s worked, because in December, their economy collapsed. We saw a major bank go under; the central bank has started to print money. There is dollar shortage. They are not able to get imports, and this is why the people took to the street.”
This is the explicit causal chain whereby U.S. sanctions caused the currency to collapse and the banking system to fail.
Hellbound and Down 