Page 26 - Issue 71

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VOL.1 , ISSUE 71OL.1 , ISSUE 71 ELITE

Professor Hassan Ali explained that the dollar's
decline is due to lack of confidence and
economic factors like rising US debt, financial
instability, budget non-compliance, and its use
as a political tool. He warned that using
economic tools as political weapons weakens
their future utility.
He argued that the turning point for the dollar’s
credibility was its use in sanctions, which pushed
nations to explore digital currencies and
He then addressed four main tools of
alternatives like BRICS. As a result, global
American economic dominance:
dollar reserves dropped from 77% to 59%.
The dollar as a global reserve currency.
Despite this, the Chinese yuan remains marginal
SWIFT, society of worldwide interbank
in reserve holdings (2.5%) and will need at least
financial telecommunication.
20 years to match the dollar’s dominance.
Tariffs, used to protect U.S. interests and
He predicted that globalization is shifting
pressure rivals.
toward regionalism, and concluded by criticizing
Trade deals, employed as geopolitical and
Trump, saying he brought out the worst in
economic leverage.
Americans and he is the worst thing that has
On globalization, he noted a shift over the past
happened to America, and even to the whole
80+ years from multilateralism to
world.
minilateralism (limited partnerships), that the
Joining via Google Meet, Dr. Gouda responded
world is witnessing a transitional phase, with
to Trump’s slogan “Make America Great
the economic center of gravity moving east,
Again” with a famous line from Umm Kulthum
marking the dawn of an Asian century after
song: “You want us to go back in time! tell time
the Atlantic one.
to go back.”. He emphasized that no American
Dr. Gouda acknowledged that Egypt’s
citizen today combines earning, frugality, and
economy is rent-based, relying on: Strategic
productivity. And the U.S. fiscal discipline is
rent, Natural resource rent, Geographic rent,
lacking. He linked this to Ibn Khaldun’s five
including the Suez Canal. However, he warned
stages of state development, stating that
that revenues from the canal may decline due
America is in the fifth stage: extravagance and
to climate change enabling new and shorter
waste.
navigation routes between East and West. He
also referenced “enemies” in the region,
including some Arab states, calling them
“frienemies”, who are attempting to create
alternative trade routes, posing a strategic
threat to the canal. He asserted that Suez
Canal’s value as a strategic asset remains, but
its role as a mere shipping lane is diminishing.

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