In a sweeping critique of what he calls “economic statecraft,” Sachs argued that Washington is no longer using financial power to promote cooperation — but to coerce and destabilize rival governments.

According to Sachs, modern U.S. sanctions policy amounts to “economic warfare.” He pointed specifically to Iran and Venezuela, claiming sanctions were designed not merely to influence policy but to crush entire economies in hopes of triggering regime change.

He described how cutting countries off from dollar-based transactions can paralyze trade, collapse currencies, and spark domestic unrest. But Sachs warned that such tactics come at a long-term cost.

“The dollar’s dominance,” he suggested, “is being abused.”

Sachs argued that America’s unique leverage over global finance — through the dollar system, SWIFT networks, the IMF, and U.S.-controlled financial institutions — has allowed Washington to impose extraterritorial sanctions far beyond its borders. Banks anywhere in the world, he said, risk punishment if they facilitate transactions involving targeted nations.

But now, he claims, that dominance is accelerating the creation of alternatives.

Pointing to Russia and China, Sachs said parallel financial systems are already being built — including non-dollar settlement networks and digital payment platforms designed specifically to avoid U.S. oversight. He predicted that within the next decade, a significant portion of global trade could shift away from the dollar.

If that happens, he warned, U.S. sanctions power would weaken dramatically.

Sachs framed the moment as historic: either Washington rethinks its reliance on financial coercion, or it risks undermining the very currency system that underpins its global influence.

He also tied economic pressure to a broader pattern of regime-change strategies, arguing that sanctions often function as the first phase of political destabilization — softening governments before further intervention.

Taken together, his message was clear: economic dominance is not permanent.

If overused as a weapon, Sachs warned, the dollar’s “exorbitant privilege” could erode — reshaping the global financial order and limiting America’s ability to dictate outcomes abroad.

Analysts say the debate highlights a growing tension in a shifting multipolar world: whether financial coercion preserves U.S. power — or accelerates its decline.