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Paper Soldiers: How the Weaponization of the Dollar Changed the World Order
From Bloomberg News reporter Saleha Mohsin, the untold story of how one of America’s most invincible institutions—the Treasury—has used the U.S. dollar to define America’s role in the world, and our economic future.
In 1995, Treasury Secretary Robert Rubin re-defined the next thirty years of currency policy with the mantra, “A strong dollar is in America’s interest.” That mantra held, ushering in exceptional prosperity and cheap foreign goods, but the strong dollar policy also played a role in the devastating hollowing out of America’s manufacturing sector. Meanwhile, abroad, the United States increasingly turned to the dollar as a weapon of war. In Paper Soldiers , Saleha Mohsin reveals how the Treasury Department has shaped U.S. policy at home and overseas by wielding the American dollar as a weapon—and what that means in a new age of crisis.
For decades, America has preferred its currency superpower-strong, the basis of a "strong dollar" policy that attracted foreign investors and pleased consumers. Drawing on Mohsin's unparalleled access to current and former Treasury officials like Robert Rubin, Steven Mnuchin, and Janet Yellen, Paper Soldiers traces that policy's intended and unintended consequences, including the rise of populist sentiment and trade war with China—culminating in an unprecedented attack on the dollar’s pristine status during the Trump presidency—and connects the dollar's weaponization from 9/11 to the deployment of crippling financial sanctions against Russia. Ultimately, Mohsin argues that, untethered from many of the economic assumptions of the last generation, the power and influence of the American dollar is now at stake.
With first-hand reporting and fresh analysis that illustrates the vast, often unappreciated power that the Treasury Department wields at home and abroad, Paper Soldiers tells the inside story of how we really got here—and the future not only of the almighty dollar, but the nation’s teetering role as a democratic superpower.
In 1995, Treasury Secretary Robert Rubin re-defined the next thirty years of currency policy with the mantra, “A strong dollar is in America’s interest.” That mantra held, ushering in exceptional prosperity and cheap foreign goods, but the strong dollar policy also played a role in the devastating hollowing out of America’s manufacturing sector. Meanwhile, abroad, the United States increasingly turned to the dollar as a weapon of war. In Paper Soldiers , Saleha Mohsin reveals how the Treasury Department has shaped U.S. policy at home and overseas by wielding the American dollar as a weapon—and what that means in a new age of crisis.
For decades, America has preferred its currency superpower-strong, the basis of a "strong dollar" policy that attracted foreign investors and pleased consumers. Drawing on Mohsin's unparalleled access to current and former Treasury officials like Robert Rubin, Steven Mnuchin, and Janet Yellen, Paper Soldiers traces that policy's intended and unintended consequences, including the rise of populist sentiment and trade war with China—culminating in an unprecedented attack on the dollar’s pristine status during the Trump presidency—and connects the dollar's weaponization from 9/11 to the deployment of crippling financial sanctions against Russia. Ultimately, Mohsin argues that, untethered from many of the economic assumptions of the last generation, the power and influence of the American dollar is now at stake.
With first-hand reporting and fresh analysis that illustrates the vast, often unappreciated power that the Treasury Department wields at home and abroad, Paper Soldiers tells the inside story of how we really got here—and the future not only of the almighty dollar, but the nation’s teetering role as a democratic superpower.
304 pages, Hardcover
Published March 19, 2024
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Displaying 1 - 26 of 26 reviews
July 23, 2024
Would've been a mildly interesting book if it wasn't for the misleading title and background (I'm still unsure if this is intentional or not). The author markets the book as an illumination into the dollar's increasing, sometimes abusive, role in international sanctions and economic warfare, and how as a result, foreign countries are endogenously shifting away from the dollar.
But that theme just consisted of about 10% of the book. The other 90% is a painful slog of waffle on anecdotal histories of Treasury secretaries, an elementary history of the dollar, and anti-Trump and anti-protectionist rhetoric (not that I support Trump and protectionism). Tiring divergences and detours from the theme of international sanctions that many times made me wonder 'wtf does this have to do with the dollar's weaponization?'. A feeble attempt by the author to hide the fact that she has nothing particularly insightful to say about the current hotly contested affair of 'de-dollarization'. How did the author gain this writing contract? This book reminds me of Batman v Superman - the whole film is hyped and marketed as an epic battle between the titular characters, but then they just fight for 10 minutes and the rest of the film is just weary slog that no one signed up for.
The author had access to private interviews with many top-notch figures in economic policy and finance e.g. Mark Sobel and Steve Mnuchin himself, but I struggled to see anything insightful in these chapters, other than interesting personal anecdotes, which, I suppose, you do need private interviews to have knowledge of.
My warning to future readers - DON'T pick up this book if you're, like me, highly interested in how the weaponization of the dollar changed the world order (the literal title)! DO pick it up if you're interested in tea-gossip of Treasury Secretaries, and if you have only minimal knowledge of economics and finance (the author's final brief analysis of the dollar's future looks like it could be written by ChatGPT).
So many questions that the author didn't even attempt to answer - What sort of infrastructure are foreign countries already setting up to move away from the dollar? To what extent have these sanctions already been levied (that I can't parse from picking up a newspaper, not a whole book)? What are the digital currency alternatives to the dollar, which the Fed is currently behind on? What are some arguments to the contrary? Has the US finally borrowed to much? Etc.
Maybe some people should be reading books instead of writing them.
But that theme just consisted of about 10% of the book. The other 90% is a painful slog of waffle on anecdotal histories of Treasury secretaries, an elementary history of the dollar, and anti-Trump and anti-protectionist rhetoric (not that I support Trump and protectionism). Tiring divergences and detours from the theme of international sanctions that many times made me wonder 'wtf does this have to do with the dollar's weaponization?'. A feeble attempt by the author to hide the fact that she has nothing particularly insightful to say about the current hotly contested affair of 'de-dollarization'. How did the author gain this writing contract? This book reminds me of Batman v Superman - the whole film is hyped and marketed as an epic battle between the titular characters, but then they just fight for 10 minutes and the rest of the film is just weary slog that no one signed up for.
The author had access to private interviews with many top-notch figures in economic policy and finance e.g. Mark Sobel and Steve Mnuchin himself, but I struggled to see anything insightful in these chapters, other than interesting personal anecdotes, which, I suppose, you do need private interviews to have knowledge of.
My warning to future readers - DON'T pick up this book if you're, like me, highly interested in how the weaponization of the dollar changed the world order (the literal title)! DO pick it up if you're interested in tea-gossip of Treasury Secretaries, and if you have only minimal knowledge of economics and finance (the author's final brief analysis of the dollar's future looks like it could be written by ChatGPT).
So many questions that the author didn't even attempt to answer - What sort of infrastructure are foreign countries already setting up to move away from the dollar? To what extent have these sanctions already been levied (that I can't parse from picking up a newspaper, not a whole book)? What are the digital currency alternatives to the dollar, which the Fed is currently behind on? What are some arguments to the contrary? Has the US finally borrowed to much? Etc.
Maybe some people should be reading books instead of writing them.
November 3, 2024
In the beginning there was Breton Woods, making the American dollar the cornerstone of world trade. Then came SWIFT which allows banks to trade in US dollars. The various Treasury chiefs like Rubin and Summers supported the strong dollar. This allows Americans to buy cheap goods but export industries suffered. So that created the Rust Belt and jobless blue collar workers. So they voted for Trump.
But by then foreigners held lots more American debt and the Treasury apparently cannot really control the price of dollars any more.
But it can use sanctions to punish countries that America does not like, like Russia and Venezuela. Overnight Putin’s war chest is gone. This will surely be the signal for other countries to use less dollars. But that is very difficult, and anyway America is growing when Europe is slow and China is having a crisis. So all’s good.
But by then foreigners held lots more American debt and the Treasury apparently cannot really control the price of dollars any more.
But it can use sanctions to punish countries that America does not like, like Russia and Venezuela. Overnight Putin’s war chest is gone. This will surely be the signal for other countries to use less dollars. But that is very difficult, and anyway America is growing when Europe is slow and China is having a crisis. So all’s good.
April 29, 2024
Overall, this is a good subject for a book. It just isn't written very well. With the first chapter titled "Surviving Trump," you quickly realize what you're about to read... and it reads exactly as expected: Wall Street = bad, Republicans = sabotaging the nation (with 2 exceptions), and Democrats = protecting national interests. Seriously, with all the names and people spoken about in this work, only one Republican official (Treasury) was praised, and that's because he switched parties (you get reminded of this roughly 5 times).
The concept really is good. The openly biased writing style is really poor. Would love to see something like this from a neutral lens.
The concept really is good. The openly biased writing style is really poor. Would love to see something like this from a neutral lens.
December 2, 2024
Decent book overall, but was surprised (and appalled) by the author’s dismissal of Bitcoin as a potential candidate to replace the U.S. dollar as the world’s reserve currency. The topic was given approximately one sentence at the very end of the book. In that sentence, the author referred to “cryptocurrencies”, either afraid to to call out Bitcoin by name or perhaps somehow unaware of Bitcoin’s superior monetary properties, robust security, massive market cap, and widespread/growing adoption. For a book published in 2024 I would have expected at the very least an attempt to address the elephant in the room.
June 25, 2025
The book Paper Soldiers: How the Weaponization of the Dollar Changed the World Order by Saleha Mohsin recounts how various U.S. administrations have used the dominant position of the U.S. dollar in international currency and payments markets to pursue their geopolitical goals.
The book is an accessible read (about 300 pages) with each chapter narrating specific events and providing relevant context to help readers understand the motivations behind key actions. It does not require any advanced knowledge of macroeconomics or the global trading system.
It begins in the early 1990s, when Bob Rubin, President Clinton’s Treasury Secretary, publicly declared that a strong U.S. dollar was in the national interest. These statements contributed to a gradual strengthening of the dollar against other major currencies. This, in turn, enabled the U.S. government to finance its deficits at attractive interest rates, as investors increasingly viewed the dollar as a safe-haven currency and a foundation of global trade and finance. However, one unintended consequence of this policy was a decline in the competitiveness of U.S. manufacturing. The stronger dollar made it cheaper for foreign countries, such as China, to sell goods in U.S. markets, thus undercutting domestic producers.
The U.S. first significantly intervened in the global payments and trade system after the 9/11 attacks, when it requested information from the international payments clearing system about terrorist financing activities. Given the widespread global support for anti-terrorism efforts, the supposedly neutral system—SWIFT—agreed to allow the U.S. access to track illicit terrorist and criminal activity. Over time, U.S. reliance on the system deepened. Rather than deploying military forces, the government increasingly used financial tools to cut off terrorist groups and criminal cartels from the global payment system—an effective means of exerting pressure without military engagement.
The most recent and high-profile example of using the U.S. dollar system to achieve geopolitical aims occurred under the Biden administration, when it froze Russia’s dollar-based assets held in overseas bank accounts as punishment for the 2022 invasion of Ukraine. The U.S. managed to freeze nearly 50% of Russia’s foreign exchange reserves, as these funds were held in U.S. dollar–denominated accounts at banks around the world. The U.S. mandated that these banks would lose access to the dollar-based settlement system unless they froze the Russian assets and withheld them from the Russian government.
In its final chapter, the book explores the long-term ramifications of such actions. While U.S. policies have eroded global confidence in the dollar as a neutral and stable medium for international payments and settlements, the book argues that the dollar is likely to maintain its dominant role—primarily because no viable alternative currency currently exists.
Overall, the book is written in a narrative style and draws on interviews with several Treasury Secretaries and senior Treasury Department officials. It offers a compelling and accessible account for readers without a background in economics or finance, helping them understand how U.S. financial policy decisions shape global markets and real-world outcomes.
The book is an accessible read (about 300 pages) with each chapter narrating specific events and providing relevant context to help readers understand the motivations behind key actions. It does not require any advanced knowledge of macroeconomics or the global trading system.
It begins in the early 1990s, when Bob Rubin, President Clinton’s Treasury Secretary, publicly declared that a strong U.S. dollar was in the national interest. These statements contributed to a gradual strengthening of the dollar against other major currencies. This, in turn, enabled the U.S. government to finance its deficits at attractive interest rates, as investors increasingly viewed the dollar as a safe-haven currency and a foundation of global trade and finance. However, one unintended consequence of this policy was a decline in the competitiveness of U.S. manufacturing. The stronger dollar made it cheaper for foreign countries, such as China, to sell goods in U.S. markets, thus undercutting domestic producers.
The U.S. first significantly intervened in the global payments and trade system after the 9/11 attacks, when it requested information from the international payments clearing system about terrorist financing activities. Given the widespread global support for anti-terrorism efforts, the supposedly neutral system—SWIFT—agreed to allow the U.S. access to track illicit terrorist and criminal activity. Over time, U.S. reliance on the system deepened. Rather than deploying military forces, the government increasingly used financial tools to cut off terrorist groups and criminal cartels from the global payment system—an effective means of exerting pressure without military engagement.
The most recent and high-profile example of using the U.S. dollar system to achieve geopolitical aims occurred under the Biden administration, when it froze Russia’s dollar-based assets held in overseas bank accounts as punishment for the 2022 invasion of Ukraine. The U.S. managed to freeze nearly 50% of Russia’s foreign exchange reserves, as these funds were held in U.S. dollar–denominated accounts at banks around the world. The U.S. mandated that these banks would lose access to the dollar-based settlement system unless they froze the Russian assets and withheld them from the Russian government.
In its final chapter, the book explores the long-term ramifications of such actions. While U.S. policies have eroded global confidence in the dollar as a neutral and stable medium for international payments and settlements, the book argues that the dollar is likely to maintain its dominant role—primarily because no viable alternative currency currently exists.
Overall, the book is written in a narrative style and draws on interviews with several Treasury Secretaries and senior Treasury Department officials. It offers a compelling and accessible account for readers without a background in economics or finance, helping them understand how U.S. financial policy decisions shape global markets and real-world outcomes.
May 14, 2024
Leest makkelijk weg en wel interessant maar geen diepe inzichten
January 30, 2025
absolutely the wrong time to read this with current events and all … i need a fantasy book next
March 4, 2025
As I was doing final edits on this review in March 2025, the US president Trump dropped an executive order to put cryptocurrency into a federal strategic reserve. Such an act seems to undermine the core concepts and very notable strengths of the US dollar as the world reserve currency since Bretton Woods. Especially after all the talk in this book of dollar value dropping on slight variations to the Secretary of Treasury’s phrasing “a strong dollar is in our best interest,” this is… weird… one of those crucial redirects for the entire world that will likely be discussed in history books much like Nixon taking us off the gold standard. From where I’m sitting (on a bench nearby the US Treasury HQ lol), this EO seems to be undermining the faith in the USD and only makes sense if one believes the USD is going to collapse... sooooooooooo... good times.
Anywho. Here was my review from before I read that headline:
This is a storyline about more recent US Treasury actions and restructuring and not at all a future-focused book. Furthermore, I’m not sure that I’d consider it to be a very thought-provoking book on its own - but that may be because I previously knew about most of the more historic and technical points discussed. In the bullet points below one could surmise a change in the trend insofar as the strong dollar mantra (that is to say a shift away from the strong dollar mantra with the reelection of Donald Trump in 2024, which was after publication) but those and so many other possible future trends aren’t really discussed in ”Paper Soldiers”.
After reading this, I am more cognizant of the applied changes we will likely see in the US with Trump v2 and his initial Treasury Secretary, Scott Bessent, who appears to be anti-China and pro-tariff. In the short term, dollar devaluing, tarriffs, and trade wars are likely going to be a painful process but time will tell if that increases the long-term quality of life of the “rust belt” regions of the US - regions where I grew up and worked some of those manufacturing jobs years and years ago. (To be very clear on my understanding of US tariffs, the tariffs from the Hawley-Smoot Act ~100 years ago were an unabashed failure - hell, even the Trump v1 tariffs were a numeric failure). Sorry, global financial system, a weak dollar seems probable over the next 4 years; I’m curious to see how other nations react to these next 4 years and will be very actively watching the trends with US Treasury, bonds, and FOREX (as always).
Key historic points:
- Bretton Woods established US dollar hegemony 1944
- Dollar drops the gold standard 1971; dollar remains prime worldwide and minimal manipulation of the dollar is an important part of global financial norms
- Society for Worldwide Interbank Financial Telecommunication (SWIFT) established 1973 makes international transactions much easier; dollar becomes even more important globally.
- Globalization and strong dollar policy negatively impacts American manufacturing
- Massive holdings of the dollar prevent US from manipulating its currency; one less tool in the toolbelt to assist American manufacturing
- 9/11 and the subsequent American war on terror sees Treasury taking on a new role using SWIFT and sanctions to cut off funding to “enemies”
- Increased and continued use of sanctions is alienating fringe groups from the global financial system, incentivising many to find alternatives
Key figures (time as Secretary of Treasury):
- Salmon P. Chase (1861-64): Treasury during Civil War, set national banking system and paper currency
- Bob Rubin (1995-99): High growth and low inflation; strong dollar
- Larry Summers (1999-2001): focus internationally; strong dollar
- Hank Paulson (2006-2009): acknowledged wealth gap, US-China dialogue, guided US through ‘08 financial crisis; strong dollar
- Tim Geitner (2009-13): bailouts post ‘08, China currency manipulation, continued weaponization of dollar; strong dollar
- Steve Mnuchin (2017-21): tax reform, continued weaponization of dollar; kinda flimsy on the strong dollar
If this book piqued your interest, I’d highly recommend supplementing it with more in-depth and precise works like: "House of Morgan" (banking behemoths) and "Alexander Hamilton" (the first Secretary of Treasury), both by Ron Chernow or even "Chip War" by Chris Miller as it covers applied issues related to trade, strong dollar, and intellectual property within the realm of technology design and manufacturing. For a more conceptual read, I’d recommend "The Globalization Paradox: Democracy and the Future of the World Economy", which is from 2010 but is simply a great read about the confluence of issues discussed in this book (Thesis: “We cannot simultaneously pursue democracy, national determination, and economic globalization.”-Dani Rodrik).
My one takeaway quote:
“The decisions made at Bretton Woods… meant that foreigners looking for a safe place to store their cash could forever look to the United States; allowing the government to borrow cheap and spend big on a better future - something that no other nation as heavily indebted as America has persuaded investors to do. It's a power loop that the United States still enjoys today. Trust in America’s dollar and its democratic government allows for cheap debt financing, which buys healthcare built on the most advanced research and development and inventions like airplanes and the iPhone… That investment boosts the nations economic, military, and technological prowess, making its economy and the dollar even more attractive. But that power comes with immense responsibility.”
-Saleha Mahsin, “Paper Soldiers”
Anywho. Here was my review from before I read that headline:
This is a storyline about more recent US Treasury actions and restructuring and not at all a future-focused book. Furthermore, I’m not sure that I’d consider it to be a very thought-provoking book on its own - but that may be because I previously knew about most of the more historic and technical points discussed. In the bullet points below one could surmise a change in the trend insofar as the strong dollar mantra (that is to say a shift away from the strong dollar mantra with the reelection of Donald Trump in 2024, which was after publication) but those and so many other possible future trends aren’t really discussed in ”Paper Soldiers”.
After reading this, I am more cognizant of the applied changes we will likely see in the US with Trump v2 and his initial Treasury Secretary, Scott Bessent, who appears to be anti-China and pro-tariff. In the short term, dollar devaluing, tarriffs, and trade wars are likely going to be a painful process but time will tell if that increases the long-term quality of life of the “rust belt” regions of the US - regions where I grew up and worked some of those manufacturing jobs years and years ago. (To be very clear on my understanding of US tariffs, the tariffs from the Hawley-Smoot Act ~100 years ago were an unabashed failure - hell, even the Trump v1 tariffs were a numeric failure). Sorry, global financial system, a weak dollar seems probable over the next 4 years; I’m curious to see how other nations react to these next 4 years and will be very actively watching the trends with US Treasury, bonds, and FOREX (as always).
Key historic points:
- Bretton Woods established US dollar hegemony 1944
- Dollar drops the gold standard 1971; dollar remains prime worldwide and minimal manipulation of the dollar is an important part of global financial norms
- Society for Worldwide Interbank Financial Telecommunication (SWIFT) established 1973 makes international transactions much easier; dollar becomes even more important globally.
- Globalization and strong dollar policy negatively impacts American manufacturing
- Massive holdings of the dollar prevent US from manipulating its currency; one less tool in the toolbelt to assist American manufacturing
- 9/11 and the subsequent American war on terror sees Treasury taking on a new role using SWIFT and sanctions to cut off funding to “enemies”
- Increased and continued use of sanctions is alienating fringe groups from the global financial system, incentivising many to find alternatives
Key figures (time as Secretary of Treasury):
- Salmon P. Chase (1861-64): Treasury during Civil War, set national banking system and paper currency
- Bob Rubin (1995-99): High growth and low inflation; strong dollar
- Larry Summers (1999-2001): focus internationally; strong dollar
- Hank Paulson (2006-2009): acknowledged wealth gap, US-China dialogue, guided US through ‘08 financial crisis; strong dollar
- Tim Geitner (2009-13): bailouts post ‘08, China currency manipulation, continued weaponization of dollar; strong dollar
- Steve Mnuchin (2017-21): tax reform, continued weaponization of dollar; kinda flimsy on the strong dollar
If this book piqued your interest, I’d highly recommend supplementing it with more in-depth and precise works like: "House of Morgan" (banking behemoths) and "Alexander Hamilton" (the first Secretary of Treasury), both by Ron Chernow or even "Chip War" by Chris Miller as it covers applied issues related to trade, strong dollar, and intellectual property within the realm of technology design and manufacturing. For a more conceptual read, I’d recommend "The Globalization Paradox: Democracy and the Future of the World Economy", which is from 2010 but is simply a great read about the confluence of issues discussed in this book (Thesis: “We cannot simultaneously pursue democracy, national determination, and economic globalization.”-Dani Rodrik).
My one takeaway quote:
“The decisions made at Bretton Woods… meant that foreigners looking for a safe place to store their cash could forever look to the United States; allowing the government to borrow cheap and spend big on a better future - something that no other nation as heavily indebted as America has persuaded investors to do. It's a power loop that the United States still enjoys today. Trust in America’s dollar and its democratic government allows for cheap debt financing, which buys healthcare built on the most advanced research and development and inventions like airplanes and the iPhone… That investment boosts the nations economic, military, and technological prowess, making its economy and the dollar even more attractive. But that power comes with immense responsibility.”
-Saleha Mahsin, “Paper Soldiers”
October 25, 2024
Paper Soldiers: How the Weaponization of the Dollar Changed the World Order by Saleha Mohsin talks about a critical topic concerning both today and the future in regard to the world’s most used currency, the United States dollar. Over the decades, the dollar has been slowly used to transform both the economic landscape around the world and, more recently, using it as a weapon to further United States foreign goals. But is this a wise choice? There’s always been talks that one day, a different currency will replace the dollar. Nothing lasts forever. With the United States more and more often flexing their power, they have slowly over the decades started weaponizing the dollar, mainly via sanctions, to punish foreign countries and adversaries. But this flexing of power and “bullying” comes at a cost in that even allies of the United States are starting to have doubts whether sticking with the almighty dollar is smart as one day they may find themselves on the other end of the sanctions list and just like that, locked out of their country’s asset reserve in dollars. It’s a high stake game that is for the United States to lose as the incumbent, and one that will have dramatic worldwide consequences.
“Faith in democracy and faith in the markets go hand in hand.” - Robert Rubin – 70th U.S. Secretary of the Treasury
Paper Soldiers is written by a Bloomberg journalist, and it shows. The book seems like one very, very long, researched article. For the majority of it, Saleha talks about the many Treasury secretaries of our history, the very stewards of the dollar currency. They are supposed to be apolitical. Their main task is to be the guardian of the most used currency in the world and to keep it that way. We learn very quickly how the dollar currency was created and how it became to be the world’s currency after World War II. A large portion of the book also goes over how Treasury and the markets, particularly in regard to the Wall Street traders, have over time been linked to one another. The scrutiny of each new appointed Treasury secretary over the years have come to relied on “strong dollar” mantra to calm markets and project strength in the US dollar. However, while a strong dollar is good when it comes to globalization, it has upended the lives of many in the manufacturing sector. Saleha also helps to show us that after the terrorist act of 9/11/2001, the weaponizations of the dollar became a real thing.
“A strong dollar is in our national interest.” - Robert Rubin – 70th U.S. Secretary of the Treasury
Paper Soldiers I think would pair very well with The Lords of Easy Money. A common theme highlighted in both is how it can be seen by the public eye of the nation, putting the interests of the wealthy above the common people and everyday workers. Bailing out huge corporations at the expense of taxpayer dollars for the very crisis that they helped create in the first place definitely still have people feeling the gut punch till this day. Yet, what is the alternative? The United States has always had the need to project strength and stability. That is one of the consequences of having the dollar as the world’s most used currency. The dollar needed to remain strong in order for the US to get cheap imports from China and other countries to feed into our consumption economy. Yet, the problem has brewed for far too long for it to be further ignored. Saleha goes to show how each administration throughout the years as approached the “China problem”. She helps highlights how both the United States and China have a mutual dependency with each other. While previous administrations seem to have been walking on eggshells when dealing with China in hopes of slow but gradual increase of their currency, we are now in the phase of aggressive tariffs being levied with little disregard to how it will also affect the US.
One damaging side effect of a stated policy desiring strong dollar was that it meant that the government was choosing winners and losers in the economy, a betrayal that rarely amounts to good policy. - Author
I liked Paper Soldiers but would have preferred much more input and thoughtful opinions from either the author herself, or if that sounded too bias, then from the many interviewees she spoke with on the different topics discussed. Currency manipulation being used as a weapon is a real thing. Purposely driving down one’s own currency to boost export, like what China has been accused of doing, is now taking center stage as the manufacturing problems we are having at home is also taking the front page for all to notice. Will the US go back down the same path in which it has weaned itself off from doing in the previous couple of decades? With the political scene being so divided and unpredictable now, more than any other point in history, can other nations continue to keep their faith in the United States’ democratic institutions being upheld? Paper Soldiers explores these themes and more where the dollar currency is concerned. It will truly be interesting to watch how things unfold in the next decade or so.
“Faith in democracy and faith in the markets go hand in hand.” - Robert Rubin – 70th U.S. Secretary of the Treasury
Paper Soldiers is written by a Bloomberg journalist, and it shows. The book seems like one very, very long, researched article. For the majority of it, Saleha talks about the many Treasury secretaries of our history, the very stewards of the dollar currency. They are supposed to be apolitical. Their main task is to be the guardian of the most used currency in the world and to keep it that way. We learn very quickly how the dollar currency was created and how it became to be the world’s currency after World War II. A large portion of the book also goes over how Treasury and the markets, particularly in regard to the Wall Street traders, have over time been linked to one another. The scrutiny of each new appointed Treasury secretary over the years have come to relied on “strong dollar” mantra to calm markets and project strength in the US dollar. However, while a strong dollar is good when it comes to globalization, it has upended the lives of many in the manufacturing sector. Saleha also helps to show us that after the terrorist act of 9/11/2001, the weaponizations of the dollar became a real thing.
“A strong dollar is in our national interest.” - Robert Rubin – 70th U.S. Secretary of the Treasury
Paper Soldiers I think would pair very well with The Lords of Easy Money. A common theme highlighted in both is how it can be seen by the public eye of the nation, putting the interests of the wealthy above the common people and everyday workers. Bailing out huge corporations at the expense of taxpayer dollars for the very crisis that they helped create in the first place definitely still have people feeling the gut punch till this day. Yet, what is the alternative? The United States has always had the need to project strength and stability. That is one of the consequences of having the dollar as the world’s most used currency. The dollar needed to remain strong in order for the US to get cheap imports from China and other countries to feed into our consumption economy. Yet, the problem has brewed for far too long for it to be further ignored. Saleha goes to show how each administration throughout the years as approached the “China problem”. She helps highlights how both the United States and China have a mutual dependency with each other. While previous administrations seem to have been walking on eggshells when dealing with China in hopes of slow but gradual increase of their currency, we are now in the phase of aggressive tariffs being levied with little disregard to how it will also affect the US.
One damaging side effect of a stated policy desiring strong dollar was that it meant that the government was choosing winners and losers in the economy, a betrayal that rarely amounts to good policy. - Author
I liked Paper Soldiers but would have preferred much more input and thoughtful opinions from either the author herself, or if that sounded too bias, then from the many interviewees she spoke with on the different topics discussed. Currency manipulation being used as a weapon is a real thing. Purposely driving down one’s own currency to boost export, like what China has been accused of doing, is now taking center stage as the manufacturing problems we are having at home is also taking the front page for all to notice. Will the US go back down the same path in which it has weaned itself off from doing in the previous couple of decades? With the political scene being so divided and unpredictable now, more than any other point in history, can other nations continue to keep their faith in the United States’ democratic institutions being upheld? Paper Soldiers explores these themes and more where the dollar currency is concerned. It will truly be interesting to watch how things unfold in the next decade or so.
November 6, 2024
...really, 3.5 stars. I watched a handful of interviews Saleha Mohsin gave on this book and got super-excited about it. The very first line gives away the book's premise:
"It is possible that 5:13 p.m. on Saturday, February 26, 2022 will one day be seen as the precise moment the ebb of the dollar empire began."
The premise of Paper Soldiers is pretty straight-forward: Has the expansion of financial sanctions as weapons of economic warfare crossed a line? Is participation in the global financial system a right or a privilege for individuals, corporations and/or nations? Is a dollar an asset or a liability?
Now, there is a metric sh*t-ton of schlock cranked out on this topic every year (lookin at you, Jim Rickards Peter Schiff Mike Maloney Doug Casey et. al.) It's easy to stick your head in the goldbug echo chamber because trust me, the sky is always falling. The crisis is just weeks if not days away, and the only thing than can save us is a return to the barbarous relic.
So I was delighted to pick up a book by a respected Bloomberg reporter whose work didn't come with a built-in quid pro quo. Mohsin isn't trying to sell the reader anything.
Instead, she tells a story that starts in the Reagan years. About the U.S. dollar and America's dollar policy. Short version:
- A strong dollar is great, because it makes imported goods cheaper... at the expense of domestic manufacturing and production.
- A weak dollar is great, because it makes domestic goods more affordable for the rest of the world... at the expense of sparking a currency war.
- Either way, the dollar's relative value matters because the entire world buys and sells, haggles and budgets, in dollars.
This is just about the only book I've ever read that gives more than a nod to the price we paid for decades of strong dollar policy. That was refreshing.
So: After the terror attacks of September 11, 2001, the U.S. Treasury Department developed a financial intelligence division. Their mission: Follow the money, find the bad guys and cut them off. Which, I mean, you can't prove a negative, but the ratio of passenger jets colliding with landmarks rapidly and asymptotically approached zero. PLUS, this approach was both less expensive and more morally defensible than simply invading sovereign nations.
Over the years, economic sanctions became the preferred method of punishing recalcitrant nations/corporations/individuals. It's often called "weaponizing the dollar," hence the book's title. Mohsin interviews dozens of Treasury Department appointees and employees in the course of her tale.
Then, in the wake of Russia's 2022 invasion of Ukraine, the Treasury Department went even farther. Russia was already sanctioned after their 2014 seizure of Crimea. That wasn't enough. THIS time, President Biden wanted to use the "nuclear option" of dollar weaponization, prohibiting the entire nation from participating in the global financial system. And more, to freeze and then seize Russia's dollar reserves.
It's an interesting story! But it begins at the ending -- it asks then fails to answer the big question.
Arguably that's not fair, right? Because you can't know in advance which individual straw collapsed the camel. She stops there. The story doesn't!
Overall: Very well written. Greatly detailed, exceptionally researched. Too light on geopolitical consequences though -- would've loved to see an interview with, say, the man on the street in Moscow or Tehran. What's their take? Instead, we get a mostly insider perspective on the weaponization of the dollar and its consequences.
Recommended if this is the sort of thing you consider a fun beach read. ALSO recommended if you have an interest in global economics/geopolitics and you're just about had it with the cabal of chicken littles shilling gold.
"It is possible that 5:13 p.m. on Saturday, February 26, 2022 will one day be seen as the precise moment the ebb of the dollar empire began."
The premise of Paper Soldiers is pretty straight-forward: Has the expansion of financial sanctions as weapons of economic warfare crossed a line? Is participation in the global financial system a right or a privilege for individuals, corporations and/or nations? Is a dollar an asset or a liability?
Now, there is a metric sh*t-ton of schlock cranked out on this topic every year (lookin at you, Jim Rickards Peter Schiff Mike Maloney Doug Casey et. al.) It's easy to stick your head in the goldbug echo chamber because trust me, the sky is always falling. The crisis is just weeks if not days away, and the only thing than can save us is a return to the barbarous relic.
So I was delighted to pick up a book by a respected Bloomberg reporter whose work didn't come with a built-in quid pro quo. Mohsin isn't trying to sell the reader anything.
Instead, she tells a story that starts in the Reagan years. About the U.S. dollar and America's dollar policy. Short version:
- A strong dollar is great, because it makes imported goods cheaper... at the expense of domestic manufacturing and production.
- A weak dollar is great, because it makes domestic goods more affordable for the rest of the world... at the expense of sparking a currency war.
- Either way, the dollar's relative value matters because the entire world buys and sells, haggles and budgets, in dollars.
This is just about the only book I've ever read that gives more than a nod to the price we paid for decades of strong dollar policy. That was refreshing.
So: After the terror attacks of September 11, 2001, the U.S. Treasury Department developed a financial intelligence division. Their mission: Follow the money, find the bad guys and cut them off. Which, I mean, you can't prove a negative, but the ratio of passenger jets colliding with landmarks rapidly and asymptotically approached zero. PLUS, this approach was both less expensive and more morally defensible than simply invading sovereign nations.
Over the years, economic sanctions became the preferred method of punishing recalcitrant nations/corporations/individuals. It's often called "weaponizing the dollar," hence the book's title. Mohsin interviews dozens of Treasury Department appointees and employees in the course of her tale.
Then, in the wake of Russia's 2022 invasion of Ukraine, the Treasury Department went even farther. Russia was already sanctioned after their 2014 seizure of Crimea. That wasn't enough. THIS time, President Biden wanted to use the "nuclear option" of dollar weaponization, prohibiting the entire nation from participating in the global financial system. And more, to freeze and then seize Russia's dollar reserves.
It's an interesting story! But it begins at the ending -- it asks then fails to answer the big question.
Arguably that's not fair, right? Because you can't know in advance which individual straw collapsed the camel. She stops there. The story doesn't!
Overall: Very well written. Greatly detailed, exceptionally researched. Too light on geopolitical consequences though -- would've loved to see an interview with, say, the man on the street in Moscow or Tehran. What's their take? Instead, we get a mostly insider perspective on the weaponization of the dollar and its consequences.
Recommended if this is the sort of thing you consider a fun beach read. ALSO recommended if you have an interest in global economics/geopolitics and you're just about had it with the cabal of chicken littles shilling gold.
April 12, 2025
84%
This is like the perfect time to read this book, because
Talking about, uh, dip in the stock market. Well, Trump's and presidency. Uh, it is April, 12th 2025 and that whole all the whole last week that is, that is great way to cover that.
The thing is the pretty the president's in policies influence the stock market, okay. But They don't control it that much. And the big thing is like, okay, well, why did it go back up again? Last week? It's like listen. People like to make stories on the stock market. Well we say is The best Trader is the best one with the best story.
It's like, oh yeah, they totally makes sense. Wow, I can't believe that policy did that. That kind of logic. It doesn't really mean anything necessarily.
Uh, if you ask other, Economists, like why did the stock market go up? Why did the stock market go down? It's just Market fluctuations. A lot of it's algorithmic.
Something a lot of it's just move people moving things around, sometimes there's big fluctuations like big spikes, big dips, sometimes those can be based off from Changes in the market changes in emotion. Um, outright manipulation shake out shares so that. Bigger players can make money later on.
And, Yeah.
So, looking at the economic policies that we've had in the more recent years 1900s to 2020s. And You know, there's a lot of time there's a lot of influence in different areas and
The dollar manipulation, especially that's a big thing that we focus on.
You know, sometimes it sucks. Sometimes it doesn't in general I would say, it's better to not. Uh restrict trading so much, not restricted, tariffs, just kind of Just really just let things play out faster.
But there are of course, especially use cases like,
Sin goods for instance, The syntaxes.
Fossil fuels.
And I was thinking about this because I do a little bit of manufacturing, and
Generally speaking. It's not good to do manufacturing in the US anymore because of policies and the expenses with it.
It's pretty much a dead.
In most cases. Uh, if you're very aggressive. And doing it for the right reasons, you can absolutely make it killing, but
My assistant was even saying, you know, as we get bigger. We're going to want to. Outsource, a lot of there are work, too Asia.
This is like the perfect time to read this book, because
Talking about, uh, dip in the stock market. Well, Trump's and presidency. Uh, it is April, 12th 2025 and that whole all the whole last week that is, that is great way to cover that.
The thing is the pretty the president's in policies influence the stock market, okay. But They don't control it that much. And the big thing is like, okay, well, why did it go back up again? Last week? It's like listen. People like to make stories on the stock market. Well we say is The best Trader is the best one with the best story.
It's like, oh yeah, they totally makes sense. Wow, I can't believe that policy did that. That kind of logic. It doesn't really mean anything necessarily.
Uh, if you ask other, Economists, like why did the stock market go up? Why did the stock market go down? It's just Market fluctuations. A lot of it's algorithmic.
Something a lot of it's just move people moving things around, sometimes there's big fluctuations like big spikes, big dips, sometimes those can be based off from Changes in the market changes in emotion. Um, outright manipulation shake out shares so that. Bigger players can make money later on.
And, Yeah.
So, looking at the economic policies that we've had in the more recent years 1900s to 2020s. And You know, there's a lot of time there's a lot of influence in different areas and
The dollar manipulation, especially that's a big thing that we focus on.
You know, sometimes it sucks. Sometimes it doesn't in general I would say, it's better to not. Uh restrict trading so much, not restricted, tariffs, just kind of Just really just let things play out faster.
But there are of course, especially use cases like,
Sin goods for instance, The syntaxes.
Fossil fuels.
And I was thinking about this because I do a little bit of manufacturing, and
Generally speaking. It's not good to do manufacturing in the US anymore because of policies and the expenses with it.
It's pretty much a dead.
In most cases. Uh, if you're very aggressive. And doing it for the right reasons, you can absolutely make it killing, but
My assistant was even saying, you know, as we get bigger. We're going to want to. Outsource, a lot of there are work, too Asia.
June 25, 2024
A great primer on these issues, but the book never went into deeper detail. I wasn't expecting a textbook, but the actual "Paper Soldiers" content is barely a tenth of the text and is quite simplistic. The conclusion feels more like an introduction into the nitty gritty of dollar weaponization and people's reactions to it, but the payoff never comes. The book focuses more on personalities and politics and the "kremlinology" of traders hanging on every word a Treasury Secretary says for their trades, which leads to hysterical market movements. The book shines brightest when it is describing the pressure the Secretaries are under to be careful exactly what they say and to manage their relationship with the politicians in order to maintain their role in making economic policy.
I feel like the book could have benefited from a few more pages on Russian preparation for sanctions after the 2014 round, involving fewer dollar debt instruments, dedollarization of central bank assets, dedollarization of trade etc. It would not have been much to add, and it would have illustrated what others thought about the potential of the dollar as a weapon. Without this, and other segments like it, the book feels superficial. The SWIFT cut-off is barely mentioned and there is no mention of China's CIPS and Russia's own system, which would have illustrated the author's point on weaponization leading to effects on dollar hegemony.
It is also not helped by superficial political readings that the author shoehorns in, for instance on the January 6th riots or the Russia collusion angle for the 2016 elections. One gets the feeling that the author actually agrees with a lot of the populist agenda, given effusive descriptions of the deindustrialization America went through and how it affected the population, but is upset that it was Trump who cut the Gordian knot and that the new rebalancing involves taking an axe to the smooth and intellectually satisfying framework that existed before.
In any case, a good book, but not for what the title promised. The book in the title would be the sequel of this book.
I feel like the book could have benefited from a few more pages on Russian preparation for sanctions after the 2014 round, involving fewer dollar debt instruments, dedollarization of central bank assets, dedollarization of trade etc. It would not have been much to add, and it would have illustrated what others thought about the potential of the dollar as a weapon. Without this, and other segments like it, the book feels superficial. The SWIFT cut-off is barely mentioned and there is no mention of China's CIPS and Russia's own system, which would have illustrated the author's point on weaponization leading to effects on dollar hegemony.
It is also not helped by superficial political readings that the author shoehorns in, for instance on the January 6th riots or the Russia collusion angle for the 2016 elections. One gets the feeling that the author actually agrees with a lot of the populist agenda, given effusive descriptions of the deindustrialization America went through and how it affected the population, but is upset that it was Trump who cut the Gordian knot and that the new rebalancing involves taking an axe to the smooth and intellectually satisfying framework that existed before.
In any case, a good book, but not for what the title promised. The book in the title would be the sequel of this book.
May 10, 2024
Clever title, which implies that the book is supposed to be about the weaponization of the U.S. Dollar. Imo the book is actually just a cherry-picked description of the tenures of various U.S. Treasury secretaries: Bob Rubin, Larry Summers, John Snow, Hank Paulson, Tim Geitner, Jack Lew, and Steve Mnuchin, with also a bit about Janet Yellen. There were some tangential references to noteworthy events that affected global trade and monetary policy (e.g., Bretton Woods, coming off the gold-standard) but nothing outwardly nefarious besides some allusions to protectionism and monetary sanctions. My only real takeaway was the complicated nature of foreign exchange and how the strength of the Dollar can be a double-edged sword specific to certain industries, consumers, etc. The best part of the book was the final couple of pages with a superficial discussion about why author Saleha Mohsin believes that the Dollar will not be dethroned as the global reserve currency (because of, e.g., China’s current woes, the Euro’s insufficient market share, etc.) though Ms. Mohsin does seem to echo concerns about mounting U.S. debt. (A better book on the topic of monetary machinations is Currency Wars by James Rickards.)
December 2, 2025
A very detailed, blow by blow description of how US monetary policy has been made from the beginnings. It's often quite interesting but there is almost no data presented to back up the author's conclusions about the impact of the numerous decisions made. A lot of the discussion is about the participant's personal opinions and it does reveal that a great deal of how the markets, journalists and governments respond is based on personal feelings and assumptions - they too seem rarely to rely on data other than how personal fortunes seem to be affected. In the end, the book addresses a rarely examined aspect of economic policy making and left me wondering, given the capriciousness of the current administration where we are headed. Trump has introduced a new element into American fiscal policy - how his family and friends will personally benefit from supposedly national econmic policies - something the book only peripherally touches on since it only goes through some of the Biden term of office.
June 29, 2025
The book was interesting enough as a recent history of the Treasury Department and US monetary policy. It focuses on the more significant events and how they were handled, making a dry subject reasonably diverting. Past concerns about the decline of the US dollar in foreign markets are even more significant today given Trump's trade policies.
However, the writing seemed intended to extend the length of the book as much as possible, frequently repeating the same point over and over. Also, it didn't reveal any previously unknown details as far as I could tell.
With judicious editing the book would have made a nice long-form magazine article.
However, the writing seemed intended to extend the length of the book as much as possible, frequently repeating the same point over and over. Also, it didn't reveal any previously unknown details as far as I could tell.
With judicious editing the book would have made a nice long-form magazine article.
February 26, 2025
I was hoping to learn about the 'weaponization of the dollar' point narrowly (enforcing sanctions basically), but there's only a few chapters on that near the end. More of it is about the Treasury in general and its 'strong dollar' policy historically. On that point I don't really buy the book's main arguments (that the strong dollar contributed to America's financial hegemony, are causally related, that the Treasury's talking points actually mattered, or that the strong dollar meaningfully contributed to 'economic anxiety'), and there isn't much evidence in here to change anyone's mind.
January 16, 2025
Very accessible overview of the strong dollar policy in play by the United States since 1944. Gave me a good introduction to a lot of the reasons behind our current economic and fiscal policy.
Some reviews have felt this book suffered from its focus on the Treasury department and the Secretaries’ role in policy but I found it fascinating and very easy to read.
Some reviews have felt this book suffered from its focus on the Treasury department and the Secretaries’ role in policy but I found it fascinating and very easy to read.
April 27, 2024
Do you want to know how money (the American dollar) influence global economics and policy, then this book is for you. The dollar is widely accepted around the world. Although I appreciate this book, at times it’s was dry and repetitive.
October 1, 2024
This book is a readable tour de force through the history of the United States 1976 - 2024 as told through a biography of the US Dollar as the world's reserve currency. This book is phenomenal at weaving together the stories of the different economic and political events into a unified story.
May 1, 2024
If you are wondering where to look for all the answers about how the dollar runs the world, this is the book. Very well written and well researched. Great book.
August 2, 2024
You knew this book was going to be biased when the first chapter was called, “Surviving Donald Trump”.
August 21, 2024
3.1 rounded down
September 1, 2024
Very interesting history of the political use of the dollar on the world stage.
May 18, 2025
A story about how the US Govt Treasury has used the US Dollar to define America’s role in Geo-Politics and Geo-economics.
June 10, 2025
The book taught me many new things and provided a comprehensive yet concise retelling of how the US dollar has been weaponised. Does the job.
October 19, 2024
Based on the title, I thought I’d love this book. Unfortunately it reads more like a biography of recent Treasury Secretaries rather than the history of dollar weaponization, like its subtitle suggests. If you reframe your expectations (and withstand the author’s cringe-inducing, chapter-long analogy based on American football, a sport she clearly doesn’t understand), this book serves as an informative read for anyone interested in the Treasury Department.
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