America's Dollar 'Double Standard’

Have you ever wondered why accusations aimed at India seem to vanish when the U.S. applies the same standards elsewhere? What gives America the moral license to lecture others when it selectively enforces its rules? How can countries like Pakistan, with opaque regimes and deep-rooted economic turmoil, receive massive international loans without global scrutiny — while India faces blame for oil trading choices?

- BY P. MOHAN CHANDRAN

A Tale of Two Economies & Two Yardsticks

In recent years, global scrutiny turned to India when it imported oil from Russia — prompting U.S. officials to claim New Delhi was indirectly funding Russia's invasion of Ukraine. Meanwhile, the U.S. and IMF have approved billions of dollars in loans to Pakistan — a nation plagued by economic instability, militant financing, and unregulated military spending. Yet no similar outcry has emerged calling it financial support for terrorism. Can the world interpret the same action in two radically different ways?

India locks horns with Western criticism for buying sanctioned oil. Pakistan, on the other hand, receives loans while hosting terror outfits. Is it not hypocritical to brand India a violator while praising others who provide tacit shelter for extremist funding?

The Dollar Monopoly & Economic Hegemony

The heart of the issue lies in the U.S. dollar system. Since oil became the predominant global trade commodity paid in dollars, the U.S. has wielded unrivaled financial power. Every major oil transaction — from Saudi Arabia to India — mandatorily passes through the U.S. financial system, trapping other nations in a cycle of exchange rate losses and inflated costs. The result? The U.S. accrues enormous “seigniorage profits” while developing nations subsidize U.S. currency demand — all under the guise of global stability.