For decades, the petrodollar system quietly underpinned American economic power. Most people never thought about it. They didn't need to.

Now the cracks are getting harder to ignore.

The recent U.S.-Israeli war with Iran was supposed to weaken Tehran. Instead, it reminded the world of a simple reality: Iran controls one side of the Strait of Hormuz. After disrupting traffic through the chokepoint, Tehran is now charging yuan-denominated transit tolls on tankers that pass through. China is building alternative payment rails. BRICS keeps expanding. And the dollar's share of global foreign-exchange reserves has fallen to its lowest level in decades.

Now, this doesn't mean the dollar is about to disappear. But it does mean the system that financed Washington's deficits and projected U.S. government power around the world is coming apart at the seams.

America's ruling elites see the same thing.