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You’re Running Out Of Time To Escape The Dollar
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Central banks are moving away from the U.S. dollar… The U.S. dollar creates wealth by facilitating global trade… Trump’s tariffs are going to hurt that system… If the dollar fails, gold and Bitcoin will rise… We’re headed to a new version of 1929… Prime Day sales surge… |
Table of Contents
The sovereign debt bubble will not grow forever.
Sooner or later, there will be a massive shift away from the U.S. dollar, which now serves as the foundation of the world’s financial system. This shift will lead to the collapse of the entire paper money system all around the world.
Today, countries use the U.S. dollar to settle trade accounts. Most large businesses keep their treasury in dollars. Around the world, most central banks keep their reserves in dollars. That’s one reason the demand for dollar-backed stablecoin is so large: everyone is willing to accept the risk of owning dollars.
This system has incredible benefits because it enables global trade, which enables the full expression of economics’ greatest miracle: comparative advantage – which essentially is a country or business’s ability to produce something at a lower cost than another country or business can.
But the entire system faces one massive risk: the U.S. currency has zero intrinsic value.
There is no “proof of work” that underlies the dollar. There is no quantifiable, intrinsic value for the U.S. dollar that is independent of the government.
When the U.S. Treasury defaults – and it will default, there is no way it’s going to repay $37 trillion – that won’t change the amount of work that’s required to mint a Bitcoin or an ounce of gold. But it will render the exchange value of the dollar virtually worthless.
Thus, this system only works because people, all around the world, trust us.
And they shouldn’t.