The dollar is America’s greatest strength, but also its Achilles heel. Its status as the world’s reserve currency allows the US to borrow vast sums from the rest of the world at ultra-cheap rates. No other currency has this privilege. But there is another type of price to be paid. Access to such easy money means America is vastly in debt. The annual interest payments alone are close to a trillion dollars. Many wonder if the capital, about $38 trillion, can ever be repaid.
The US’s ability to be a superpower and fund its military depends on this cheap borrowing. What happens if the whole system suddenly implodes? The idea used to be thought of as fanciful, but is now being taken more seriously. The US’s threat to invade European territory and annex Canada has made some in those places wonder if they should use their biggest weapon - cutting off the US’s credit card. The blowback would be huge for them too, but as former allies inch closer to war, such things become more likely.
If this happened, would this lead to a rapid reorganisation of the world order? Who would emerge strong or weaker from the wreckage? What would it mean for science, tech, and AI development?
As bad as US debt has gotten since the start of Trump’s first term, in terms of Debt to GDP, the US is 10th worst off. There’s a good chance that the vacuum caused by the US economy contracting rapidly would also send some of those other 9 countries into catastrophic debt crisis. Japan is practically there even without global economic shock waves.
Also worth pointing out that ending the USD as the world reserve currency is a key aspect of Peter Thiel’s technofeudalism playbook. He and his cronies want the money being held by foreign governments so they can gain enough economic power to carve up the US into corporate fiefdoms with the federal government only existing to protect their CEOs. The Greenland/Canada nonsense is likely Miller’s attempt to get us there ASAP.
Much like ‘The Crazy Don’ was before getting elected in his 1st term, I never bothered to of those together, but now, makes a lot more sense, LOL!
I have always told people, people’s lives would crushed if the credit was no longer given.
We would have been out of debt decades ago if our politicians had any accountability. We have been electing geriatric man-children with no accountability instead. We deserve to have our credit card taken away since it is consistently being used irresponsibly by those who want to clean out the owners bank account.
