The US dollar just fell to its lowest share of world reserves since 1995, and America's oldest allies are now lining up in Beijing. #CulturalPerspective #Dedollarization #USDollar #NATO #Tariffs
"America's oldest allies are going to Beijing. They've abandoned America because America abandoned them. In 2022, after Russia invaded Ukraine, Washington and its allies froze $300 billion of Russia's own money. Freezing a small country's money had happened before. But freezing a major power's money? That sent a clear message. Your money is controlled by America. So, central banks started buying gold and moving money through China's system instead of the dollar. And then America turned on its friends. It put the highest import taxes, tariffs, since the Great Depression on its allies. It threatened to take Greenland from Denmark, a NATO nation. And Trump said he might not even defend NATO. So it's no surprise that today the dollar is at its lowest point of world reserves since 1995, 57%. That's the trap. Because the world holds dollars, which makes it possible for America to borrow cheaply. That cheap money, that's what pays for its military. Fewer dollars in reserves means higher borrowing costs and less money to spend. Less power to project, less power to use. America's power has always been tied to money and trust. And now that the trust is gone, so soon will be the money. Full analysis is free on my sub stack. The link is in the bio."
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The US dollar just fell to its lowest share of world reserves since 1995, and America's oldest allies are now lining up in Beijing. #CulturalPerspective #Dedollarization #USDollar #NATO #Tariffs