Trump: losing world reserve currency would be worse than losing a major war, we wouldn't be the same country anymore
https://x.com/ekwufinance/status/2081368630898376753
Trump: losing world reserve currency would be worse than losing a major war, we wouldn't be the same country anymore
And yet, it looks like the US is losing both... a major dollar and the world reserve currency
- It has suffered a humiliating defeat against Iran
- Is about to lose the petrodollar
The petrodollar system only works as long as the US can enforce it... militarily and politically. That was always the deal. Security in exchange for oil being sold in USD and surpluses being recycled into US assets.
The GCC are quickly realizing that they got a target on their back instead of security. When this war is over, there won't be any US military presence left in the region.
The GCC countries will look for new alliances and make new deals... multipolarity sets in
That’s exactly what we are seeing now.
- The UAE establishing an integrated cross-border payment system with China
- yuan foreign bond issuance is surging up ~70% in H1 2026
- Iran demanding yuan for Hormuz transit
Step by step, settlement moves away from USD.
Less dollar demand -> less recycling into Treasuries -> higher yields -> more pressure on the system
https://x.com/ekwufinance/status/2081368630898376753
posted by Satish Sharma at
16:29
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