So, the US army is, in the end, the ultimate backing for the bond market and the dollar's status.
https://x.com/elmercurioAON/status/2091523155021971546
Translated from Spanish
Trump in other words:
If you don't buy our debt, we'll send the army... If you sell it, we'll do the same.
That comment—and it's not that I like it or am okay with it—is a raw description of how power actually works.
The US didn't become the hegemonic power or sustain the dollar and the world's largest bond market thanks to neoliberalism, rules, treaties, or technocracy.
It got there through force, emerged with a huge advantage from WWII, and with violence, built a world order favorable to them and a couple of allies.
The truth is that markets don't treat an unarmed and pacifist country the same way they treat a nuclear power with global military projection capability.
So, the US army is, in the end, the ultimate backing for the bond market and the dollar's status.
Whoever has the ability to impose or threaten with force is the one who really calls the shots.
And as the US is losing hegemony, it's openly returning to the pursuit of raw power through violence, massive interventions in the economy, and also in the markets.
That includes physically or geopolitically threatening others, whether with action or inaction, including its allies.
The truth is that the global system is crumbling toward a more violent and disorderly world, while the financial order—which isn't autonomous—is being propped up by the US's military capacity.
And when that capacity erodes, the system as we know it erodes too, and Washington is recognizing it and acting accordingly, to see if it can salvage part of its hegemony.
That doesn't mean they'll succeed either, but they'll use whatever power they have left to try.Rate this translation:
posted by Satish Sharma at
06:27
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