The Dollar As Global Reserve Currency is Wobbling Precariously

World Economic Forum:  “Central banks are diversifying their currency reserves, and the development of alternative payment corridors that reduce dependencies on the US dollar are expanding.  Recent analysis by the World Economic Forum estimates that heightened fragmentation could reduce global GDP by up to $5.7 trillion, while also stoking inflation.”

As the Global Reserve Currency, the dollar dominance is directly correlated to perceived safety and security of the government, and the economy in relation to other dominant economies.  Alternative currencies at this stage are not a threat, however, Trump’s Tariffs and Warring have created a wobble.  A wobble in earth’s rotation creates fragmentation, a wobble in the global financial system can create a collapse. 

The wobble began when the Trump Tariffs were announced fracturing global trade and causing China’s yuan to gain some dominance.  While Bitcoin isn’t tied to a country or government, it too gained traction in 2025 in response to Trump’s rhetoric and escalating flip-flops leading to his now rather psychotic behavior.  Trump’s posturing on Iran gave even more traction to China and the wobbling became more frenetic.  The US market is not an indicater of much of anything any longer, as finances are shared between BlackRock, Vanguard and State Street.  Leaving the stage empty except for a single podium and a monologue of pitiful LIES.  Anyone…. Anyone…?

The only country with the courage to mock this hideous Play and give it an F Rating, has been Iran.  The three countries hedging against the dollar include China, Russia and Turkey who have been steadily buying gold in anticipation of a dollar and/or America collapse.  Since 1970, the dollar as a global foreign exchange reserve had dropped by a third before the policies of Trump and the War. 

IF gold became the new reserve currency, America would be forced to reveal the contents of Fort Knox.  The last audit was around 1974 and was considered rather inane given it was simply an invitation for some congressional members to view the vaults.  The last full audit was in 1953 under Eisenhower.  If in fact the vaults are severely depleted as many believe, should gold become the new reserve currency, America is farked.  In July 2025, France requested the return of its $15 billion gold reserves from the US.  It took until January 2026 for the US to comply.

If the dollar lost its place on the throne, America would likely face significantly higher borrowing costs, forcing a choice between tax hikes, debt restructuring, or severe austerity measures.  True inflation would be catastrophic.  As everything that was – is no longer, and the shroud of lies would be forced to speak truth.  A tumbling instead of a wobble.  Something like the collapse of the Soviet Union.   One rather interesting shift would be the removal of economic sanctions with which the US is so gloriously generous.

Currently, over 30 countries and 13,000 individuals are sanctioned by America.  In addition, some 500 entities are sanctioned for human rights offenses and abuses.  That leverage would disappear.  Spain has become the latest country to be expelled from trade by Trump.  These sanctions ride piggy-back on who is holding the golden rod of Global Reserve Currency. 

In 1944 The Bretton Woods system was adopted in which America was appointed the holder of the global currency status because the US controlled two thirds of the global gold.  In 1971, Nixon ended the convertibility of the US dollar to gold and effectively ended the Bretton Woods Agreement.  Thus, the dollar was now simple fiat currency – it’s only backing a pinky swear promise creating floating exchange rates.   Nixon instituted this fiat system to halt a run on U.S. gold reserves by foreign nations, combat inflation, and prevent economic collapse. Massive foreign debt, trade deficits, and high costs from the Vietnam War had crumbled America’s economy.

At the time of Nixon’s decision, the US debt to GDP was 35%, and the DoD budget was $72 billion.  Today the debt to GDP is 125% and likely to grow significantly as the Iran War costs, Venezuela conflict costs, Israeli military costs, and tariffs blow the economy apart, while the Dod Budget is well over $1 Trillion.  Adjusted for inflation, the 1971 Dod $72 Billion budget would be worth roughly $590 Billion or about half the true budget imposed today.

Statistically the numbers are completely out of whack!  Today 60% of the global gold (assuming America isn’t lying) is held by the US, Germany, France, Russia, China, Japan, and Italy.  Not only has the US lost its ranking in GDP and DoD Spending, it no longer has the right to exalt holding 66% of the world’s gold for which status as the ‘Global Currency Reserve’ was framed.  Thus, we are listing heavily on perceptions, illusions, and crystal ball estimations.

BRICS accelerated the use of alternate currencies as did the era of Bitcoin et al.  The Iran war will further this evolution and central banks will sell off treasuries to balance their portfolio risks.  China, Brazil, India, Japan, Sweden and Denmark are selling treasuries while increasing their holding in gold.  The slow reorganization of world powers is gaining significant traction.  IF Trump was pro-America, this would be his focus.  Instead, Trump is literally doing the exact opposite …

Trump in Saudi Arabia vs the Three Stooges in Ukraine

Three world leaders are filmed on a train attempting to hide their ‘paraphernalia’ while looking like giggling teenage boys caught with a Playboy magazine.  An indelible image imprint.  The fact that they are on their way to meet with Zelenskky, a known cocaine addict, is not lost on the audience.  It is also not lost on other global leaders who see their recreation activities override their leadership qualities.  Deserving of an award from the Three Stooges, Hairy, Curly and Mo, they bring a certain level of absurdity to themselves and the EU as a nation.

Contrast that scene to Trump arriving in Saudi Arabia, and there is a monumental subterranean shift.  All business.  Making Deals – $600 Billion worth.  And the Deals are for America – not for the slapstick antics of Hairy, Curly and Mo, all of whom have brought their respective countries to their knees economically and socially.  Bin Salman recognizes the impact Trump can have to turn around this global coup. Respect is mutually shared.

The aftermath of this sad sack comedy routine is affecting the entire EU.  The EU thus does what it does best – ignore and distract.  The distraction?  The Cannes Film Festival and Hollywood celebrities dominate their news. 

The Three Stooges went to Ukraine for what purpose?  To reinforce the thirty day ceasefire rule for Zelenskky in his upcoming negotiations with Putin?  A phone call would have sufficed.  Thirty days buys weapons and troops.  IF Zelenskky doesn’t comply with instructions – the guillotine is his fate.  Everyone knows the game plan but they have to make a show of the entire process for media rights to the story.

On the global stage, Zelenskky’s threat to blow up the various world leaders at the Moscow Day of Celebration also put a noose around his neck.  Given he was unable to hold to a three day ceasefire, his antics are becoming more sloppy putting everyone on notice, strings are getting tighter. 

Who holds the Stooges strings?    

The European defense industry encompasses 2,764 businesses generating EUR 162 billion in annual sales and employing 1.8 million people.   Major contractors include BAE Systems – UK, Dessault and Thales – France, and Leonardo – Italy.  A significant dependence for all these countries exists via US sourcing.  Given Starmer and Macron keep over-playing their troop deployments as a potential to assist Ukraine – getting thousands into Ukraine could only be achieved if the corridor is clear.  Ceasefire.

The other loser in this Saudi turnaround is Netanyahu.  The Keeper Of The Blackmail.  The come-about from Israel could be related to the Epstein Files and the utter disgust Trump holds for child predators.  Let the blackmail fly.  Desperation and mass genocide has left Israel with few allies if any.   It also puts the Zion Congressional Handlers on notice – as well as AIPAC which is likely in scramble-defense mode. 

Taking Israel out of the US equation and realigning the board players could help secure a completely different Congress.  But the cosmic shift happening outside of the western world is also in play.   Meaning a singular entity, like America, being labeled the global powerhouse, is no longer in vogue.  Instead, the BRICS play is now being matched by a China Gold play.  The gold play has two interesting agendas;  1.  It forces the US and EU to open their Fort Knox facilities,  and 2.  It dissipates the hegemony of the Dollar in trade which right now would reduce interest payments on debt – held primarily by Japan.

Trading in gold instead of dollars is an interesting study of positives and negatives.  The largest  mines producing today are in Russia, Australia, South Africa, Peru, Indonesia, Uzbekistan and the US.  But in December 2024, China discovered a deposit that is considered the largest deposit in the world valued at $83 billion.  Once again, the EU is left behind.  Which solidifies the shift of trade as the shift of politics.  As President Trump announced from the Economic Forum in the Saudi Kingdom – prosperity is the motivation instead of coups, chaos and interference. 

In a momentous gesture, because Boeing has been unable to complete the new Air Force One as ordered years ago, Qatar has offered to gift the US a replacement valued at over $400 million.  Oddly, the democrats find issue with this gift despite it being a gift to the US not Trump.  Air Force One is owned by the US AirForce.  It was New Deal’s Marxist FDR who first instituted a Presidential Pilot Office, via The Presidential Airlift Group.

But then the democrats number one focus at this juncture is to support the murderers and gangland convicts arrested by ICE while assaulting ICE Officers.  A huge embarrassment on a world stage.  But that’s all they’ve got left to fight for as their antics and respect have descended into Hell.  That would be the entirety of their platform which may result in the death of the Democrat Party.    Running on EMPTY.