Tech Dollar 2: The War of the Worlds and Fate of the Dollar

Reserve currencies since we have understood them have been intertwined with the geopolitics as much as the economics of the system that sustains it. Which is why the incumbent generally converts that economic power to military dominance. When faced with a challenger, the up and coming competitor must unseat and surpass both the economic and militar... See more

In TechDollar 1, I explained that the world was bi-frucating into two systems. The countries that were producing real physical goods, and the tech and financial infrastructure of the world. That this underlying system was going to cause friction as the financial structure is currently set up to absorb real wealth from the productive countries and t... See more

While the tech, tech adjacent, oil and gas, commodities, food (real / hard assets and real production) etc kind of industries and surrounding industries plus the govt will continue to boom, the tech infrastructure will continue to reign supreme worldwide.

The delta between the value of the modern tech infrastructure, and the price they are selling their products at, the USD will remain supreme until this ends. To think of it another way, ask someone how much you would need to pay them to not use a modern smartphone/iPhone. Or ask a business how much they would have to be paid to not use modern weste... See more

The last 40 years have been us trying to convert the world to liberalism(our new incumbent system), to attempt to ensure global peace. The reverse of this will now begin to occur, and many will be very surprised, (especially China and Mid-east) at just how ruthless the west will be in regards to the countries aligned against the America/western sys... See more

As long as this exists, and the tech infrastructure is priced and sold in USD, the USD remains supreme worldwide. This is what is actually still underpinning western global dominance and enabling American power. Not any other reason most people espouse.

Gold historically was the underlying monetary system until recently. Modern tech is by far, more important than gold now, and isn’t essential currently for a reserve system, as tech is much more important to underpin an economic system. Institutions and govts will take tech over gold now .

So as long as the govt is running deficits that it has to monetize in order to pay for, inflation will continue at much higher rates.

While deficits of $1T+ per year, with debt repayments of nearly $1T themselves, people think this is unsustainable short term and will combust. I disagree, there is atleast a 5-10 year runway without the existential crisis, however as I said in TechDollar 1, it will get worse every year, the money printing will exacerbate all the issues internally ... See more