Lyn is right, but the US administration does not tell the Americans the truth. So they blame it on the others, Chinese and Europeans and unfair tariffs. De-industrialization and structural deficits are the price the US pays to be able to run the “empire” and pay for the “forever wars” without destroying the purchasing power of the dollar in relation to other currencies. This was the US “exorbitant privilege”. This was based on the Petrodollar recycling system. This is over now.
Trump knows that and he is trying to save the fading hegemon from collapse by playing the last cards in a new game few have really understood:
- he tells the Chinese to take their money and leave
- he uses tariff threats to try to bring back home some critical strategic productions
- since all this damages global dollar flows, which is incompatible with dollar hegemony, he needs to create an alternative to the Petrodollar system to support US debt and force global dollar flows back into US Treasuries. And this can only be achieved by using a neutral reserve asset globally denominated in dollars because China, India, Russia and most of the global south will stay away from US Debt and US assets. The neutral reserve asset is #bitcoin and Trump will force stablecoin issuers to buy US Tbills and continue financing US deficit spending. To make this a functioning virtuous loop the US will need to push up #bitcoin prices which will attract more dollars into #tether which will flow into Tbills. This is the birth of the #bitcoindollar system. Beware that gold cannot be used in this case because only stablecoins issuers are able to channel dollar flows into US debt. This is the critical point.
bitcoindollar / BitcoindollarBook
npub169…ezvre
2025-04-10 13:18:50
in reply to nevent1q…fwdy
Author Public Key
npub169n89y74lvvpcy8u5n2mhqe6t5s5yj9guf7tl9x7kkv4qwywwqzq9ezvrePublished at
2025-04-10 13:18:50Event JSON
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"content": "Lyn is right, but the US administration does not tell the Americans the truth. So they blame it on the others, Chinese and Europeans and unfair tariffs. De-industrialization and structural deficits are the price the US pays to be able to run the “empire” and pay for the “forever wars” without destroying the purchasing power of the dollar in relation to other currencies. This was the US “exorbitant privilege”. This was based on the Petrodollar recycling system. This is over now. \nTrump knows that and he is trying to save the fading hegemon from collapse by playing the last cards in a new game few have really understood:\n- he tells the Chinese to take their money and leave\n- he uses tariff threats to try to bring back home some critical strategic productions\n- since all this damages global dollar flows, which is incompatible with dollar hegemony, he needs to create an alternative to the Petrodollar system to support US debt and force global dollar flows back into US Treasuries. And this can only be achieved by using a neutral reserve asset globally denominated in dollars because China, India, Russia and most of the global south will stay away from US Debt and US assets. The neutral reserve asset is #bitcoin and Trump will force stablecoin issuers to buy US Tbills and continue financing US deficit spending. To make this a functioning virtuous loop the US will need to push up #bitcoin prices which will attract more dollars into #tether which will flow into Tbills. This is the birth of the #bitcoindollar system. Beware that gold cannot be used in this case because only stablecoins issuers are able to channel dollar flows into US debt. This is the critical point.\n",
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