What if the U.S. recognizes that they would be the last domino left standing in a cascade of sovereign defaults? Would collapsing the global debt markets lead to hyperdollarization? Is this the only economic wild card the U.S. has up its sleeve to prolong its reign as the dominant global hegemon?

Whether the U.S. is at war with other central banks or not doesn’t change the fact that the country needs a new neutral reserve asset to back the dollar. Creating a global deflationary bust, and weaponizing the dollar is only a short-term play. Scooping up assets on the cheap and weaponizing the dollar will only force dollarization in the short term.

As we transition into the Bretton Woods III era, the Triffin dilemma is finally becoming untenable. The U.S. needs to find something to back the dollar with. I find it unlikely that they will back the dollar with gold. This would be playing into the hands of Russia and China who have far larger gold reserves.

The country is faced with a similar conundrum today but with a different set of variables. They no longer have the option of backing the dollar with oil or gold.

For thousands of years, money has been backed by trust and gold, and protected by ships. However, in this millennium, money will now be backed by encryption and math, and protected by chips.