sundaymidnight on Nostr: Ever since the dollar stopped being backed by gold, the US made a deal with Saudi ...
Ever since the dollar stopped being backed by gold, the US made a deal with Saudi Arabia: all oil would be sold in dollars. That meant the whole world had to hold dollars, and they could print as many as they wanted, dumping the cost of their spending on everyone else. Since then the dollar has lost 99% of its value: today it is worth barely 1% of what it used to be.
Why did Saudi Arabia agree? In exchange for protection, especially against Iran. They run differently: there religion and state are separate, while in Iran government follows Islamic principles.
Now Iran is putting that promise to the test. If the US fails to defend them, or loses the conflict, Saudi Arabia will stop accepting only dollars. And once that happens, no one will be forced to hold dollars anymore.
The catch is the US debt is already nearly impossible to pay back. Keep the straits blocked for two more months, and it’s over for good. Trying to pay their bills with Iran’s frozen funds would only make it worse: it destroys what little trust remains and speeds up the collapse. A currency works on confidence... and there isn’t any left.
It really is that simple:
- Walk away: they lose the global dollar forever.
- Stay and fight: they drown in debt and lose the global dollar all the same.
There is no good way out. Either road leads to the same end. That is exactly why China is moving to secure the South China Sea and lock in its own trade routes right now.
#Dollar #USA #Economy #Finance #Global
Published at
2026-07-24 15:58:21 CESTEvent JSON
{
"id": "89975e0d70fdb90ac9b6d87468e93e79957a814d044992dc0889a5a2f2fc9dae",
"pubkey": "8dec1a3372c12f307c988e7f7a3571ba3b613804321a58e158be8ec47164b4f8",
"created_at": 1784901501,
"kind": 1,
"tags": [
[
"t",
"Dollar"
],
[
"t",
"USA"
],
[
"t",
"Economy"
],
[
"t",
"Finance"
],
[
"t",
"Global"
],
[
"client",
"Primal Android"
]
],
"content": "Ever since the dollar stopped being backed by gold, the US made a deal with Saudi Arabia: all oil would be sold in dollars. That meant the whole world had to hold dollars, and they could print as many as they wanted, dumping the cost of their spending on everyone else. Since then the dollar has lost 99% of its value: today it is worth barely 1% of what it used to be.\n \nWhy did Saudi Arabia agree? In exchange for protection, especially against Iran. They run differently: there religion and state are separate, while in Iran government follows Islamic principles.\n \nNow Iran is putting that promise to the test. If the US fails to defend them, or loses the conflict, Saudi Arabia will stop accepting only dollars. And once that happens, no one will be forced to hold dollars anymore.\n \nThe catch is the US debt is already nearly impossible to pay back. Keep the straits blocked for two more months, and it’s over for good. Trying to pay their bills with Iran’s frozen funds would only make it worse: it destroys what little trust remains and speeds up the collapse. A currency works on confidence... and there isn’t any left.\n \nIt really is that simple:\n- Walk away: they lose the global dollar forever.\n- Stay and fight: they drown in debt and lose the global dollar all the same.\n\nThere is no good way out. Either road leads to the same end. That is exactly why China is moving to secure the South China Sea and lock in its own trade routes right now.\n\n#Dollar #USA #Economy #Finance #Global\n \n\n",
"sig": "4c4fd98be5419186a0b0ab7536149d866a0657dff7a6531f579f75e9004ee2f3f2f263cd951968f83c6c2f15a431073e78584cd0a615483802dc983498925d21"
}
