The USD, Inflation, and Crypto: The Battle for Global Power
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Welcome Avatar: Since no one reads history we’re going to quickly combine everything from the USD Reserve to Industrialization to Crypto in one quick post.
The History of the Dollar’s Weaponization
The U.S. traded its domestic manufacturing base for weaponizing the dollar as the global reserve currency.
Why? To impose economic control over the world through sanctions.
This isn't a conspiracy. This is economic warfare and it has been playing out for decades. In steps below:
1944: The Dollar Takes the Throne
After WWII, the Bretton Woods Agreement crowned the USD as the global reserve currency, pegged to gold. This gave the U.S. control over global trade and finance. Countries needed dollars to trade internationally, cementing America’s dominance.1971: The Gold Standard Dies
Nixon severed the dollar’s gold link, turning the USD into fiat currency. Instead of gold, trust in U.S. economy and military power backed the dollar. Oil trade was locked in dollars via the Petrodollar System, ensuring the USD remained indispensable for global commerce.
At this point compensation weakened, productivity spiked and asset holders benefit from the increased productivity (stock, real estate etc.) leading to a 50+ year economic boom (of course with its standard recessions in-between, we just print Trillions to fill the hole)
Sanctions as a Weapon
Fast forward to today. The U.S. uses the USD as a weapon. Nations like Iran, Venezuela, and Russia have been cut off from SWIFT, had reserves frozen, or faced economic sanctions that crippled their economies. The dollar is a tool of global control. We export inflation to foreign countries causing a lot of their pain and poverty so the average/median American can live well above the baseline standard of living. This is net good for America of course, bad for foreign countries.The Trade-Off
In exchange for this power, the U.S. gutted its manufacturing base. Jobs and factories were shipped overseas to maintain a strong dollar and keep consumer prices low. This was the deal: Cheap goods and global dominance for America, hollowed-out middle class as a long-term ramification (still moving in that direction)
1970s Example of Implications
After we got off the gold standard the 1970s saw a period of high inflation (some call it Stagflation depending on the time period). When inflation goes up and growth stalls what is the result.
Gold and commodities Did well because less confidence in the US economy and they operated as an inflation hedge (1970s). You could replace Gold with Bitcoin today.
Real estate holds value as a hard asset.
But guess what doesn’t? The average person’s wages and savings. Fiat currencies like the USD lose purchasing power.
Today, we’re facing similar pressures. The Fed is backed into a corner, balancing inflation and economic growth, while nations worldwide are starting to question the dollar’s dominance.
Enter Crypto: The Counter-Weapon
Crypto offers an alternative to this rigged system:
Decentralized and Censorship-Resistant
Unlike the USD, Bitcoin and other cryptos are outside any government’s control. They can’t be sanctioned, frozen, or weaponized. Nations like Russia and Iran are already exploring crypto to bypass the dollar system.Store of Value
The Fed prints trillions, diluting the value of your savings. Bitcoin? Fixed supply. Only 21 million will ever exist. It’s the antithesis of inflationary fiat currencies.A Neutral Reserve Asset
The dollar serves U.S. interests first. Crypto is neutral, accessible to anyone with internet access. Countries adopting Bitcoin (like El Salvador) see it as a way to escape USD dependency.Permissionless Finance
The USD-based global financial system is exclusionary. SWIFT, IMF loans, sanctions—they all reinforce American dominance. Crypto networks are open to everyone, empowering individuals and nations alike.De-Dollarization and the Future
Bitcoin, Ethereum, and other decentralized systems fit perfectly into a future where no single nation controls global trade.
More Realistic Future/Outlook
Considering the growth of things like BASE and USDT... It really shows that 99.9% of people don’t understand the purpose of crypto. This is actually great for the United States because we have more than enough time to further entrench USD as the reserve currency.
Back in 2020? There was real risk that the USA would miss the boat. Now that we have completely clueless people purchasing things like Bitcoin ETFs, there is some -95% reduction in the probability of the USD losing reserve status.
A more likely scenario is crypto backs the USD. The nation will be more than happy to confiscate all those BTC ETF holdings if a real depression/collapse happens just like the gold confiscation in 1933.
The growth of Tether, USDC and other stable coins is the likely path forward. Decades is a long time so no one knows if it’ll still be called USDT or USDC. Maybe ends up being called FedDollar or JPMorganDollar by then.
Stable coins can be frozen. They’ll allow this to be used as the defacto “fiat” unit of account on crypto networks.
TL;DR: Since the USA is finally waking up to weaponizing USDT and further entrenching the dollar as a global trade currency, Americans have much less to worry about. As long as you hold your coins on cold storage in a doomsday scenario of confiscation, you’ll be fine.
The majority have already bought millions of BTC via centralized platforms. The USA no longer views it as a threat (and rightfully so).
Summary
Nothing, NOTHING, will ever pass in the U.S. that threatens the dollar’s role as the ultimate weapon of control. The U.S. weaponized the dollar and traded its manufacturing base for global control. Crypto *was* the counter-weapon—a decentralized, censorship-resistant alternative that challenges the fiat system. However. At this point the US owns an enormous amount of crypto and the more likely scenario is that it further entrenches the dollar.
Great news for crypto coins and America. Bad news for people abroad.
Good luck.
Disclaimer: None of this is to be deemed legal or financial advice of any kind. These are *opinions* written by an anonymous group of Ex-Wall Street Tech Bankers and software engineers who moved into affiliate marketing and e-commerce.
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