Reinvent the dollar

Imagine: the US national debt has skyrocketed past a staggering $36 trillion – a burden that translates to $275,000 for every American taxpayer. Imagine: the US national debt is exploding at an unsustainable pace: $7 billion every single day, $300 million every hour, and a jaw-dropping $5 million every minute. Imagine: unfunded government obligations have reached an additional $75 trillion.

Yes, this year alone, the US Treasury would have to roll-over $10 to $14 trillion in maturing short-term debt. Lo and behold, that’s not all – the US government must also borrow even more to fund its annual budget deficit, which is on track to blow past $2 trillion. Yes, the numbers are staggering, the pace is relentless, and the implications are clear: America’s debt crisis is accelerating, and the clock is ticking.

At 9:04am on September 2, 1945 – exactly 28,966 days ago – World War II in the Pacific Theater came to an end as Japan formally surrendered aboard the USS Missouri in Tokyo Bay. Yes, at that moment in history, the US national debt stood at a mere $260 billion.

Now, brace yourself: in the 28,966 days since, the US Treasury has raised an astonishing $35.74 trillion. Yes, trillion. Let’s not forget where the seeds of this epic financial journey were sown: a loud and resounding round of applause for the Bretton Woods Conference, where the Bretton Woods Agreement was signed at the Mount Washington Hotel in New Hampshire. That moment reshaped the global economic order and set the stage for a debt spiral, unlike anything the world has ever seen.

At 9:04am on September 2, 1945 – exactly 28,966 days ago – a sum of $2,800 could buy a staggering 80 troy ounces of gold. Fast forward to today, and that same $2,800 buys a single ounce of the precious metal. This collapse in the dollar’s purchasing power must serve as a glaring testament to the relentless debasement of the US dollar, driven by 28,966 days of the US Treasury’s reckless monetary policies and 28,966 days of the US government’s unchecked spending.

Lo and behold, the US government’s spending juggernaut shows no signs of slowing down. Brace yourself once again: a staggering $2 trillion every year vanishes into Medicare, another $1.5 trillion into Social Security, $1 trillion just to pay interest on the national debt, and a colossal $954 billion fuels defence and endless wars. Yes, the numbers are mind-numbing. Yes, the bill keeps growing. Let’s see how Elon Musk shaves $2 trillion off this mountain of spending.

Yes, the world is now waking up to the dollar's massive debasement. Yes, China and Russia are cutting dollar holdings. Yes, India, Russia and China are shifting to gold. Yes, foreign investors, wary of multi-trillion dollar deficits and endless borrowing, are pulling back on US Treasuries.

Enter the maverick Donald Trump, decisively embracing the ‘digital pivot.’ On July 27, 2024, at 3pm, he unveiled an ambitious vision: to transform the US into the “crypto capital of the planet.” His strategy revolves around leveraging stablecoins, RLUSD, XRP, Ripple, and other digital assets pegged to the US dollar. By monopolising these emerging technologies, Trump envisions exporting a digital dollar, thereby cementing perpetual global demand for the greenback. Trump is reinventing the dollar’s role in an evolving financial landscape. Voila – the US dollar stays the dominant reserve currency, and America’s borrowing spree continues unabated. Hallelujah!

The writer is a columnist based in Islamabad. He tweets/posts @saleemfarrukh and can be reached at: farrukh15@hotmail.com