U.S., AN IMMINENT COLLAPSE?

Could the U.S. Actually collapse?

So, continuing from the last blog, ´Is the U.S. Still a Robust Democracy?´, I started wondering how the U.S. collapse could actually happen? And how would the world react the day after the US loses reserve currency status? Oh yes, it is all about the dollar. 💵💸💲

How the U.S. Collapse Could Actually Go Down

Well, well, well. Forget Hollywood explosions. 💥💥 None of that. The real collapse would look more like a heart attack in slow motion.

Phase I: Political Breakdown

Election chaos. ✔️ Disputed results. ✔️ States refusing federal mandates. ✔️ Mass protests. (Not yet.) Maybe a few governors saying “We’ll decide what laws we follow.” ✔️

Supreme Court rulings that look more like political victories than justice. ✔️ Ex, overturning Roe vs. Wade, Loper Bright v. United States that weakened the principle of judicial deference to agency expertise, etc.

What effect would this have? Confidence tanks. Investors get nervous. And the global whispers begin, “Maybe the empire’s dying.” 🪦🪦🪦

Phase II: Fiscal Implosion

Deficits blow past $2 trillion annually. Interest on debt consumes the budget like Pac-Man on crack. No political party can fix it. They don't want to, they’re too busy pointing fingers. Here comes the Fed trying to “fix” it by printing more money. What else is there to do? Anyway, that's how they´ve solved this problem before. The problem is, this time it makes things worse.

Effect: Inflation jumps. Bond yields spike. Rating agencies panic. The “unthinkable” becomes a headline: “China & BRICS Call for End to Dollar Dominance.”

Phase III: Reserve Currency Deathblow

A major country (maybe Saudi, maybe China) sells oil in yuan, euros, or a new BRICS token. Others follow. Suddenly, people don’t need dollars anymore to trade. Global reserves start diversifying away from USD. Cue panic.

Effect: Dollar value drops. Import prices skyrocket. The U.S. loses the ability to export inflation and fund debt cheaply. Translation: no more free ride. Answer: Trump yelling, ¨keep printing them green mofos!!!¨ 🤥🤥💵💸💵🤥

The Day After

Imagine it’s 8:00 AM in Tokyo. I´m drinking my cup of coffee, open my laptop and the first headline I see says, “BREAKING: G20 Confirms End to Dollar-Based Global Reserve System.”

Boom! 💥💥💥

In the U.S.: Markets crash. Panic at banks. Dollar tanks. Inflation hits double digits overnight.

Gasoline is $10, milk is $12, iPhones? Maybe you don’t get one. And eggs? OMG, you wish you could find them at $10 a dozen. 

Middle-class savings? Eaten alive. Retirements? Poof. Washington tries to act tough, but nobody’s lending them money anymore. No one wants to. No friends left out there. Game over.

Meanwhile, the World

Europe: “Oh no! The dollar collapsed! …Anyway, let’s talk about the Euro 2.0.”

The EU, despite its issues, sees this as a historic chance to step up. Germany finally lets the ECB off the leash and go full union mode.

China: “We told you so.” At once it pushes the digital yuan hard as a “stable” alternative, and at least in Asia, it emerges as a financial and diplomatic powerhouse.

BRICS Nations: They throw a party. Launch their own gold-backed or commodity-backed digital currency and at once say, “Let’s settle trade among ourselves. No more Western middlemen.”

Oil Producers: Suddenly, they’re the cool kids again. Whoever controls the new reserve system gets the keys to the next empire.

I know, I know. There is a lot of ´what ifs´ here, but historically, this has happened before, and America is pushing its luck.

Spain (1500s–1600s): Had gold pouring in from the Americas. Spent it on war and castles. Inflation destroyed their economy. Relatively quickly they lost dominance to the Dutch.

The Netherlands (1600s–1700s): They had the most advanced banks and shipping. But war, debt, and bigger competitors took them down.

Britain (1800s–early 1900s): The pound was king during the empire’s height. After two world wars, they were broke. The U.S. dollar replaced the pound after WWII.

In each case, the fall came with denial, then pain, then irrelevance, and a new power rising from the ashes.

This Ain’t Sci-Fi. What we are witnessing is a corrupt government and a spoiled society collapsing right in front of our eyes. The sad thing is that this collapse wouldn’t just be a U.S. tragedy, it would reshape global power for generations. A lot of countries and people are gonna hurt. The warning signs are everywhere, glowing like neon Vegas lights.

So yeah, this so-called ´robust democracy,” maybe it's just gasping it´s last few breaths. 

SO sad. 🥲😭🥲

But wait! What about the Japanese? 🗾🍡🏯 Ah, the Japanese. Well, that's my next blog.

Thanks for reading. Abrazos.

Diego Rojas