October 2022 drew a hard line in the sand for UK gilts. Did they shut the stable door after the horse has bolted? Other countries now appear to be heading in the same direction.
Good stuff. I find it funny that the UK shot itself in the head with Brexit and shit like this and America re-elected Donald Trump after he promised to do the same thing with his insane tarriff agenda. We really are your dumber little brother nation. We just hit the 250 year mark too, a fitting time to mark the end of our supremacy on the global stage.
At the core of any reserve currency lies a simple but immovable foundation: credibility. Without it, no amount of military power, economic size, or financial innovation can sustain the trust of international investors. Credibility isn’t just about repaying debt, though that matters; it’s about the belief that the system will hold. That laws won’t change overnight. That institutional processes will work, even in crisis. That political disagreements, however intense, won’t spill over into financial dysfunction. And this trust is not built in a vacuum; it’s deeply intertwined with the web of international relationships that has defined the postwar era. The dollar doesn’t exist as a standalone entity; it operates at the heart of a multilateral world where cross-border flows, trade agreements, and financial cooperation matter. When the global reserve currency begins to reflect a world of growing fragmentation rather than shared norms, the system starts to shift.
Good stuff. I find it funny that the UK shot itself in the head with Brexit and shit like this and America re-elected Donald Trump after he promised to do the same thing with his insane tarriff agenda. We really are your dumber little brother nation. We just hit the 250 year mark too, a fitting time to mark the end of our supremacy on the global stage.
At the core of any reserve currency lies a simple but immovable foundation: credibility. Without it, no amount of military power, economic size, or financial innovation can sustain the trust of international investors. Credibility isn’t just about repaying debt, though that matters; it’s about the belief that the system will hold. That laws won’t change overnight. That institutional processes will work, even in crisis. That political disagreements, however intense, won’t spill over into financial dysfunction. And this trust is not built in a vacuum; it’s deeply intertwined with the web of international relationships that has defined the postwar era. The dollar doesn’t exist as a standalone entity; it operates at the heart of a multilateral world where cross-border flows, trade agreements, and financial cooperation matter. When the global reserve currency begins to reflect a world of growing fragmentation rather than shared norms, the system starts to shift.