Turkey is the canary in the coal mine for a $106 trillion global financial system on a headlong collision course with the Donroe Doctrine. For decades, the structural assumption of international finance has been that American sovereign debt and fiat currency were the ultimate safe harbors. But when imperial wars disrupt the global economy’s supply chains, paper promises evaporate. Pushed to the brink by the Trump administration’s miscalculations, sovereign states are being forced to abandon those promises and retreat to material bedrock.
All True. But the severity of consequences, who feels them and how do we fix or replace the systems are all soft problems. They all have solutions, and aren’t any harder than we want to make them.