In recent times, the United States has found itself at a pivotal crossroads, with President Biden authorizing Tesla magnate Elon Musk to embark on a campaign of revolutionary economic and political reformsThis bold move raises an unsettling question: have we reached a point of deep-seated crisis in the U.S.? If so, where does the root of this crisis lie?

To comprehend the essence of America's crisis, one must first scrutinize the foundation of its empire, which rests on four pillars: technology, military strength, culture, and the dollarHowever, a closer examination reveals that the true linchpin of American hegemony is the dollar itselfThe other components play a supportive role in upholding the dollar’s supremacy, and should it suffer a serious setback, the entire American system could topple.

Now, the pressing question becomes: who poses a threat to the dollar's standing? The unequivocal answer is ChinaIn its bid to curtail China's rise, the U.S. has engaged in a litany of aggressive tactics, including tariff wars, technological battles, and trade frictions—all of which come with significant costsHow does the U.S. afford such a multifaceted struggle? The answer lies in its ability to print moneyThe underlying goal—to preserve the dollar—requires that China be reined inBut in attempting to defeat China by printing more dollars, the U.S. finds itself trapped in a paradox: the more it prints, the harder it becomes to sustain the dollar's valueWithout a clear path to extricate itself from this predicament, the U.S. continues playing a high-stakes game with increasing risks of dollar collapse.

So, how is it that the U.S. can print money to finance its wars? The fundamental reason is that the dollar serves as the world’s reserve currency, accepted globally for trade in commodities like oil and foodThis façade hides the deeper truth: the dollar's real worth stems from America's ability to produce valuable goods

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If the U.S. were unable to generate products of significant value, would oil-exporting countries still choose to deal in dollars? They would possess dollars merely for speculation in American financial markets, which leads to the question of what exactly they can do with those dollars after their investmentThe dollar's value is anchored in U.S. sovereign credit, and without the capability to generate wealth, that credit cannot underpin a stable international currency.

The sense of crisis within the U.S. arises from its diminishing capacity to produce valuable goods, which in turn complicates the maintenance of dollar supremacyThe culprit behind the dollar’s increasingly fragile status is none other than China, which has outpaced American industry, pushing the U.S. out of significant portions of the global supply chainThis has led to a dearth of profitable opportunities for the U.S., intensifying the current dollar crisisWhile U.S. debt figures might not flag as a crisis in the context of GDP, the rapid increase of this debt can be attributed to the relentless printing of money to combat its many battles with ChinaUltimately, the rising U.S. debt is merely symptomatic of a deeper issue, not its root cause.

A glimpse into what the U.S. can still procure with its dollars makes it clear why the dollar's future hangs in the balanceWhile the U.S. enjoys a robust agricultural base and is a powerhouse in oil and natural gas production, the scale of its food supply is minimal, and its energy sector primarily caters to domestic consumptionConsequently, both food and energy play only a negligible role in preserving the dollar's dominanceSo, what allows the U.S. to barely maintain its economic standing today? The answer lies in finance and high technology.

Let's examine the financial sectorThe U.S. banking industry has traditionally thrived on short-term loans versus long-term borrowings, leveraging the plentiful dollar resources available within the economy

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This model, however, is now under siege as the Federal Reserve raises interest rates, bolstering borrowing costs and eroding profitability—a clear prelude to the bank failures we are witnessingBut why is the Fed raising rates? Ultimately, the aim is to preserve the dollar's standingAs U.S. industries dwindle and excess dollars flood in, the risk of inflation looms largeIf inflation rates soar in the U.S., the dollar’s value plummets, further threatening its status as a global currencyThus, the decision to raise interest rates—akin to drinking poison to quench thirst—serves as a desperate measure to stave off economic meltdown.

Turning to high technology, it's evident that this strategic sector is progressively being encroached upon by ChinaThe U.S. now clings to high-end semiconductors and artificial intelligence as its last bastions of strengthThis reliance presents a double-edged sword: while these companies continue to generate substantial profits, facilitating dollar transactions, their inflated valuations also serve to underpin the existing financial market bubblesYet, this high-tech lifebuoy is fraying, with Chinese enterprises increasingly encroaching into American domainsGiants like Huawei, TikTok, and DEEPSEEK are establishing strongholds, leaving the U.S. feeling corneredThe day the protective shield of high technology is finally stripped away will be a day when there will be frenzied dollar sell-offs as investors scramble for safetyThe collapse could be devastating; therefore, the urgency to escape the sinking ship cannot be overstated.

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