Reserve Currency & Boats

Naval power and reserve currency status are connected through geopolitical power, global trade, and financial stability.

Naval power allows a country to secure important trade routes, which are important for trade opportunities.

A reserve currency is used in international trade. If a country’s navy ensures safe and open sea lanes, it’s easier for global trade to be conducted in its country’s currency.

Reserve currency status provides the ability for the government to borrow inexpensively in the market, enabling the financing of projects that might otherwise be beyond it’s grasp. Maintaining the integrity of this reputation requires appropriate leadership, but also credibility which naval power provides.

Historical Reference Points

British Pound Sterling: The British Navy controlled the seas. At the same time, the British pound was the world’s leading reserve currency.

The Dollar: After the second world war, the U.S. Navy became the global maritime leader, coinciding with the rise of the dollar as the world’s dominant reserve currency.

Magellan: Proving the world is not flat. Would you trust the man who first circumnavigated the world?

Amerigo Vespucci: Discovered America so they named it after him.

Do not underestimate boats

Default on Promise

Defaulting on our bond obligations with our international partners is very problematic and would impede our abillity to sell our reserve currency paper to the international community. This is not a good path if we wish the dollar to remain the reserve currency for the world. Losing this status would make it very difficult to run deficits and create many challenges that hopefully our wonderful country will choose to avoid.

The Point

Naval dominance has changed the world for centuries. Nothing has changed.

God bless Freedom. God bless the choice of independent thought. God bless privacy.

God bless my Family.

With sincere love, Zac