When I Say “Dumb Money,” Do You Get It Now?
A reserve currency isn’t defined by ideology, gold backing, or speeches about multipolarity. It’s defined by what the system runs toward under stress.
When volatility rises, VAR gets hit, leverage comes down, and everyone—regardless of geography or politics—needs the same thing: settlement certainty.
The USD is where liquidation proceeds park because it is the deepest, fastest, least conditional sink in the global system.
That feedback loop is self-reinforcing.
The dollar is liquid because it’s used in stress; it’s used in stress because it’s liquid. Reserve status isn’t declared—it’s revealed every time the system de-risks.