The Dollar Throne is Cracking
What happens next could change the U.S. economy and your wealth in ways few are prepared for.
In 2022, the U.S. government froze $300 billion of Russia’s dollar reserves overnight. Just like that, money that once felt like security became a weapon.
Other nations were watching.
From Beijing to Brasília, central banks didn’t argue. They acted. Quietly, steadily, and with conviction, they began dumping U.S. Treasuries.
They started moving into something older, harder, and untouchable by any foreign sanction.
They chose gold.
And now, something historic has happened that most people haven’t even heard about yet.
For the first time since 1996, foreign central banks now hold more value in gold than in U.S. Treasuries.
This isn’t some trivial data point.
It’s the financial equivalent of a changing of the guard.
And it's not a theory or a forecast. It's already here.
America’s "Easy Money Era" Just Ended
For generations, the dollar sat unchallenged at the top.
The world trusted it.
Treasuries were seen as risk-free. And the global economy revolved around the greenback.
But trust only lasts as long as the system feels fair.
When the U.S. turned the dollar into a political weapon, other countries realized something they could no longer ignore.
If it happened to Russia, it could happen to them.
So they started moving. Not with speeches, but with vault deliveries.
In 2014, over 30% of global reserves were held in Treasuries. Today, that number has dropped into the low 20s.
Meanwhile, gold reserves have surged to nearly 27% of global holdings.
That’s not an adjustment. That’s a shift in worldview.
Central banks have stacked more than $4.5 trillion in gold.
They've slowed new Treasury purchases to a crawl.
Some are now adding gold every month without fail.
China alone has increased its gold reserves for 11 straight months. Nations like Turkey, Poland, and Singapore are buying at record levels.
Why?
Because gold cannot be frozen, defaulted on, or devalued by a foreign central bank.
In a world where alliances are fragile and debt is everywhere, owning gold is the clearest statement of financial independence.
The Consequences Are No Longer Coming. They’ve Arrived.
This isn’t some distant macro trend playing out over decades.
It’s happening right now, and it’s hitting home.
For years, foreign buyers of U.S. debt kept interest rates low. That allowed America to borrow with ease, to spend beyond its means, and to avoid real consequences.
But as those buyers disappear, the math is catching up.
The 10-year Treasury yield has climbed from just 1% in 2020 to over 4.6% in 2024.
The government spent $1.2 trillion just on interest in 2025.
That’s now more than 3% of U.S. GDP, and it’s still rising.
The era of cheap money is gone. And what replaced it is a harsh new reality where America has to pay a premium to keep borrowing.
Which means higher mortgage rates, more expensive car loans, tighter budgets, and an economy with less room to breathe.
The Dollar Still Rules. But It’s Not Feared Like It Once Was.
Yes, the dollar remains dominant for now.
It’s used in 88% of global forex trades. It still makes up more than half of global foreign exchange reserves.
But here’s what matters. That dominance is shrinking.
Two decades ago, the dollar made up over 70% of reserves. Today, it sits around 58%. The decline is slow, but it is consistent—and it’s accelerating.
And for the first time in our lifetimes, the world is building real alternatives.
China is expanding the use of the yuan for trade and settlements.
Russia has turned almost entirely to gold and yuan in international payments.
BRICS countries are exploring new reserve structures, including currencies tied to hard commodities.
Digital payment networks are emerging outside of SWIFT, with new rails built for a world that doesn’t rely on U.S. oversight.
The message is clear: Countries want out.
They don’t want to be dependent on a system that can freeze their money or punish them with the flip of a switch.
And they’re not asking for permission.
America’s Greatest Weapon May Be Turning Into Its Biggest Liability
If the dollar is no longer trusted… if Treasuries no longer represent safety… and if the global economy begins to function without needing as many dollars...
Then the U.S. has a problem that can't be fixed with one more stimulus package.
This isn’t just a monetary issue. It’s a strategic threat.
Because the moment other countries stop needing dollars, they stop needing to fund America’s lifestyle.
That leaves the Federal Reserve holding the bag.
And when the Fed steps in to fill the gap, it often turns to the oldest trick in the book: printing more money.
Which means more inflation. A weaker dollar. And declining purchasing power for every person who didn’t see it coming.
This Is Not a Temporary Headwind. It’s a New Weather System.
Some will say this is all just part of the cycle. That the dollar always comes back.
But this time looks different.
Credit rating agencies have issued warnings and even downgraded U.S. debt.
America’s political dysfunction is scaring allies and emboldening rivals.
And there is no serious plan to control a $37 trillion debt bomb.
You can’t just wave this away with optimism.
Even the Federal Reserve itself has acknowledged that gold is rising in central bank portfolios, while Treasuries are stagnating.
And this is with inflation still high and trust in government still fragile.
So no, this isn’t a temporary adjustment. It’s a long-overdue reckoning.
Here’s What to Do Right Now Before This Trend Goes Mainstream
If you wait for a headline that says, “The dollar just lost its throne,” it’ll already be too late.
The move is already underway.
So here’s how to think like a central bank, and protect your wealth accordingly.
Add real assets to your portfolio. Gold, silver, and select commodities are rising for a reason.
Diversify your currency exposure. Don’t keep your future locked to a single system.
Make smart asymmetric bets. Use small positions with massive upside potential. That’s how you build wealth in a world where the old rules are breaking down.
Stay focused on what central banks are doing. Not what the media is saying.
Because the central banks of the world aren’t tweeting. They’re stacking.
And when the people who control the game start playing it differently, it pays to pay attention.
They Haven’t Buried the Dollar Yet. But the Shovels Are Out.
Don’t get me wrong, as I said before, the dollar still sits on the throne, but the world is already preparing for life after its reign.
The future won’t be announced. It will arrive quietly, disguised as data points most people won’t understand until it's far too late.
The ones who win will be those who move before the headlines catch up.
So ask yourself:
Will you sit still and hope? Or will you take the steps now to protect what you've built, and position for what’s coming?
Because the next financial chapter is already being written.
Stay Sharp,
Gideon Ashwood