There are plenty of comments about the death of the US dollar as the world’s reserve currency. These tend to appear when the dollar index declines. However, these “dollar death” reports are greatly exaggerated and fail to answer a simple question: What is the alternative?

If you want to bet on the euro as a global reserve currency ahead of the imposition of the digital euro, which will obliterate all limits to central bank surveillance and excess, be my guest.

Furthermore, the enormous military spending and public expenditure plans that have been announced in 2025 add to the giant committed unfunded liabilities of member states, moving from 350% in the case of Germany to 500% of GDP in the case of Spain.

In the past six months, a chorus of analysts and commentators warned of an impending collapse of the US economy. Many predicted that persistent inflation, high interest rates, and ballooning government deficits would drag growth to a halt and trigger a recession.

However, the data tell a different story: the United States demonstrates economic strength, fiscal control, and improving inflation expectations.

Why Can’t Trump Apply the “Chainsaw” Like Milei? A Detailed Analysis

In recent months, many libertarians have criticised Donald Trump’s economic policies, arguing that he is not implementing drastic public spending cuts like Javier Milei has done in Argentina.

However, this comparison ignores key structural and contextual differences between the two countries and their governments. Below is a detailed explanation of why the situation in the United States under Trump is different from that of Argentina under Milei and why criticisms of Trump’s strategy are unfounded.

Three things have happened in the past three months that are best understood together.

The International Atomic Energy Agency issued a historic resolution against Iran for violating its commitment to nuclear non-proliferation.

Additionally, OPEC+ agreed to increase production threefold despite weak global oil demand growth, reaching the equivalent of the entirety of Iran’s exports in immediately available excess capacity, looking to offset any disruption in global oil markets from any conflict with Iran. 

Furthermore, several Sunni neighbouring nations have reached historic agreements with the United States and allow Israeli and American aircraft to fly over their airspace and use their bases.

OPEC+’s decision to offset the risk of disruption in Iran’s exports has two clear objectives: strengthen Saudi Arabia’s position as the global central bank of oil and limit any damage to China’s oil supply. China buys 90% of Iran’s oil exports.