Game Theory #27: Putin Enters the Chat

The global geopolitical landscape is shifting as Russia and China attempt to challenge the US dollar’s status as the world’s reserve currency. While Russia and China maintain a strategic partnership, their cooperation remains constrained by the Chinese elite's dependence on US dollar-denominated assets and Western financial systems. Putin’s grand strategy centers on destabilizing the US-led order by fostering volatility in Iran, North Korea, and Europe, aiming to force a global withdrawal from the dollar. This system, established post-World War II, forces the United States into a cycle of unsustainable debt and military overextension to maintain currency demand. Ultimately, the US faces a structural crisis where the domestic consequences of defaulting on debt—which would trigger a revolution—compel the nation to maintain its global hegemony through conflict, despite the long-term economic instability this addiction creates.