Family Update
Our middle son, Alex, had a big weekend. His team from Cardinal Mooney made it to the Division II-A state championship. They played a school from Jacksonville. Why did both teams have to drive all the way to Miami? They won 52 to 27. Alex had a blast, even if he rolled in at 3:30 in the morning. The school apparently expected the kids to show up the next day. We kept him home, and he’s probably still asleep as you read this.
And then there’s Jesse, our youngest, who has developed a deep and slightly alarming love for Bagel Bites. If you’ve never encountered these things, they’re tiny bagel slices covered in tomato sauce, cheese, and pepperoni, frozen solid, and I’m convinced not one ingredient is found in nature. I checked the freezer the other day and realized he had eaten two full boxes. That is 48 Bagel Bites. Forty-eight.
The lanai extension is moving at a snail’s pace. I signed the contract three months ago, and they told me it would take three months. Meanwhile, contractors occupy this magical universe where you hand them a pile of money, and then they get to work whenever the stars align. They hold all the cards, and we just sit here hoping they remember we exist.
We finally put a cover on the couch that they delivered in the wrong color. The pets took one look at it and are already plotting its destruction.
What Is a Reserve Currency — and Why It Matters
Every so often, you’ll hear the term “reserve currency” tossed around on the news. Most people smile and nod while quietly thinking, I have no clue what that means. So here’s the plain-English version.
A reserve currency is the money the rest of the world uses to do business. When countries trade with each other—oil, wheat, technology—they almost always use U.S. dollars. If Venezuela sells oil to Uruguay, it pays in dollars. If Ireland sells potatoes to Italy, they pay in dollars. And when governments save for emergencies, they hold U.S. Treasuries.
In other words, the global system runs on dollars.
How Did America Get This Role?
After World War II, the U.S. had the strongest, most stable economy. Our financial markets were reliable, and our government was trusted. That made the dollar the obvious choice. Before us, the British pound held the spot. Before that, the Dutch. It can change, but only after a major world upheaval.
Why Being the Reserve Currency Is Such a Big Advantage
The country with the reserve currency gets benefits no one else gets:
• We can borrow at lower interest rates.
• Our money stays strong because the whole world needs it.
• And yes, in a crisis, we can print money without the economy collapsing overnight.
Other countries don’t have that luxury. If they print money, it is still pegged to the dollars, and they get runaway inflation. Their only tool is to raise interest rates and hope their currency survives. It's almost not fair. The U.S. has a MASSIVE advantage in the global economy. MASSIVE. It is the number one most powerful economic factor we have going for us.
Could the Dollar Lose This Status?
Anything is possible, but it would be extremely hard. Another country would need:
• A huge, stable economy
• Trustworthy financial markets
• Political stability
• Rule of law
• And global confidence for decades
Another huge reason the dollar stays dominant is the strength of the U.S. military. Our navy keeps the world’s shipping lanes open and safe. If the United States stopped protecting global trade routes, international trade would fall into chaos. No other country can step in and do that job.
Right now, no other country comes even close to checking those boxes. China wants the job, but the world doesn’t trust its government. Europe is too divided. Russia is unstable.
So yes, the headlines shout about “dollar collapse,” but the reality is far calmer: the dollar is deeply entrenched, and it’s very hard to replace.
Be Blessed,
Dave