Dollar Club: Weaponization of the Dollar Has Some People Wanting Out -

The U.S. government has weaponized the dollar as a foreign policy billy club. This might be good foreign policy, but it carries some significant economic risk.
In this episode of the Midweek Memo podcast, Mike Maharrey explains how the U.S. has weaponized its currency and the world's response, highlighting the accelerating pace of de-dollarization and what it could mean for the U.S. economy. 
This week, Mike also shares a story underscoring the durability of silver money.
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Mike opens the show with a hypothetical scenario.
<blockquote>
"If you were standing on a big rug and some people grabbed one end and threatened to pull it out from under you, what would you do?
"You’d probably get off the rug, right? You might even get the rug out of the room so they couldn’t catch you off guard. 
</blockquote>
This is exactly what a lot of countries are doing when it comes to the dollar. They know the US could pull the dollar rug out from under them, so they’re getting the heck off that dollar rug!"
Mike notes that he hangs out with a lot of Canadians. 
<blockquote>
"It comes with being a hockey player. I generally like them. They tend to be friendly, laid-back people. But I’ve never really been particularly concerned about their political opinions or what they think about US policy. It’s like the little kid who lived next door to us when I was growing up. He was about five years younger than I. I was more than happy to throw a football around with him in the backyard, but I wasn’t about to ask his advice about girls or to help me with my homework. His opinions on those subjects were irrelevant to me.
"But let’s say, hypothetically, I had a crush on his sister. I did not, but stay with me here. I’m making a point. If he had a sister that I liked, it would have behooved me to listen to what he had to say on the subject. After all, he would have had information that could impact my life. When someone says something relevant, it’s wise to listen, even if you don’t generally care about their opinion or even respect what they have to say. 
"I say all of that because the Canadian prime minister had some things to say about the dollar, and we might be wise to listen."
</blockquote>
Mike sets up the prime minister's comments with context, pointing out that the 10-year Treasury yield hit its highest level since 2007 last week and remains at elevated levels. 
<blockquote>
"That’s a problem when you have $40 trillion in debt. Interest gets expensive fast when interest rates are climbing. The US is already paying more than $1 trillion per year on interest expense. Interest is the second-biggest spending category for the US government right now. It costs more than national defense. It costs more than Medicare. The only thing more expensive is Social Security. It’s gotten so bad that the Treasury Department is buying back long-term bonds in an effort to drive yields a little lower. By the way, it’s not working."
</blockquote>
So, why are Treasuries selling off?
Mike says Canadian Prime Minister Mark Carney is telling us if we choose to listen. 
Carney says the world needs to find an alternative to the US dollar.
<blockquote>
"Now, you might not care what Canadians think. You might think Carney is the son of a silly person. Nevertheless, the head of a neighboring country that has traditionally been a close U.S. ally just called for the world to dump the dollar or at least minimize its role as the global reserve. 
"And a lot of people are out there nodding in agreement.
"That’s why so many <a href="https://www.moneymetals.com/news/2026/09/03/central-banks-piled-in-more-gold-in-july-005182">central banks are buying gold</a> and shedding U.S. Treasuries."
</blockquote>
Mike explains that the mainstream calls this dollar selloff "<a href="https://www.moneymetals.com/news/2026/07/28/with-bonds-struggling-investors-turning-to-tangible-assets-like-gold-005096">the debasement trade</a>."
<blockquote>
"It is an investment strategy emphasizing holding tangible assets such as gold, silver, and other commodities to protect against the decline of fiat currencies caused by monetary debasement."
</blockquote>
Mike points out two primary drivers behind the debasement trade. 
<ol>
<li>The Debt Black Hole</li>
<li>The weaponization of the dollar</li>
</ol>
Having talked extensively about the debt black hole over the last several months, Mike turns his attention to the weaponization of the dollar, noting that this seems to be the bee in Carney's bonnet.
Mike explains how the U.S. aggressively sanctioned Russia after it invaded Ukraine and is doubling down on its economic warfare against Iran. Most recently, Treasury Secretary Scott Bessent announced secondary sanctions on any country or company that supports Iranian airlines. 
Mike emphasises that thanks to the dollar's reserve status, the U.S. can back up its threats. 
<blockquote>
"Much of the global economy runs on dollars, and governments or companies that cross Washington risk having access to that system restricted or cut off. The U.S. government can exert this pressure by freezing assets under U.S. jurisdiction, limiting dealings with U.S. companies, and restricting foreign banks’ access to U.S. banking accounts."
</blockquote>
This may be a great strategy from a foreign policy standpoint. It incentivizes other countries to isolate Iran and Russia, furthering U.S. aims. However, it also comes with some perverse incentives.
<blockquote>
"It motivates them to limit their exposure to the dollar system. After all, if somebody is threatening to pull a rug out from under you, the smart move is to get the rug out of the room. Enter de-dollarization. Many countries have seen the writing on the wall. Not wanting to be under the U.S. government’s thumb, they’ve started taking steps to limit their exposure to the dollar and dollar assets. After all, the U.S. can’t sanction your dollar activities if you don’t have any."
</blockquote>
Mike highlights Prime Minister Carney's comments, explaining how he's calling for a "multipolar" financial system with several reserve currencies. 
Mike emphasizes that despite the growing number of people who agree with Carney's position, he's not predicting an imminent dollar collapse. 
<blockquote>
"I’m not saying that the dollar is at immediate risk of falling off its perch, but you ignore voices like Carney’s at your own risk. He’s telling you exactly why de-dollarization is growing. You may not like it. You may think it’s dumb. You may laugh Carney off as a left-wing nut-job. You may not care what Canada thinks. You may believe the U.S. has every right to use the dollar as a weapon and that it’s good foreign policy. But what you think doesn’t change reality. And the reality is the guy running the 11th-largest economy in the world is saying he wants to minimize the role of the dollar."
</blockquote>
Mike explains the de-dollarization is a problem for the U.S., even if the greenback maintains its reserve status. 
<blockquote>
"The dollar’s role as the world's reserve currency is the only reason the U.S. can borrow, spend, and run massive budget deficits to the extent it does. It creates a built-in global demand for dollars and dollar-denominated assets. This absorbs the Federal Reserve’s money creation and helps maintain dollar strength despite the Federal Reserve’s inflationary policies. But what happens if that demand drops? A de-dollarization of the world economy could cause a dollar glut. The U.S. currency could further depreciate. At the extreme, global de-dollarization could spark a currency crisis. You and I would feel the impact through higher price inflation, eating away at the dollar's purchasing power. In the worst-case scenario, it could lead to hyperinflation."
</blockquote>
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Mike emphasizes that even if you don't particularly care about what Carney has to say, you'd be wise to listen.
<blockquote>
"He reflects a growing global consensus. The U.S. can’t be trusted. It's risky to hold rapidly devaluing dollars. Maybe we should try something else!
"If you’re saving in dollars, you might want to try something else too. You want sound money – gold and silver."
</blockquote>
Mike highlights some <a href="https://www.moneymetals.com/buy/specials">Money Metals specials</a> for listeners who want to act.
To close the show, Mike highlights the recent discovery of 2,000-year-old Roman coins. He contrasts that with a box of 2,000-year-old $100 bills. He concludes, "Paper doesn’t stand the test of time – kind of like the value of any fiat currency."
Mike points out that the guy who found those Roman denarii could immediately find a place to spend the money. 
<blockquote>
"They might not take it at Walmart, but I guarantee I could quickly find someone who would accept the denarii. Because silver has value, and virtually everybody in the world knows it. That’s why I find these treasure discoveries so fascinating. It boggles my mind that 2,000-year-old money is as valuable as it was the day it was buried. Silver and gold stand the test of time."
</blockquote>
Mike calculates the melt value of the Roman coins, revealing that their silver content alone is worth over $5,000.
<blockquote>
"Now, consider again what you might be able to buy with paper dollars in 2,000 years!"
</blockquote>
Mike notes that $5,000 buried just 50 years ago is only worth about $860 today.
He goes on to point out that durability is one of Aristotle's four characteristics of money.
<blockquote>
"In other words, money must stand the test of time. It can’t break down, rot, or corrode easily.
"Silver fits the bill.
"Gold fits the bill.
"Paper – not so much.
"And you can’t print silver or gold. That means governments can’t devalue silver money by printing more."
</blockquote>
Mike wraps up the show with a call to action, urging listeners to get sound money today by calling 800-800-1865 and talking with a Money Metals special metals specialist.
<h2>Articles Mentioned During the Show</h2>
<a href="https://www.moneymetals.com/news/2026/09/28/the-bond-bloodbath-spreads-005245">The Bond Bloodbath Spreads</a>
<a href="https://www.moneymetals.com/news/2026/09/24/treasury-announces-second-oversized-bond-buyback-as-it-tries-to-put-a-lid-on-yields-005234">Treasury Announces Second Oversized Bond Buyback to Put a Lid on Yields</a>
<a href="https://www.moneymetals.com/news/2026/09/04/if-rats-can-eat-your-money-its-probably-not-good-money-005184">If Rats Can Eat Your Money, It's Probably Not Good Money</a>

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