{"id":74955,"date":"2026-08-02T23:02:18","date_gmt":"2026-08-03T03:02:18","guid":{"rendered":"https:\/\/stateofthenation.info\/?p=74955"},"modified":"2026-08-02T23:18:49","modified_gmt":"2026-08-03T03:18:49","slug":"the-petrodollar-is-dead-stick-a-fork-in-it","status":"publish","type":"post","link":"https:\/\/stateofthenation.info\/?p=74955","title":{"rendered":"

THE PETRODOLLAR IS DEAD—Stick a fork in it!<\/b><\/span><\/h1>"},"content":{"rendered":"

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\"\"<\/a>Clear Cache<\/p>\n

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SOTN Editor’s Note: Something quite huge is happening in the realm where the “Financial Masters of the Universe” have reigned supreme since the Babylonian Banking Cartel<\/strong> first set up shop over 4000 years ago.<\/p>\n

It’s been obvious to the initiated since at least the stock market crash of September through October of 2008 that the entire Global Economic & Financial System is in tatters.\u00a0 It’s truly remarkable that the financial engineers and market manipulators have been able to keep the Global Gambling Casino<\/em><\/strong> going since then–a long 18 years of artificially propping up the largest Pyramid-Ponzi scheme in world history.<\/p>\n

Well, guess what: Not only is the end nigh.\u00a0 THE END IS HERE!!!\u00a0 As follows:<\/p>\n

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Op-Ed: Bessent Note at Camp David Proves “The End is Nigh”<\/h1>\n

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Hal Turner<\/p>\n

OPINION-EDITORIAL — U.S. Treasury Secretary Scott Bessent on Friday, July 31, exposed a “to-do” list during President Donald Trump’s cabinet \u200bmeeting, indicating he was contemplating U.S. purchases of $5 billion to $10 billion \u200cworth of Japanese yen, a Reuters photograph taken during the meeting (Shown above) held at Camp David shows.<\/p>\n

The Real Panic Isn’t in the Gulf. It’s on the Balance Sheets.<\/strong><\/p>\n

While the world fixates on whether Trump’s latest “locked and loaded” threat is another bluff, the real story is unfolding not in the Strait of Hormuz but on the foreign exchange markets. Yesterday, Treasury Secretary Bessent was photographed with a “To Do” list that read: “Buy Japanese Yen (JPY) 5-10 billion dollars.” You don’t scribble a ten-billion-dollar currency intervention on a notepad for a routine meeting. You do it when the world’s third-largest economy is about to detonate the global bond market.<\/p>\n

This is the economic front of the same war you just read about. While the U.S. military has run out of the munitions to sustain an air campaign, the U.S. Treasury is running out of the credibility to sustain a financial one.<\/p>\n

The Japan Trap<\/strong><\/p>\n

Japan is the largest foreign holder of U.S. government debt, sitting on over $1.1 trillion in Treasury bonds. It also has an economy that is being ground to dust by the same energy crisis that is choking the rest of the world. The price of LNG\u2014the fuel Japan must import to keep its lights on\u2014is up 77.5% year-on-year. That means Japan’s trade balance is hemorrhaging, and its currency, the yen, has collapsed to a 15-year low against the dollar.<\/p>\n

A collapsing yen is a catastrophe for Japan. It makes imported energy even more expensive, crushing domestic consumption and industrial production. But a collapsing yen is also an existential threat to the United States, for one simple reason: Japanese investors, who have borrowed cheap yen for decades to buy higher-yielding American assets, are now facing a margin call of historic proportions. If the yen falls too far, they are forced to sell those U.S. bonds to cover their losses.<\/p>\n

If Japan sells U.S. bonds in size, U.S. interest rates spike. If U.S. interest rates spike, the American housing market, stock market, and federal budget all shatter simultaneously. So the United States finds itself in the absurd position of having to prop up the Japanese yen\u2014not out of altruism, but because Japan is holding a gun to the head of the global bond market.<\/p>\n

The Euro Is Being Sacrificed<\/strong><\/p>\n

This is where Bessent’s note becomes darkly comic. The U.S. Treasury isn’t buying yen with freshly printed dollars\u2014that would only add inflationary fuel to an already raging fire. Instead, they are selling their reserves of euros to fund the yen purchase. The logic is simple: sacrifice the eurozone’s currency to save the dollar from the consequences of a Japanese bond dump.<\/p>\n

This is voodoo economics at the end of an empire. The U.S. is now actively engaged in a currency war against its own allies\u2014dumping European assets to prop up a Japanese financial system that is structurally insolvent under the weight of energy costs it cannot control. It is “Zombie QE,” using whacky, and dangerously unserious macroeconomic tools to bring dead markets on the other side of the world back to life. It is a great depression indicator.<\/p>\n

The Next Domino<\/strong><\/p>\n

The European Central Bank has remained silent for now, but it cannot ignore this forever. The U.S. is effectively exporting its financial instability to the eurozone by weakening the euro at a time when Europe is already dealing with a diesel crisis, collapsing industrial production, and gas storage levels that will not make it through winter. If the ECB retaliates\u2014by selling its own dollar reserves to defend the euro\u2014the central bank civil war goes hot, and the entire post-1971 fiat currency system faces a crisis of confidence it cannot survive.<\/p>\n

Meanwhile, the yield on the 10-year Japanese government bond is creeping toward levels that make Japan’s sovereign debt load mathematically impossible to service. The Bank of Japan is trapped: raise rates to defend the yen and you bankrupt your own government; cut rates and the yen goes into freefall, triggering the bond dump you’re trying to avoid.<\/p>\n

What This Means for the Next Few Weeks<\/strong><\/p>\n

The Bessent “leak” is not an isolated event. It is the first visible crack in a dam that is about to break. The U.S. Treasury does not conduct coordinated currency interventions for routine turbulence. They do it when the system is hours or days away from a cascading failure.<\/strong><\/p>\n

Here is what is likely to unfold:<\/strong><\/p>\n