this post was submitted on 04 Apr 2025
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Ugh, ok, almost every assumption you made was not correct.
Vanguard and fidelity will absolutely comply with any banking freeze, and if they didnt, theyd be sanctioned into the dirt. Thats what makes US sanctions so effective, is 97% of world financial transactions route through our servers. That gets shut off.
If you have faith in the FDIC then youre protected for $250k in government insurance, but inflation eats that quick.
In a scenario where things are so bad that the US has halted all financial electronic transactions than your electronic dollars don't mean anything no matter where you are, amd your paper dollars mean almost nothing either.
So my only option is to peddle my flesh for trade?
My thought are that the US is alienating more and more countries everyday. And maybe other countries may become less willing to aid US persecution of it's own people, and less afraid of US sanctions if the US is already making trading with the US pointless. So my thinking was maybe international investment companies might have some amount of insulation. But I donβt really know a lot about how the money works behind the scenes.
This is honestly the biggest takeaway. If the US actually stops cooperating with foreign banks, the dollar will instantly become worthless; The dollar only holds international worth because other countries want to have and hold dollars. If those other countries are unable to do so, there is no incentive for them to accept dollars as valid currency.