The Invisible EU Civil War — and Why It Makes the USD King Part 2/2

Peregrine
May 5
2 min read

While the world obsesses over tariffs and U.S. deficits, the real threat to global currency stability lies inside Europe — where Germany’s shadow empire and Britain’s Brexit blunders keep the euro from ever dethroning the dollar.

Part 1: Why the USD Holds the Throne

Despite constant fearmongering — over tariffs, deficits, or debt ceilings — the U.S. dollar remains the anchor of the global financial system.

Here’s why:

~60% of global reserves are in USD (IMF COFER) ~88% of global FX trades involve USD (BIS survey). $33 trillion in foreign holdings of U.S. assets (TIC data). Commodities, trade, and global debt markets all run on dollars.

Even with high debt or policy missteps, the U.S. benefits from:

Deep capital markets,
Trusted institutions,
Global military reach, and
No real challenger.

Part 2: The Invisible EU Civil War

If there’s a candidate to challenge the dollar, it’s the euro — but Europe is caught in its own quiet civil war.

✅ Germany: The Puppetmaster

The euro acts as an undervalued Deutsche Mark, amplifying German export dominance.
Southern Europe (Greece, Italy, Spain) is stuck in permanent austerity, unable to devalue or stimulate.
France, the supposed co-leader, is a junior partner: politically ambitious, economically compromised.

✅ Bailouts That Saved Banks, Not Countries

~77% of Greek bailout funds (per ESMT study) went to banks — many of them German and French — not the Greek economy.

✅ Austerity as Policy, Not Accident

Germany used Brussels as a fiscal enforcer, locking countries into cuts to protect creditor interests.

✅ Populists Rising Across the Continent

National Rally (France), Brothers of Italy, AfD (Germany), Vox (Spain) — all fueled by resentment over lost sovereignty and economic pain.

Europe’s “unity” is largely a German-led power play, with Brussels as the velvet glove over an iron fist.This internal fracture keeps the euro weak and politically fragile — nowhere near replacing the dollar.

Part 3: Brexit — Naïve Sovereignty Meets Bad Execution

Brexit was the clearest modern rebellion against EU overreach — but it stumbled hard:

✅ The intent was real:

Reclaim control over trade, immigration, and regulation.
Reject Brussels’ one-size-fits-all policymaking.

✅ The execution was a mess:

Article 50 triggered without a clear technical or economic plan.
Political chaos (hard Brexit vs. soft Brexit, infighting) paralyzed negotiation.
Businesses were left unprepared; investment collapsed.

Brexit became the cautionary tale eurozone rebels now fear — but the lesson isn’t “never leave.”It’s: leave with preparation, unity, and vision.

Final Punchline: Why the Dollar Stays on Top

The world’s main reserve currency isn’t just about economics — it’s about power, stability, and perception.

The euro remains crippled by its internal civil war.Brexit showed how naïve political elites can turn sovereignty into chaos.The yuan is shackled by capital controls.Crypto remains too volatile.

Until a credible, stable alternative emerges, the USD remains the default store of global trust.

✅ Key Data Sources: