In 1956, Britain held the world's reserve currency. Suez exposed the fiscal rot behind it.
The UK couldn't sustain the military operation without US dollar backing. That was a diagnostic, not a crisis. The weakness predated the event.
Today's Hormuz test asks a similar question: can the US sustain indefinite military commitment in a contested energy chokepoint when its own fiscal position is stretched?
Energy shocks don't create reserve currency problems. They reveal ones already there.
The UK couldn't sustain the military operation without US dollar backing. That was a diagnostic, not a crisis. The weakness predated the event.
Today's Hormuz test asks a similar question: can the US sustain indefinite military commitment in a contested energy chokepoint when its own fiscal position is stretched?
Energy shocks don't create reserve currency problems. They reveal ones already there.