As the United States gears up for another round of aggressive tariffs under President Donald Trump’s second term, an unexpected voice from the global tech industry has issued a stark warning. Sridhar Vembu, the billionaire founder of Zoho Corporation, has taken to X (formerly Twitter) with a fiery critique of the international monetary system—arguing that it is dangerously unstable and nearing collapse. His proposed solution? A return to gold and silver as the foundation of global trade.
While many associate Vembu with software and startups, his recent commentary places him at the center of a broader, more consequential debate: the future of the US dollar and its role in international economics.
An Engine Fueled by Debt
Vembu, known for bootstrapping his SaaS empire without external funding, believes the global financial system has functioned on an illusion for over half a century. In his words, the US has "imported far more than it exported," flooding the world with dollars that were then multiplied within the global banking system. These inflated "global dollars" became the lifeblood of international trade and investment.
But this came at a cost. To sustain this supply of liquidity, the US was forced into "perpetual debt," hollowing out its own industrial base while supporting the consumption of cheaper goods from abroad—particularly from East Asia.
According to Vembu, the system was unsound from the start. He draws a direct line from the economic frictions of the 1980s—when the Plaza Accord tried to correct trade imbalances by devaluing the dollar—to today's fragile global economy. “The system has now reached its breaking point,” he declared bluntly.
Trump’s Tariffs and the Ticking Clock
Donald Trump’s renewed focus on protectionist trade policies is only adding fuel to the fire. While the intent is to revive American manufacturing and reduce dependency on foreign imports, Vembu suggests that such measures may not address the core issue: a global financial architecture built on unsustainable debt and currency manipulation.
In fact, he implies that tariffs may only accelerate the reckoning. “The prospect of running out of gold is a real limit on imports,” he writes, hinting that tangible assets—not floating paper currencies—are the only reliable constraint in a truly balanced system.
Gold and Silver: The Old Guard Returns
Vembu's remedy is both radical and ancient: reintroduce gold and silver as the basis for settling international trade. He argues that such a model would prevent nations from overspending and over-importing—effectively anchoring economies in real, physical value.
“It will be massively painful to undo the present system,” he admits. With digital currencies and leveraged debts layered like a financial house of cards, transitioning back to metal-backed settlements would be no small feat. Yet, in his view, it may be the only way to avoid what he ominously describes as a “structural collapse.”
A New Bretton Woods—or a Global Breakdown?
Vembu’s vision is not entirely dystopian. He calls for a cooperative international effort, akin to a new Bretton Woods agreement, where global powers—including the US and China—convene to create a more sustainable system. But he’s not optimistic about the odds of such collaboration, especially amid growing geopolitical tensions.
His diagnosis isn’t just an economic theory—it’s a wake-up call from a technocrat who has built one of India’s most successful software companies, all while avoiding the pitfalls of external capital and over-leveraging. Zoho’s independence mirrors his worldview: decentralization, sustainability, and long-term thinking.
Netizens React
Comments flowed in on Vembu's tweet. One netizen even asked abour leaving out crypto. The tweet read, " Sir, You purposely kept Crypto out of the scene? Or its a miss. Would crypto be banked upon alongside silver/gold ?"
Vembu replied, " I do not have faith in crypto. Perhaps I am just old-fashioned so I prefer gold (like so many of us in India!)."
Some users accepted to his observation but at the same time tool the discussion further contending some points. " Well considered post. I think this is a good take although I don’t see us going back to the gold/silver scenario. Something else will happen instead. In any case, when the two largest players aren’t playing nice, it makes all the rest that much harder," one netizen wrote.
As Trump’s trade war re-ignites and global markets brace for turbulence, Vembu’s words strike a chord that may resonate far beyond tech circles. His message is clear: the current system is unsustainable, and gold—long relegated to vaults and history books—might just be our economic lifeline.
While many associate Vembu with software and startups, his recent commentary places him at the center of a broader, more consequential debate: the future of the US dollar and its role in international economics.
An Engine Fueled by Debt
Vembu, known for bootstrapping his SaaS empire without external funding, believes the global financial system has functioned on an illusion for over half a century. In his words, the US has "imported far more than it exported," flooding the world with dollars that were then multiplied within the global banking system. These inflated "global dollars" became the lifeblood of international trade and investment.
But this came at a cost. To sustain this supply of liquidity, the US was forced into "perpetual debt," hollowing out its own industrial base while supporting the consumption of cheaper goods from abroad—particularly from East Asia.
According to Vembu, the system was unsound from the start. He draws a direct line from the economic frictions of the 1980s—when the Plaza Accord tried to correct trade imbalances by devaluing the dollar—to today's fragile global economy. “The system has now reached its breaking point,” he declared bluntly.
To understand the present crisis, it is useful to understand how the global system has "worked" for the last 50 years: the US imported far more than it exported, issued dollars, those dollars got multiplied (in the global banking system through monetary alchemy!) and such global…
— Sridhar Vembu (@svembu) April 6, 2025
Trump’s Tariffs and the Ticking Clock
Donald Trump’s renewed focus on protectionist trade policies is only adding fuel to the fire. While the intent is to revive American manufacturing and reduce dependency on foreign imports, Vembu suggests that such measures may not address the core issue: a global financial architecture built on unsustainable debt and currency manipulation.
In fact, he implies that tariffs may only accelerate the reckoning. “The prospect of running out of gold is a real limit on imports,” he writes, hinting that tangible assets—not floating paper currencies—are the only reliable constraint in a truly balanced system.
Gold and Silver: The Old Guard Returns
Vembu's remedy is both radical and ancient: reintroduce gold and silver as the basis for settling international trade. He argues that such a model would prevent nations from overspending and over-importing—effectively anchoring economies in real, physical value.
“It will be massively painful to undo the present system,” he admits. With digital currencies and leveraged debts layered like a financial house of cards, transitioning back to metal-backed settlements would be no small feat. Yet, in his view, it may be the only way to avoid what he ominously describes as a “structural collapse.”
A New Bretton Woods—or a Global Breakdown?
Vembu’s vision is not entirely dystopian. He calls for a cooperative international effort, akin to a new Bretton Woods agreement, where global powers—including the US and China—convene to create a more sustainable system. But he’s not optimistic about the odds of such collaboration, especially amid growing geopolitical tensions.
His diagnosis isn’t just an economic theory—it’s a wake-up call from a technocrat who has built one of India’s most successful software companies, all while avoiding the pitfalls of external capital and over-leveraging. Zoho’s independence mirrors his worldview: decentralization, sustainability, and long-term thinking.
Netizens React
Comments flowed in on Vembu's tweet. One netizen even asked abour leaving out crypto. The tweet read, " Sir, You purposely kept Crypto out of the scene? Or its a miss. Would crypto be banked upon alongside silver/gold ?"
Vembu replied, " I do not have faith in crypto. Perhaps I am just old-fashioned so I prefer gold (like so many of us in India!)."
I do not have faith in crypto. Perhaps I am just old-fashioned so I prefer gold (like so many of us in India!).
— Sridhar Vembu (@svembu) April 6, 2025
Some users accepted to his observation but at the same time tool the discussion further contending some points. " Well considered post. I think this is a good take although I don’t see us going back to the gold/silver scenario. Something else will happen instead. In any case, when the two largest players aren’t playing nice, it makes all the rest that much harder," one netizen wrote.
As Trump’s trade war re-ignites and global markets brace for turbulence, Vembu’s words strike a chord that may resonate far beyond tech circles. His message is clear: the current system is unsustainable, and gold—long relegated to vaults and history books—might just be our economic lifeline.
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