Uh oh. Something Trump just said makes me worried about the U.S. dollar.

Something Trump is talking about is making me worry that the dollar is about to go down.

I like Trump, but he often sets up a scapegoat ahead of problems. He’s all of a sudden talking about going back on the gold standard.

That makes me think he knows something we don’t. Is the dollar about to crash?

I concur about the US dollar devaluation. The sugar high from the taxation bill does not last forever. Treating allies like enemies will surely be consequential.
(https://www.reuters.com/article/uk-forex-poll-euro/u-s-dollar-to-keep-currency-crown-this-year-but-not-next-reuters-poll-idUSKCN1LM049)
thinking is driven by expectations that U.S. economic growth momentum has peaked as well as the fact that many of the things underpinning the dollar - ranging from expected Federal Reserve interest rate hikes to the U.S.-China trade dispute - have now been priced in.

A good friend of mine is convinced that America’s fiat currency is due for a major collapse. Of course, he is also convinced that 9-11 occurred with the complicity of the US government.

Yes.

Long time coming, the signs have been there for years. Trump has accelerated the process, though it would be beyond foolish to blame him for it.

Foreign countries have been expanding gold stockpiles. Our allies have been relocating 100’s of tons of gold back to their own countries. Russia set up their own financial SWIFT equivalent, and Europe has openly called for an alternative to SWIFT, which they are looking into. Oil is being traded in Yuan. A dozen or so countries are working out the system to bypass trade in dollars. There is much, much more…

Our countries continued hegemony will rely on control of space - SpaceX.

The worry was well founded… Proving once again that a weak president (trump) equals a weak dollar and a strong president (Biden) equals a strong dollar.

Gross domestic product increased at a 2.9% annualised rate last quarter, the Commerce Department said in its advance fourth-quarter GDP growth estimate. The economy grew at a 3.2% pace in the third quarter. Economists polled by Reuters had forecast GDP rising at a 2.6% rate.

Let’s Go Brandon! :partying_face:

Joe, you’re confused. Yes, the dollar is strong relative to other currencies. That’s what is called “dollar strength” (so it can be misleading, I get that) but it is way weaker in purchasing power here in America. What I could have bought under trump for $100 now costs me $130. That’s not a stronger dollar in terms of purchasing power.

I get what you’re saying still, why would anyone outside of Americans want to hold dollars that are worth less then they were last year, and still they do, no?

The Bottom Line

The reserve status is based largely on the size and strength of the U.S. economy and the dominance of the U.S. financial markets. Despite large deficit spending, trillions of dollars in debt, and the unbridled printing of U.S. dollars, U.S. Treasury securities remain the safest way to store money. The trust and confidence that the world has in the ability of the United States to pay its debts keep the dollar as the most redeemable currency for facilitating world commerce.

They don’t want to hold them. They need them to settle accounts as about 2/3rds of the world uses U.S. dollars for international trade, so they need dollars, but they don’t want them. The real problem is that all nations are printing as well, so all fiat currencies are going down in purchasing power. Get out of cash.

Your friend is right on both counts.

I simply do not see the Biden administration ever endorsing the weakening of the US Dollar as it is not in America’s best interest. A strengthening dollar will be an economic plague on Russia and detrimentally impinge on their war efforts in the Ukraine.

The 10,000 foot view in retrospect sees the former president (Trump) going to extremes to weaken the dollar fortunately for the world Trump’s defeat guaranteed that Russia would have to commit much more of it’s limited resources to it’s war efforts… A strong dollar insures that Russia will be far weaker after the war regardless of the outcome.

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