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Trump Could Dethrone the Dollar
- docmechanic 2y ago'The World’s Reserve Currency May Not Survive the Weaponization of U.S. Economic Power’ Access Workaround foreignaffairs.com allows a free article to everyone, so you will avoid the paywall if you haven’t already read a free one recently.
- taylodl 2y agoNATO allies are reducing their purchase of US weapons, and the world is looking for the exits with regards to the US dollar as the reserve currency. Once the dollar is 'dethroned,' central banks will reduce their exposure to US bonds, thus increasing the cost of US debt and forcing a reduction in the size of the US government without any offsetting tax cuts.
- docmechanic 2y agoTreasuries are the usual safe haven during crashing stock markets, but this week we saw 10 year Treasury prices cratering with equities. Prices on the 10, 20, and 30 year bonds are down again today. Concerning.