Robert Reich argues that President Trump’s tariffs threaten America’s global economic dominance by undermining the dollar’s status as the world’s reserve currency. This shift, evidenced by investors withdrawing from U.S. Treasury bills, could lead to significant wealth loss and diminished American influence. The tariffs disproportionately harm lower-income Americans, acting as a regressive tax that increases the cost of goods. Reich questions the administration’s rationale for policies that accelerate the erosion of this crucial American economic advantage.
Read More
President Trump’s policies have undermined the U.S. dollar’s reliability as the global reserve currency, leading to significant consequences. Traders are selling off Treasury bonds, indicating a loss of confidence in the U.S. economy, and yields on 10- and 30-year bonds have reached alarming levels. This decline in confidence is further evidenced by international investors reducing their holdings of U.S. dollar assets and exploring alternative investment options. The potential collapse of the dollar’s dominance would trigger a global financial crisis of unprecedented scale, impacting the U.S. economy severely.
Read More
Donald Trump’s tariff policies have triggered a global market crisis, marked by plummeting share prices, bond sell-offs, and a weakening US dollar—losing its safe haven status. This unprecedented event sees US equities, government bonds, and the dollar falling simultaneously, defying typical market behavior. Experts attribute this crisis to investor concerns over volatile US policies and the potential for a US recession, fueled by escalating trade tensions. The resulting uncertainty threatens the dollar’s long-held position as the world’s primary reserve currency, prompting other global powers to consider alternative options.
Read More
Former President Trump issued a warning to BRICS nations against replacing the US dollar as the global reserve currency, threatening 100% tariffs on any country attempting to do so. This follows previous tariff threats levied against both BRICS and other nations, including Canada and Mexico. Trump’s statement comes despite ongoing global discussions regarding alternatives to the dollar, fueled by geopolitical events and economic shifts. Studies, however, continue to demonstrate the enduring global reliance on the US dollar as the primary reserve currency.
Read More
John Q. Hosedrinker