It's almost a certainty. If country X sponsors enough golf tournament at Trump properties, buys enough Trump crypto or TruthSocial stock...they'll get a sweetheart deal.
The 4th and perhaps worst way Trump is bad for the dollar--he's likely to default on the debt. Or even just explode it terribly.
The 4th and perhaps worst way Trump is bad for the dollar--he's likely to default on the debt. Or even just explode it terribly.
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So add all four things up--what do you get?
A decline in the $, not just in VALUE, but the linked status as THE world currency.
It's the dollar's power that allows our economic sanctions to have such bite.
It gives us power over banking and transactions that we aren't actually part of directly.
More importantly--it lets us NOT be Argentina.
You have so many more options, fiscally and politically, than if it is denominated in someone else's money.
So ready for some nightmare scenarios?
What if they just...dump it.
All of it.
At once.
If you think US treasuries are a bad investment, it pays to be first mover.
China could create a run on our debt, and then...on the dollar.
What else might happen? Hey--the Swiss Franc is a small currency, but it's ridiculously stable. The highest it's been against the $ in 20 years was...
A consortium of China, Russia, Brazil...maybe even Canada, UK...could just say--hey, screw this Trump buffoon.
Let's go Swiss.
They won't pick Euro, because too political?