Dollar Collapse: The Crisis is No Longer Just a Theory.
Gayiakumar explains that tariffs, according to traditional views, reduce the volume of imports by raising their cost, which limits the demand for foreign currencies needed to settle the value of those goods, leading to support for the dollar. These tariffs also increase domestic prices, which raises inflation expectations, thus pushing the Federal Reserve to adopt a more stringent monetary policy compared to other central banks, which enhances the value of the U.S. currency.
Moreover, the dollar, as a "safe-haven currency," is supposed to benefit during periods of uncertainty from investment flows towards U.S. Treasury bonds, which are considered some of the safest assets. However, reality has contradicted all these expectations. As the dollar wobbles amid these profound transformations, investors and policymakers must treat the crisis as a realistic possibility, not just an economic theory. Are we facing a temporary crisis? Or the beginning of a structural shift in the global financial system?
Buy and trade $BTC
