While we’re being distracted by the Trump-Musk spectacle, the foundation of global finance is cracking beneath the dollar 💵
⏬ In the first six months of 2025, the dollar has posted its worst performance since 1973 - down 10.8% This isn’t just currency volatility, it’s a fundamental shift in how the dollar is perceived as a global "safe haven".
What went wrong?
🗽 Policy chaos unleashed
Trump’s "Liberation Day" tariffs hit markets like a sledgehammer - wiping out $5 trillion from the S&P500 in just three days, sending investors fleeing US assets - shaken and uncertain.
🗽 Unsustainable rise in public debt
The so-called "One Big Beautiful Bill" isn’t beautiful at all - it doubles down on reckless tax cuts, slashes social spending, and piles on trillions in new borrowing. The CBO warns: $3.3 trillion expected to be added to the debt by 2034, a ticking time bomb for the economy.
🗽 Pressure on the Fed
The independence of the Federal Reserve is in question. Markets are now pricing in multiple rate cuts this year - even as growth slows.
🗽 Global repositioning
Foreign investors hold $19T in US stocks and $7T in Treasuries - but many n0w admit they’re overexposed. Moody’s downgraded US credit, and central banks are gradually shifting billions into gold, flagging a loss of faith in the greenback
A weaker dollar isn’t just about making exports cheaper. It’s a warning sign - a crack in the foundation of global trust. Confidence in the greenback is fading, and alternatives like the euro, yuan, gold - and, sure thing, Bitcoin - are ready to fill the void.
