The rupee drops more fir some reason
Have we already reached a tipping point for the USD as a reserve currency?
If not will this make that happen?
Because the real “shit hits the fan” moment will be when the rest of the World dumping USD assets (most notably, Treasuries) starts snowballing as those still holding assets valued in USD start getting hit by dollar devaluation due to others having dump USD assets, pushing them to sell dollars and dollar-denominated assets to avoid further losses.
Given just how large of a fraction of their currency is held by foreigners, a snowballing aversion to holding dollars is the kind of thing that can result in hyperinflation in the US.
The top 10% own more than 50% of the assets. If the billionaires actually have class solidarity they will simply keep owning dollars and stomach the losses from China selling their government bonds. Chances are that everybody else keeps their bonds because the US still have some influence.
I would guess that they could also put China on an embargo and just reject to trade their bonds, much like the EU does with Russia.
The US have killed Gaddafi for creating a reserve currency for Africa. Trump would be dead if he actually would be threatening the dollar.
How do I make money from this?
That’s a surprisingly more complex question that it seems.
Which money? Dollars, Euros, Yen, something else?
Unless you’re a professional investor, it really depends on which currency you spend for your day to day or big ticket items.
So first I’ll answer a slightly different but related question: “How do I protect myself from this if I’m American?”
- Move your savings/investments to assets which are not denominated in USD (for example, stocks in a non-US stock exchange), open a bank account which is not in USD (I believe that’s possible in some banks in the US) and convert your savings to that currency and deposit them there, buy Gold (thus in practice converting you savings to a ancient currency not controlled by any state). That is, if you have savings. If you don’t, well, you’ll mostly have to weather it: concrete non-perishable stuff has the same utility value no matter what the dollar value is, so your home is your home (if you’re lucky enough to own it) thus its worth to you is the same whatever it’s supposed dollar value is, and as others said “canned goods and cigarettes” too keep their value no matter what the USD value says.
As for how to make money from it, as somebody else said, “forex gambling”, more specifically derivatives on cross-currency pairs such as Futures on USDEUR. However that stuff is risk: Will USD hyperinflation really happen or will it be something milder? When will it happen, precisely? Derivatives move like crazy and things like Futures can result in margin calls (basically you have to give them more money) if they move against the direction you’re betting,
Back when I lived in Britain I avoided the 20% crash of the British Pound from the Leave Referendum results by having most of my savings in Gold and Euros, so in pounds it could be said I made a 20% profit in a couple of days (basically the week when the results came out), though now I’m in the Eurozone and, not even being a Briton have no relation to that country and don’t actually care about about the value of my savings in British Pounds, so that week I didn’t really made any profit in Euros. That said, over the years (the money is still there) that investment in Gold has gone up in value quite a lot even in Euros.
That said most of it was the product of me simply distrusting Britain and the British Pound as a safe store of value hence already keeping a big chunk of my savings outside it, though I did move some more just before the Leave Referendum results came out just in case.
So in summary: just getting your savings out of the USD merely to another currency will protect them, whilst Gold over the long term will probably make you a bit of profit (certainly in USD due the mismanagement of the US Economy). Big profits can only come from forex gambling, but so do big losses as derivatives are much more risky that just holding the underlying assets (in this case, some foreign currency you bought with dollars).
Nice write-up, but I’m not American, never been there, have no wealth in USD. How do I make money then? Derivative-shorting the USD somehow? But as others have mentioned, the descent is unpredictable.
In that situation I can only think of derivative shorting of the US as a way to directly make money from it.
Indirectly, maybe bet in gold to reap gains from the global environment of uncertainty in the safety of modern currencies that will surely come with a USD crash (that’s basically how I’ve positioned myself since a few years after the 2008 Crash - having concluded that the whole “saving of the Economy” after it wasn’t fixing any of the problems, just delaying the consequences - and that has yielded in EUR a return of about 400% in a bit over a decade, especially in the last 5 years).
One might also bet in currencies most likely to gain from the end of the US and USD dominance, the greatest of which IMHO is the Chinese Yuan, but how you would go about doing it, I don’t know.
Don’t. Remember the classic
markets can stay irrational longer than you can remain solvent
Forex gambling
I’ve personally been using it like that for my entire freelancing career of over 20 years. Not since last year though. I’m not staying on a sinking ship.
Back when I lived in Britain working as a freelance ITer in the Finance Industry, after the 2008 Crash and from pretty much a front seat seeing how the authorities there managed the whole thing I lost trust in Britain and the British Pound to safely hold my savings, so kept moving any money I saved out if it, first to Euros (as I was an immigrant there and still had a bank account abroad) and later also to Gold.
Fast forward a few years and when the Leave Referendum results came out and the British Pound tanked 20% in a week, I had only about £2000 in British pounds, having even moved most of the leftovers of my savings out of the pound before the results came out “just in case”.
So my own anecdotal experience is that when a country’s economic and social stability starts showing cracks whilst the politicians in power are mainly concerned with their own wealth and that of their mates, it’s best to at least move a fraction of one’s savings out of that country’s currency, possibly even out of the country itself (I did both, though my situation was unusual hence I naturally had a bank account outside Britain).
Why would Sleepy Joe Biden do this? 🤷
It wasn’t just Joe, it is the whole Biden crime family including Hunter and his evil Laptop.
The US is a literal house of cards. Would love for the world to finally move away from the US dollar as reserve currency.
This is already being written down in the history books because of how devastating it is at home and abroad. You can look up Trump-Futanari inflation if you don’t believe me.
Hmm. Guess I shouldn’t have invested my kids’ college fund in futanari bonds after all.
Everyone knows futanari bonds are a bad idea! You gotta flip your futanaris frequently!
I think you’ll find it’s a big beautiful drop. A tremendous drop. Everyone is saying it’s the best drop ever!
Big beautiful drop!
The was on the Project 2025 roadmap. Cheaper to export things when the dollar is cheaper.
And inflates away the massive US debt.
And increases the pressure for plebs to invest
The heritage foundation is an enemy of the American people
Let’s not limit it to the US
Things like soybeans? They really are complete fucking idiots.
Interest rates dropping, prepare for inflation, and prices, to surge.
PSA for those needing the reminder: Anyone with any savings should be keeping it in a brokerage account (eg Fidelity, eTrade, Vanguard, etc). Savings accounts at banks don’t pay you anywhere near enough interest to keep up with inflation. But with a brokerage you can put that money into a managed fund, which is in turn investing it into the parts of the economy where all the value is going, returning that value to you at like 5%-20% per year. It doesn’t need to be a 401K account connected to your workplace, it can just be a standalone account with regular tax. Even after the gains tax it’s like an order more growth than a savings account and usually outpaces real inflation. Even if the fund’s holdings include things you don’t find 100% ethical, it’s likely what a bank is investing your savings account money in anyway - Just without sharing the profits with you.
Are there enough shares for everybody to buy? If not and people only own index funds then where do those funds put the money?
Ill gladly refinance my mortgage, but at what cost?
what cost?
Closing?
Depends on the lender but usually like $4-8k. It’s bet that you won’t want to change the terms of the mortgage again until your balance is lower than it would be otherwise.
ah yes, dollar, my favourite currency
Are we great yet?
No. You must suffer a little more for us to be great.
I’m tired of winning boss
The euro has had the biggest gain of the major currencies against the faltering dollar, surging nearly 14 per cent to above $1.17
That’s for 2025.
Wall Street banks expect the euro to strengthen to $1.20 by the end of 2026
So 3 cent decline for the dollar for 2026, that is pretty stable if that holds.
The headline must refer to what has already happened, but then why is it “on track” instead of it being already a fact?
Or does the author not believe the Wall Street banks?Anywho I don’t believe the dollar will only decline 3 cents against the Euro in 2026.
The American economy would clearly be in declining growth already, if it wasn’t for the AI bubble. I suspect this to become clearer when job numbers for January and February 2026 are released.
The completely irresponsible federal budget for 2026 probably won’t help either, and the Trump administration is almost guaranteed to make things worse as they continue their crazy policies, with or without Trump, I don’t think that really matters much. The rest of the administration is as crazy as Trump is.Anywho I don’t believe the dollar will only decline 3 cents against the Euro in 2026.
The EU is going to buy US weapons and energy for billions and pledged billions to invest in the US. All of this has been prepared, by all politicians, in all western countries.
i have this sticker i’m turning into a christmas ornament of santa on the shitter. i can’t remember if the shitter is a chimney or not. it was a gift from my late grandmother and i adore it. i’m tempted to have one of my visual artist friends use it as inspiration for a “i did that” krasnov sticker
(i found this on temu, the one gram gave me is grumpier. has more soul. but you get the idea)
