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For years the prediction was the same. The dollar is about to collapse. It keeps not happening. Here is the piece most people miss. Dollar strain and record stock markets are not a contradiction. They are two different things. The strain is real. But so is this. Global capital... keeps flowing into US assets, because out of the whole world, this is where the growth and the liquidity are. And to buy US assets, you need US dollars. So the flows themselves put a bid under the dollar. Money comes in, it has to become dollars first, and that keeps the dollar strong against everything else. That is why the dollar has not fallen to its death, no matter how many times it was called. The demand for dollars is not sentiment. It is built into the act of buying America.show more

Jeffrey P. Snider

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22,132 görüntüleme • 4 gün önce •via X (Twitter)

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Most people read the dollar exactly backwards. A rising dollar looks like strength. Strong America, good economy, the Fed doing its job. A falling dollar looks like weakness. Inflation, debasement, the end of dollar dominance. It is the other way around. A rising dollar usually means global funding is tightening. The world is short of dollars and scrambling to find them. That is not strength. That is stress. Think of a hurricane coming and everyone rushing to buy bottled water. The price spikes. That does not mean the water got stronger. It means people are scared and desperate. The dollar works the same way. When it surges against everything at once, it is telling you dollars are getting scarce, not that America is winning. That is why the dollar spikes in crises. The 1997 Asian crisis. 2008. The 2015 emerging market squeeze. March 2020. The 2024 carry trade blow up. The pattern is not random. None of this is really about the Fed or money printing. The dollar's exchange value is mechanical. It runs on the eurodollar system, the offshore dollar funding made of bank balance sheets, collateral, repo, and swaps. The biggest driver is dealer balance sheets. When dealers expand, dollars flow and the world feels calm. When they pull back, dollars get scarce and the dollar climbs. And this is the part everyone gets wrong. When foreign central banks sell US treasuries, the headlines scream that they are dumping America. They are not. They are using their reserves exactly as designed. When their markets are short of dollars, they sell treasuries to supply them. Sell treasuries, the dollar goes up. That is stress, not rejection. Which is why the dollar doom story keeps failing. They said QE would destroy the dollar after 2008. They said the deficits would collapse it. It never happened, because the problem was never too many dollars. It was not enough usable ones in the right places. So when someone tells you a strong dollar means America is strong, be careful. The strongest looking dollar is often the biggest warning sign. And a falling dollar is usually just the storm passing.

Most people read the dollar exactly backwards. A rising dollar looks like strength. Strong America, good economy, the Fed doing its job. A falling dollar looks like weakness. Inflation, debasement, the end of dollar dominance. It is the other way around. A rising dollar usually means global funding is tightening. The world is short of dollars and scrambling to find them. That is not strength. That is stress. Think of a hurricane coming and everyone rushing to buy bottled water. The price spikes. That does not mean the water got stronger. It means people are scared and desperate. The dollar works the same way. When it surges against everything at once, it is telling you dollars are getting scarce, not that America is winning. That is why the dollar spikes in crises. The 1997 Asian crisis. 2008. The 2015 emerging market squeeze. March 2020. The 2024 carry trade blow up. The pattern is not random. None of this is really about the Fed or money printing. The dollar's exchange value is mechanical. It runs on the eurodollar system, the offshore dollar funding made of bank balance sheets, collateral, repo, and swaps. The biggest driver is dealer balance sheets. When dealers expand, dollars flow and the world feels calm. When they pull back, dollars get scarce and the dollar climbs. And this is the part everyone gets wrong. When foreign central banks sell US treasuries, the headlines scream that they are dumping America. They are not. They are using their reserves exactly as designed. When their markets are short of dollars, they sell treasuries to supply them. Sell treasuries, the dollar goes up. That is stress, not rejection. Which is why the dollar doom story keeps failing. They said QE would destroy the dollar after 2008. They said the deficits would collapse it. It never happened, because the problem was never too many dollars. It was not enough usable ones in the right places. So when someone tells you a strong dollar means America is strong, be careful. The strongest looking dollar is often the biggest warning sign. And a falling dollar is usually just the storm passing.

Jeffrey P. Snider

103,799 görüntüleme • 1 ay önce

ICYMI, US🇺🇸 Treasury Secretary Scott Bessent: "Dollar dominance is essential…if you look at the new Venezuela...the dollar is going to be the centerpiece of their trade... We're seeing in the Iranian negotiations, the Iranians will be invoicing in dollars. Everything we are doing is pushing the dollar back...we're reinforcing it." The only thing the US has to reinforce dollar dominance is bullying and dropping bombs, which ironically destroys dollar dominance in the long-term. Every bomb the US drops is a message to the rest of the world to move away from the US dollar and this mafia system, not towards it.

ICYMI, US🇺🇸 Treasury Secretary Scott Bessent: "Dollar dominance is essential…if you look at the new Venezuela...the dollar is going to be the centerpiece of their trade... We're seeing in the Iranian negotiations, the Iranians will be invoicing in dollars. Everything we are doing is pushing the dollar back...we're reinforcing it." The only thing the US has to reinforce dollar dominance is bullying and dropping bombs, which ironically destroys dollar dominance in the long-term. Every bomb the US drops is a message to the rest of the world to move away from the US dollar and this mafia system, not towards it.

Going Underground

23,606 görüntüleme • 16 gün önce

The US dollar is a Ponzi scheme that needs endlessly cheap labor to maintain its viability The US dollar is not a unit of measurement Mass immigration just keeps the USD from collapsing and markets from correcting Please learn this financial reality and teach it to others

The US dollar is a Ponzi scheme that needs endlessly cheap labor to maintain its viability The US dollar is not a unit of measurement Mass immigration just keeps the USD from collapsing and markets from correcting Please learn this financial reality and teach it to others

Financial Physics

58,364 görüntüleme • 1 yıl önce

China is not what you think it is. China was created by America. In 1971 Nixon removed the dollar from the gold standard. The dollar was now worth nothing. So he needed to create demand for it. Two new hallucinations. The petrodollar — oil only sold in US dollars. And China — the world's factory, paid in US dollars. China didn't rise because of communism. China didn't rise because of hard work. China rose because America needed somewhere to park its dollars. China is a hallucination of a hallucination. And here is the problem with that. If the original hallucination becomes unstable — China becomes twice as unstable. Because it has nothing real to stand on. That is why China and America will always need each other. The dream only works if both keep dreaming it.

China is not what you think it is. China was created by America. In 1971 Nixon removed the dollar from the gold standard. The dollar was now worth nothing. So he needed to create demand for it. Two new hallucinations. The petrodollar — oil only sold in US dollars. And China — the world's factory, paid in US dollars. China didn't rise because of communism. China didn't rise because of hard work. China rose because America needed somewhere to park its dollars. China is a hallucination of a hallucination. And here is the problem with that. If the original hallucination becomes unstable — China becomes twice as unstable. Because it has nothing real to stand on. That is why China and America will always need each other. The dream only works if both keep dreaming it.

Predictive History

24,046 görüntüleme • 2 ay önce

The dollar is the reserve currency NOT because of the Petrodollar - that was absolute nonsense. It is because of capital flows and the depth of US financial markets. Weaponize it and you destroy the very foundation it depends on.

The dollar is the reserve currency NOT because of the Petrodollar - that was absolute nonsense. It is because of capital flows and the depth of US financial markets. Weaponize it and you destroy the very foundation it depends on.

Martin A. Armstrong

90,763 görüntüleme • 3 ay önce

Stablecoin competition is heating up, but the market does not need hundreds of isolated digital dollars. It needs shared liquidity between regulated dollars. As banks, fintechs, payment companies, and platforms explore issuance, the real question is not who can launch another token. It is whether those dollars can move, settle, and redeem through a common framework. That is the role Metal Dollar was built to play. XMD is not just another dollar. It is designed to be a liquidity layer for institution-issued digital dollars.

Stablecoin competition is heating up, but the market does not need hundreds of isolated digital dollars. It needs shared liquidity between regulated dollars. As banks, fintechs, payment companies, and platforms explore issuance, the real question is not who can launch another token. It is whether those dollars can move, settle, and redeem through a common framework. That is the role Metal Dollar was built to play. XMD is not just another dollar. It is designed to be a liquidity layer for institution-issued digital dollars.

Metal Dollar

16,569 görüntüleme • 1 ay önce

When people talk about the dollar, they mean DXY. The main index everyone follows. But you should never follow just one. DXY is useful, and it correlates strongly with the big mechanical flows. That is how powerful these relationships are. It is also limited. The problem is it is heavily weighted to the euro. So if the euro moves a lot, DXY can make the dollar look dramatic even when the real picture is more complicated. Sometimes DXY looks calm while emerging market currencies are under heavy pressure. Sometimes the euro masks stress somewhere else. Sometimes the dollar is rising hard against Asian currencies before the index even catches up. To actually read dollar conditions, you look across currencies. You watch reserve sales, FX interventions, repo markets, and cross-currency basis swaps. You watch Treasury collateral and volatility. The dollar's exchange value is not a clean number. It is a symptom of global balance sheet dynamics. That said, DXY does line up with one thing. Foreign governments selling their reserves. When officials overseas dump their Treasury holdings, it is not because they hate America or are fleeing the dollar for the next scheme the doomers are selling. They are doing it because dollars are getting harder to find. The big Eurodollar bank dealers are pulling back their balance sheets, and dollars are drying up. Think of Treasuries as bottled water. The storm is coming, the water is getting expensive, so foreign authorities reach into their stockpile. But to use it, they have to sell it. And when they sell, watch what even imperfect DXY does. It goes up. So there it is. A dollar shortage forces reserve sales, and reserve sales push the dollar's value higher. A rising dollar is not strength. It is the shortage showing up in the one number everyone watches.

When people talk about the dollar, they mean DXY. The main index everyone follows. But you should never follow just one. DXY is useful, and it correlates strongly with the big mechanical flows. That is how powerful these relationships are. It is also limited. The problem is it is heavily weighted to the euro. So if the euro moves a lot, DXY can make the dollar look dramatic even when the real picture is more complicated. Sometimes DXY looks calm while emerging market currencies are under heavy pressure. Sometimes the euro masks stress somewhere else. Sometimes the dollar is rising hard against Asian currencies before the index even catches up. To actually read dollar conditions, you look across currencies. You watch reserve sales, FX interventions, repo markets, and cross-currency basis swaps. You watch Treasury collateral and volatility. The dollar's exchange value is not a clean number. It is a symptom of global balance sheet dynamics. That said, DXY does line up with one thing. Foreign governments selling their reserves. When officials overseas dump their Treasury holdings, it is not because they hate America or are fleeing the dollar for the next scheme the doomers are selling. They are doing it because dollars are getting harder to find. The big Eurodollar bank dealers are pulling back their balance sheets, and dollars are drying up. Think of Treasuries as bottled water. The storm is coming, the water is getting expensive, so foreign authorities reach into their stockpile. But to use it, they have to sell it. And when they sell, watch what even imperfect DXY does. It goes up. So there it is. A dollar shortage forces reserve sales, and reserve sales push the dollar's value higher. A rising dollar is not strength. It is the shortage showing up in the one number everyone watches.

Jeffrey P. Snider

13,192 görüntüleme • 1 ay önce

"The cedi's appreciation against the dollar is temporary, and it is not due to any economic gurus in Ghana. Rather, it is because the global market is not demanding the dollar as it used to. These are basic economic principles." — Hon. Kennedy Agyapong

"The cedi's appreciation against the dollar is temporary, and it is not due to any economic gurus in Ghana. Rather, it is because the global market is not demanding the dollar as it used to. These are basic economic principles." — Hon. Kennedy Agyapong

EDHUB🌍ℹ

159,378 görüntüleme • 1 yıl önce

Peter Schiff, who gained fame for accurately predicting the 2008 financial crisis: The world is now pulling the rug out from under the US. The dollar is going to collapse. The dollar is going to be replaced by gold. Central banks are buying gold… they’re getting rid of dollars. We are headed for an economic crisis again that will make the 2008 financial crisis look like a Sunday school picnic. This one is not a global financial crisis — it’s an American financial crisis. The rest of the world is actually going to benefit. The bubble is in the dollar. The bubble is in the US economy.

Peter Schiff, who gained fame for accurately predicting the 2008 financial crisis: The world is now pulling the rug out from under the US. The dollar is going to collapse. The dollar is going to be replaced by gold. Central banks are buying gold… they’re getting rid of dollars. We are headed for an economic crisis again that will make the 2008 financial crisis look like a Sunday school picnic. This one is not a global financial crisis — it’s an American financial crisis. The rest of the world is actually going to benefit. The bubble is in the dollar. The bubble is in the US economy.

Clash Report

2,098,282 görüntüleme • 6 ay önce

THE NIGHTMARE SCENARIO NOBODY IS TALKING ABOUT AN OIL + DOLLAR SHORTAGE The nightmare scenario nobody is talking about right now is what happens if the Dollar skyrockets at the same time as oil. Since the world's oil supply is purchased in Dollars, they are typically inversely correlated. A lower Dollar = increased international demand for oil. The only time we've seen a brief period of oil 🔼 Dollar 🔼 was in 2022, during the economic slowdown. The nightmare scenario we're facing is a global oil supply shortage at the same time as an economic crisis. Both of these compound the demand for Dollars because not only are nations forced to liquidate greater assets to purchase oil, but servicing sovereign debt becomes much more expensive because it's denominated in Dollars. This energy crisis could very well be the beginning of Brent Johnson's Santiago Capital Dollar Milkshake Theory and the United States' plan to take a large portion of its debt out of circulation.

THE NIGHTMARE SCENARIO NOBODY IS TALKING ABOUT AN OIL + DOLLAR SHORTAGE The nightmare scenario nobody is talking about right now is what happens if the Dollar skyrockets at the same time as oil. Since the world's oil supply is purchased in Dollars, they are typically inversely correlated. A lower Dollar = increased international demand for oil. The only time we've seen a brief period of oil 🔼 Dollar 🔼 was in 2022, during the economic slowdown. The nightmare scenario we're facing is a global oil supply shortage at the same time as an economic crisis. Both of these compound the demand for Dollars because not only are nations forced to liquidate greater assets to purchase oil, but servicing sovereign debt becomes much more expensive because it's denominated in Dollars. This energy crisis could very well be the beginning of Brent Johnson's Santiago Capital Dollar Milkshake Theory and the United States' plan to take a large portion of its debt out of circulation.

Financelot

2,202,173 görüntüleme • 4 ay önce

Everyone thinks the Fed prints endless money. So why does the world keep running short of dollars? Because what the Fed actually creates is not the money the world uses. It creates bank reserves. Those are not real money. They are limited-use tokens that only work inside the interbank system. The dollars that move the world are private bank money, created when commercial banks lend. Ledger entries on JP Morgan, on Deutsche Bank. That is the disconnect. The Fed can flood the system with reserves, but if banks will not lend, no real money reaches the economy. That was the entire 2010s. Everyone saw the reserves and screamed inflation, dollar to zero. The opposite happened, because the banks stayed constrained. So a dollar shortage has almost nothing to do with the Fed. It is about whether banks are willing to move. And right now, they are not.

Everyone thinks the Fed prints endless money. So why does the world keep running short of dollars? Because what the Fed actually creates is not the money the world uses. It creates bank reserves. Those are not real money. They are limited-use tokens that only work inside the interbank system. The dollars that move the world are private bank money, created when commercial banks lend. Ledger entries on JP Morgan, on Deutsche Bank. That is the disconnect. The Fed can flood the system with reserves, but if banks will not lend, no real money reaches the economy. That was the entire 2010s. Everyone saw the reserves and screamed inflation, dollar to zero. The opposite happened, because the banks stayed constrained. So a dollar shortage has almost nothing to do with the Fed. It is about whether banks are willing to move. And right now, they are not.

Jeffrey P. Snider

62,137 görüntüleme • 20 gün önce

As #US economic data continues to disappoint, the #dollar and #USstocks weaken while the #RMB strengthens. Zhu Min, former deputy managing director of the International Monetary Fund, told #ChinaPerspectives that the world has witnessed that a dominant dollar is not necessarily a good thing, as US monetary and fiscal policies can significantly impact the dollar's value and capital flows. A balanced force against the dollar is good for the whole world. "RMB will continue to internationalize to serve that role not only for China, but for the whole world."#3rdplenum

As #US economic data continues to disappoint, the #dollar and #USstocks weaken while the #RMB strengthens. Zhu Min, former deputy managing director of the International Monetary Fund, told #ChinaPerspectives that the world has witnessed that a dominant dollar is not necessarily a good thing, as US monetary and fiscal policies can significantly impact the dollar's value and capital flows. A balanced force against the dollar is good for the whole world. "RMB will continue to internationalize to serve that role not only for China, but for the whole world."#3rdplenum

China Daily

17,941 görüntüleme • 2 yıl önce

🚨Peter Schiff: China🇨🇳 is silently dumping the dollar, a US🇺🇸 dollar crisis is coming soon! ‘China is gradually weaning themselves off of the dollar. That’s why, if you look at their holdings of US Treasuries, they’ve actually gone down a bit over the years. If you look at all the new Treasuries we’ve issued over the years, the fact that the Chinese haven’t bought any of them is a big deal because they used to be a main buyer of these assets. Instead of buying more Treasuries, they’ve bought more gold. So if you look at US dollar debt as a percentage of all the reserves the Chinese own, Treasuries are a much smaller percentage of their total reserves than they once were, especially if you consider the appreciation of gold. I would guess the reason they’re not moving more dramatically is because they probably don’t want to cause a crash, the dollar to implode, the Treasury market to implode, because they are trying to sell and want to get a decent price. So I think they’re happy to slowly bleed it off to try to get that good price. They just have to worry about the impact on the dollar, because if they try to dump too many dollars at once, the dollar could go down, and especially if a lot of other countries see that and want to get out. There could be a run on the dollar. If all the holders decide they want to get out, they don’t want to be the last one holding the dollar, and so it becomes a rush, and we could be in a US dollar crisis relatively soon anyway… I think we’re heading for a real crisis in the US, and I think countries that are smart would be trying to get ahead of that by selling whatever they can, as quietly as they can, out of US dollars and any US dollar-denominated debt.’ -Peter Schiff on Going Underground

🚨Peter Schiff: China🇨🇳 is silently dumping the dollar, a US🇺🇸 dollar crisis is coming soon! ‘China is gradually weaning themselves off of the dollar. That’s why, if you look at their holdings of US Treasuries, they’ve actually gone down a bit over the years. If you look at all the new Treasuries we’ve issued over the years, the fact that the Chinese haven’t bought any of them is a big deal because they used to be a main buyer of these assets. Instead of buying more Treasuries, they’ve bought more gold. So if you look at US dollar debt as a percentage of all the reserves the Chinese own, Treasuries are a much smaller percentage of their total reserves than they once were, especially if you consider the appreciation of gold. I would guess the reason they’re not moving more dramatically is because they probably don’t want to cause a crash, the dollar to implode, the Treasury market to implode, because they are trying to sell and want to get a decent price. So I think they’re happy to slowly bleed it off to try to get that good price. They just have to worry about the impact on the dollar, because if they try to dump too many dollars at once, the dollar could go down, and especially if a lot of other countries see that and want to get out. There could be a run on the dollar. If all the holders decide they want to get out, they don’t want to be the last one holding the dollar, and so it becomes a rush, and we could be in a US dollar crisis relatively soon anyway… I think we’re heading for a real crisis in the US, and I think countries that are smart would be trying to get ahead of that by selling whatever they can, as quietly as they can, out of US dollars and any US dollar-denominated debt.’ -Peter Schiff on Going Underground

Afshin Rattansi

107,856 görüntüleme • 6 ay önce

THE US DOLLAR IS ABOUT TO CRASH AND THIS IS WHY BERKSHIRE IS MOVING $348 BILLION DOLLARS

THE US DOLLAR IS ABOUT TO CRASH AND THIS IS WHY BERKSHIRE IS MOVING $348 BILLION DOLLARS

Sweep

22,262 görüntüleme • 7 ay önce

Former World Bank Director, Erik Bethel, breaks down a US dollar collapse scenario. “How are they buying it? Well they buy it by printing money. The artificial demand for dollars around the world is largely due to the fact that 60% of central banks have the dollar sitting in reserves. If the dollar isn’t there because nobody wants to use the dollar, we’re screwed. All that artificial demand for dollars disappears and we crater. We’re not going to be able to pay Medicare. And we’re adding $1 trillion of debt every hundred days. You know our government is paying more in interest on our debt, like over $1 trillion in interest alone. We’re paying more in interest, just in interest to service the debt than we are paying for the Defense Department. People start losing faith in the dollar. We see huge amounts of inflation, perhaps hyperinflation.”

Former World Bank Director, Erik Bethel, breaks down a US dollar collapse scenario. “How are they buying it? Well they buy it by printing money. The artificial demand for dollars around the world is largely due to the fact that 60% of central banks have the dollar sitting in reserves. If the dollar isn’t there because nobody wants to use the dollar, we’re screwed. All that artificial demand for dollars disappears and we crater. We’re not going to be able to pay Medicare. And we’re adding $1 trillion of debt every hundred days. You know our government is paying more in interest on our debt, like over $1 trillion in interest alone. We’re paying more in interest, just in interest to service the debt than we are paying for the Defense Department. People start losing faith in the dollar. We see huge amounts of inflation, perhaps hyperinflation.”

Shawn Ryan

795,793 görüntüleme • 6 ay önce

This statement by Riad Salame did not get enough attention yesterday, and the interviewer didn’t even realize what was being said. RS is saying that the old dollar deposits in the Lebanese banking system are originally LBP deposits that were converted to USD at some point in the chain. Therefore, the solution for these dollars is “different” than it would be for “fresh” dollar deposits brought in from outside Lebanon. In other words, his solution is that all of the old dollar deposits should be returned to their owners in full but… in their original value of 1500 LBP to USD, and not in real dollars as they weren’t real dollars to begin with. That was BDL’s plan all along. They convinced people over the last 20 years that by converting their deposit to USD in the bank (or accepting others USD deposit for payments etc), they now had dollars and were safe. The objective was to convince people not to convert their LBP into real dollars (eg real dollar bills or transfers outside Lebanon), which would have caused the currency collapse years earlier. So they pulled a psychological trick on them by giving them dollar IOUs that they never intended to honor. Add decades of accrued interest on top of that and the debt became gigantic. It is not practical today to distinguish between the two sources of dollar deposits for the most part.

This statement by Riad Salame did not get enough attention yesterday, and the interviewer didn’t even realize what was being said. RS is saying that the old dollar deposits in the Lebanese banking system are originally LBP deposits that were converted to USD at some point in the chain. Therefore, the solution for these dollars is “different” than it would be for “fresh” dollar deposits brought in from outside Lebanon. In other words, his solution is that all of the old dollar deposits should be returned to their owners in full but… in their original value of 1500 LBP to USD, and not in real dollars as they weren’t real dollars to begin with. That was BDL’s plan all along. They convinced people over the last 20 years that by converting their deposit to USD in the bank (or accepting others USD deposit for payments etc), they now had dollars and were safe. The objective was to convince people not to convert their LBP into real dollars (eg real dollar bills or transfers outside Lebanon), which would have caused the currency collapse years earlier. So they pulled a psychological trick on them by giving them dollar IOUs that they never intended to honor. Add decades of accrued interest on top of that and the debt became gigantic. It is not practical today to distinguish between the two sources of dollar deposits for the most part.

Mike Azar

38,478 görüntüleme • 8 ay önce

⏳ The collapse that will change EVERYTHING is happening now. 💥 The U.S. dollar is on the brink — and no one in power is warning you. BRICS nations are dumping the dollar, hoarding gold, and rewriting global trade. This is the beginning of the end for the dollar. 💵

⏳ The collapse that will change EVERYTHING is happening now. 💥 The U.S. dollar is on the brink — and no one in power is warning you. BRICS nations are dumping the dollar, hoarding gold, and rewriting global trade. This is the beginning of the end for the dollar. 💵

Redacted

38,531 görüntüleme • 1 yıl önce

In 1971, the U.S. literally ran out of money. Back then, the dollar was backed by gold, which meant every paper dollar represented real gold sitting in U.S. reserves. The problem was the country was spending way more than it earned, printing dollars that didn’t have enough gold to back them. As other countries realized this, they started trading their dollars in for gold. The gold reserves began to drain fast. That Sunday night, President Nixon went on TV and told the world the U.S. was “suspend temporarily convertibility” of dollars into gold. What that really meant was the U.S. couldn’t pay what it owed in real money anymore. At that time, Ray Dalio was a young clerk on the floor of the New York Stock Exchange. He thought markets would collapse the next day. Instead, stocks soared. The U.S. had just made money worth less, and when that happens, asset prices usually rise. He later found out the same thing had happened in 1933 when FDR also cut the gold link. Both times, the U.S. printed more paper money to keep spending, and each dollar ended up buying less. That moment in 1971 changed the entire global system. From then on, money wasn’t something you could exchange for gold, it became a promise backed only by trust. And that’s where the connection to today comes in. Trust in that promise is fading again. Inflation is running above target, the dollar is sliding, and people are moving into things that don’t rely on faith in any government such as gold and bitcoin. Foreign investors aren’t pulling away from America, but they are protecting themselves. They’re still buying U.S. assets, just not without hedging the risk. They don’t want to be caught holding paper that keeps losing value. Dalio’s story shows how this cycle keeps repeating. The system runs on confidence until it doesn’t. And every time it slips, people turn back to hard assets, not because they want to, but because they have to.

In 1971, the U.S. literally ran out of money. Back then, the dollar was backed by gold, which meant every paper dollar represented real gold sitting in U.S. reserves. The problem was the country was spending way more than it earned, printing dollars that didn’t have enough gold to back them. As other countries realized this, they started trading their dollars in for gold. The gold reserves began to drain fast. That Sunday night, President Nixon went on TV and told the world the U.S. was “suspend temporarily convertibility” of dollars into gold. What that really meant was the U.S. couldn’t pay what it owed in real money anymore. At that time, Ray Dalio was a young clerk on the floor of the New York Stock Exchange. He thought markets would collapse the next day. Instead, stocks soared. The U.S. had just made money worth less, and when that happens, asset prices usually rise. He later found out the same thing had happened in 1933 when FDR also cut the gold link. Both times, the U.S. printed more paper money to keep spending, and each dollar ended up buying less. That moment in 1971 changed the entire global system. From then on, money wasn’t something you could exchange for gold, it became a promise backed only by trust. And that’s where the connection to today comes in. Trust in that promise is fading again. Inflation is running above target, the dollar is sliding, and people are moving into things that don’t rely on faith in any government such as gold and bitcoin. Foreign investors aren’t pulling away from America, but they are protecting themselves. They’re still buying U.S. assets, just not without hedging the risk. They don’t want to be caught holding paper that keeps losing value. Dalio’s story shows how this cycle keeps repeating. The system runs on confidence until it doesn’t. And every time it slips, people turn back to hard assets, not because they want to, but because they have to.

StockMarket.News

94,997 görüntüleme • 10 ay önce