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3 Factors Dragging Down the U.S. Dollar
330 sats \ 5 comments \ @0xbitcoiner 4h econ
The U.S. dollar (USD) is under pressure—but what’s driving the decline? Understanding these dynamics is key for investors looking to prepare for what’s ahead.
This graphic, created in partnership with New York Life Investments, provides visual context to the recent weakness in the USD. It explores three key forces underpinning this trend.
🔗 www.visualcapitalist.com
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77 sats \ 2 replies \ @Undisciplined 4h
If the dollar's going to be volatile too, maybe people should just start switching to bitcoin. Seems like a no-brainer.
It's interesting how dramatically GDP growth collapsed after moving off the gold standard.
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42 sats \ 1 reply \ @SimpleStacker 4h
Speaking of which, have you ever seen a "reputable" economist respond to the charts in https://wtfhappenedin1971.com/?
It's obviously a well known thing in bitcoin world, but I never encountered it until getting into bitcoin, and I don't think i've ever seen a mainstream guy try to debunk it, either.
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30 sats \ 0 replies \ @Undisciplined 4h
No, I haven't. I had seen it previously through all the gold bug Austrian types.
I've worked on a few hedonic pricing projects and whenever we've gone far enough back, there's always a big structural break shortly after 1971. I'm the only one who ever proposes that it's because the entire monetary system changed and people always look at me like I have two heads.
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22 sats \ 0 replies \ @035736735e 2h
Another driver is the changing geopolitical and economic landscape. Several major economies have been actively working to settle trade in local currencies or alternatives to the USD, which incrementally erodes the dollar’s dominance in global commerce. When combined with U.S. fiscal constraints and higher long-term inflation expectations, this makes volatility more likely than we have been used to in previous decades.
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0 sats \ 0 replies \ @justin_shocknet 1h
This globalist slop gets dumber and dumber
GDP growth projections are soft
The dollar is compared to other fiat currencies, there's no competing fiats where the economy it's tied to are any better
Inflation expectations
Again, compared to other fiats, where inflation is worse
Also UMich is routinely mocked since it's always an outlier from reality
Interest rate are down
Other fiats have been cutting even faster...

So why is it actually down?

  1. front-running tariffs, the bulk of them haven't actually kicked in yet, which means importers are bringing in rubber dogshit from Temu to stock warehouses = more dollar exports to the CNY to buy said rubber dogshit
  2. Europe isn't getting a free ride on defense anymore, most of the decline correlates with the run in european defense stocks so a lot of euros (which weigh heavily in the DXY) were re-repatriated from US stocks

What's next?

As re-shoring and tariffs take effect, that's less rubber dogshit coming in from Temu = less dollars exported = higher dollar
The treasury using stables to bypass the SWIFT system will allow global access to dollars without the local countries central bank taking a vig on the exchange = collapse of all foreign currencies
All fiats must collapse into the dollar before the dollar can collapse into Bitcoin... big fish eats little fish gets eaten by bigger fish
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