Will US Trade Policy Destroy US Dollar? ~ Alasdair Macleod … (Death of the Dollar–11) with Link to Full Story

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Owing to the trade war and various other factors, the US dollar is doomed.

Alasdair Macleod –

"Will America's Trade Policy End Up Destroying The Dollar?"    (Right-click title to see original story)
   (Image source)

– Flash Points –

1 – US trade policy is leading to the destruction of the US$.
2 – China and other countries may no longer buy US bonds.
3 – As for those US$ reserves which China now holds, it may dump them.
4 – The US will have to inflate the US$, to infinity.

– Synopsis – 

Acting out his role as a tough negotiator, Donald Trump has imposed various tariffs on Chinese goods over the past few years. China has responded in kind, thus leading Trump to impose even more tariffs. This has had broader international repercussions, most of which spell doom for the US$. 

Blowing, not Growing   

While global trade wars have had negative effects, those effects remain largely hidden from view. Many central banks have been printing tons of money out of thin air, and pouring that money into their respective economies. By fudging the numbers in those ways, their economies seem to be healthy and GDP appears to be growing.

But in most cases, GDP is not growing, only inflating. And the inflated bubbles will pop, eventually. Or soon.  

Inflate to Infinity!   

For the past 20 years or so, the US budget deficit has largely been funded by foreign purchasers of US debt. If those creditors decide not to buy any more US Treasuries, then the US will have no alternative but to inflate the US$. It will have to inflate to infinity.   

That predicament will occur against the backdrop of both a US recession and global recession. The fallout will be horrendous.

In fact, our not-so-esteemed overlords have already been discussing a replacement reserve currency. In other words, the dollar is screwed – with an “F.”  (Image source)

– Insight from Outside – 

Current central bank policies make economies look healthy. But at the same time, those misguided policies are impoverishing the 90%, those who are typically the lifeblood of an economy. Those policies benefit the few, while they destroy the many. 

Pleasing the Elite  

Consequently, most national economies across the globe are slowing. Not only has all the imprudent government stimulus been unsuccessful, it has in fact exacerbated the problem. And the US is in the most unstable situation.

Over the past decade, the central banks’ frenzy of quantitative-pleasing, money-printing programs has only hastened the decline. And there is now virtually nothing that can stop the collapse.    

That will mean the end of the US dollar’s status as the global reserve currency. With all the likely ramifications.   (Image source)

Posted via Steemleo | A Decentralized Community for Investors

deathof-dollar money investment crypto cryptocurrency economy steemsilvergold dedollarization palnet tradewar inflation reserve currency steemleo
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9 comments
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@majes.tytyty, In my opinion Monopoly of Printing Currency is really unfortunate aspect because common Public working day in and day out but few keep the actual Reserves from thin air. People should awake to the reality of World System because in my opinion Human Race got deceived long ago. Stay blessed.

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Good points. Continual money printing amounts to theft from those who hold, save, and spend the currency.

In a very real sense, it's fraud. But, the bankers get away with it. They are criminals who should be held accountable.

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In my opinion,in these kind of Situations collectives should rise because otherwise we will travel long journey with this Deception. Stay blessed.

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Good point. Once the current global economy collapses, the big banks and the massive corporations will also collapse.

Then we can replace them with collectives, cooperative unions, credit unions, and so on. And we can replace all fiat money with decentralized cryptos. Something to look forward to, indeed.

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Sounds a whole new Empowering Journey. Let's hope for the best. 🙂

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(Edited)

Interesting, but I do not agree that trade would be anything more than a catalyst, surely not a full cause, because US dollar dominance will break eventually, no matter the trade deals.

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True, there are many factors to take into account, as the dollar is being weakened on many fronts. But as Macleod points out, trade will be a factor.

Nevertheless, it's true that trade will be only a minor factor. The dollar faces much stronger headwinds ... actually those of growing hurricane force. :-)

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I shorted the dollar 7 years ago and it went the other way. Luckily I did it through a long term instrument, land, because the US dollar is just the healthiest horse on the road to the slaughterhouse in my humble opinion

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I fully agree. And as you imply, the road to the slaughterhouse is a long, tortuous path.

Nevertheless, the dollar will arrive at its inevitable destination, sooner or later, and that will be the "slaughter of the dollar."

Best of luck with your investments!

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