‘America First’ requires dominance of King Dollar
What's the administration thinking here?
For years, monetary doves have challenged hawks worried about the dominance of the U.S. dollar as the world’s reserve currency, with a very good question: What sovereign currency could replace it?
As it turns out, the answer is none of the above. But that doesn’t mean the greenback isn’t being replaced. After the single-worst year of performance for King Dollar in nearly a decade, the USD has continued to collapse. The U.S. Dollar Index has fallen by over 3% in less than a fortnight since President Donald Trump escalated his war on the Federal Reserve‘s independence — an effort supercharged by the Justice Department’s unprecedented criminal investigation into Fed Chairman Jerome Powell and the president’s since-revoked tariff threat in his gambit to get Greenland.
But the USD and U.S. Treasurys are not being challenged by Europe, where the economy is stagnating, or by China, which is stuck in a demographic and deflationary doom spiral. Instead, a sovereign currency isn’t dethroning King Dollar — it’s gold and silver.
Gold prices have more than doubled in the past year to an earth-shattering record of nearly $5,500 per ounce. Silver prices have nearly quadrupled, including a 66% increase in the past month to over $115 per ounce. A boom in precious metals valuation and a bust in Treasurys resulted from the dual fracas of the Powell subpoena and the Greenland tariff tease. So, gold holdings at current market prices have unseated Treasurys as the top reserve asset for the world’s central banks.
When asked about the dollar’s decline during his Jan. 27 not-a-campaign-visit to Iowa, Trump insisted on optimism, saying, “The dollar’s doing great.”
The same way that former President Joe Biden’s delusional insistence that near-double-digit inflation simply entrenched higher inflation expectations, worsening the crisis of Bidenomics, the dollar interpreted Trump’s optimism as tolerance for a weaker greenback. And the dollar fell a full 1.3% on Jan. 27, in its worst daily tumble since shortly after “Liberation Day,” when Trump announced his tariff regime.
Cue the perennially besieged Scott Bessent, the treasury secretary who may have an even more taxing job than “Secretary of Everything” Marco Rubio.
The morning after Trump’s greenback gaffe, Bessent reiterated the administration’s support for a “strong dollar policy.” Directly contradicting Trump’s complaint that Japan “devalues” the yen, making it “hard to compete,” Bessent maintained that the U.S. would not …
What's the administration thinking here?
For years, monetary doves have challenged hawks worried about the dominance of the U.S. dollar as the world’s reserve currency, with a very good question: What sovereign currency could replace it?
As it turns out, the answer is none of the above. But that doesn’t mean the greenback isn’t being replaced. After the single-worst year of performance for King Dollar in nearly a decade, the USD has continued to collapse. The U.S. Dollar Index has fallen by over 3% in less than a fortnight since President Donald Trump escalated his war on the Federal Reserve‘s independence — an effort supercharged by the Justice Department’s unprecedented criminal investigation into Fed Chairman Jerome Powell and the president’s since-revoked tariff threat in his gambit to get Greenland.
But the USD and U.S. Treasurys are not being challenged by Europe, where the economy is stagnating, or by China, which is stuck in a demographic and deflationary doom spiral. Instead, a sovereign currency isn’t dethroning King Dollar — it’s gold and silver.
Gold prices have more than doubled in the past year to an earth-shattering record of nearly $5,500 per ounce. Silver prices have nearly quadrupled, including a 66% increase in the past month to over $115 per ounce. A boom in precious metals valuation and a bust in Treasurys resulted from the dual fracas of the Powell subpoena and the Greenland tariff tease. So, gold holdings at current market prices have unseated Treasurys as the top reserve asset for the world’s central banks.
When asked about the dollar’s decline during his Jan. 27 not-a-campaign-visit to Iowa, Trump insisted on optimism, saying, “The dollar’s doing great.”
The same way that former President Joe Biden’s delusional insistence that near-double-digit inflation simply entrenched higher inflation expectations, worsening the crisis of Bidenomics, the dollar interpreted Trump’s optimism as tolerance for a weaker greenback. And the dollar fell a full 1.3% on Jan. 27, in its worst daily tumble since shortly after “Liberation Day,” when Trump announced his tariff regime.
Cue the perennially besieged Scott Bessent, the treasury secretary who may have an even more taxing job than “Secretary of Everything” Marco Rubio.
The morning after Trump’s greenback gaffe, Bessent reiterated the administration’s support for a “strong dollar policy.” Directly contradicting Trump’s complaint that Japan “devalues” the yen, making it “hard to compete,” Bessent maintained that the U.S. would not …
‘America First’ requires dominance of King Dollar
What's the administration thinking here?
For years, monetary doves have challenged hawks worried about the dominance of the U.S. dollar as the world’s reserve currency, with a very good question: What sovereign currency could replace it?
As it turns out, the answer is none of the above. But that doesn’t mean the greenback isn’t being replaced. After the single-worst year of performance for King Dollar in nearly a decade, the USD has continued to collapse. The U.S. Dollar Index has fallen by over 3% in less than a fortnight since President Donald Trump escalated his war on the Federal Reserve‘s independence — an effort supercharged by the Justice Department’s unprecedented criminal investigation into Fed Chairman Jerome Powell and the president’s since-revoked tariff threat in his gambit to get Greenland.
But the USD and U.S. Treasurys are not being challenged by Europe, where the economy is stagnating, or by China, which is stuck in a demographic and deflationary doom spiral. Instead, a sovereign currency isn’t dethroning King Dollar — it’s gold and silver.
Gold prices have more than doubled in the past year to an earth-shattering record of nearly $5,500 per ounce. Silver prices have nearly quadrupled, including a 66% increase in the past month to over $115 per ounce. A boom in precious metals valuation and a bust in Treasurys resulted from the dual fracas of the Powell subpoena and the Greenland tariff tease. So, gold holdings at current market prices have unseated Treasurys as the top reserve asset for the world’s central banks.
When asked about the dollar’s decline during his Jan. 27 not-a-campaign-visit to Iowa, Trump insisted on optimism, saying, “The dollar’s doing great.”
The same way that former President Joe Biden’s delusional insistence that near-double-digit inflation simply entrenched higher inflation expectations, worsening the crisis of Bidenomics, the dollar interpreted Trump’s optimism as tolerance for a weaker greenback. And the dollar fell a full 1.3% on Jan. 27, in its worst daily tumble since shortly after “Liberation Day,” when Trump announced his tariff regime.
Cue the perennially besieged Scott Bessent, the treasury secretary who may have an even more taxing job than “Secretary of Everything” Marco Rubio.
The morning after Trump’s greenback gaffe, Bessent reiterated the administration’s support for a “strong dollar policy.” Directly contradicting Trump’s complaint that Japan “devalues” the yen, making it “hard to compete,” Bessent maintained that the U.S. would not …
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