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Dollar No Longer Safe Haven

Discussion in 'Too Hot for Swamp Gas' started by G8trGr8t, Mar 29, 2025 at 7:13 PM.

  1. G8trGr8t

    G8trGr8t Premium Member

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    this indicator is not a good one

    as the world flees the US market and seeks safety, the all might US dollar is no longer considered a safe asset

    no worries, we have a meme coin in our treasury now, all is good

    As Trump Sinks Dollar, Once-Unthinkable Worry Grips Markets

    The dollar, long a go-to hiding place during market selloffs, wasn’t rallying this time as investors rushed for safety. It was sinking, too, and fast as hot money poured into gold, the yen, European stocks — almost anywhere but the US.

    “It’s unusual and very telling,” said Sidawi, who helps oversee bond investments at the firm. “The dollar, in an environment where it should be acting like a safe haven, is not.”

    That, as with so much of the volatility that has whipsawed global markets recently, has a singular explanation: President Donald Trump.

    Just two months into his second term, his escalating tariffs and bid to roll back decades of globalization is shaking confidence in the US currency — which has had a privileged place at the heart of the world financial system for eight decades.
     
  2. G8tas

    G8tas GC Hall of Fame

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    #TrumpsAmerica
     
  3. uftaipan

    uftaipan GC Hall of Fame

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    Is the argument here that the dollar is no longer the world’s reserve currency? If not, then what is?
     
    • Come On Man Come On Man x 1
  4. l_boy

    l_boy 5500

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    No. That is not it. “Safe Haven” is an informal term to indicate where money goes during times of uncertainty. These are assets that are considered low risk. US treasuries / US dollar are typically where money flows when there is global uncertainty.

    At this point most of the uncertainty is with the US, and Trump has called into question all of the things that historically have made the US perceived as safe - both from an economic and political perspective. For all the infighting and noise the US has always adhered to the US constitution, rule of law, and norms.

    Trump is quite literally trying to tear it all down because in the past it has been a threat to him from doing whatever he wants. Now based upon your recent posting I’m sure your perspective is “oh this is all silly everything will be fine”. Maybe that’s true, maybe that isn’t but the dollar falling in this instance is likely a sign is that at least some are hedging their bets that everything will be fine with the US.
     
    • Winner Winner x 2
  5. SotaGator

    SotaGator All American

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    Why do the sitting president, his advisors and cronies want to crash our financial system? WHY?

    This chaos only helps BRICS nations become more powerful and influential.

    What the heck? Is this administration really this stupid?
     
    • Like Like x 1
  6. l_boy

    l_boy 5500

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    Yes.
     
    • Agree Agree x 1
  7. G8trGr8t

    G8trGr8t Premium Member

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    Because they shorted it? Because that's what our enemies want and they have convinced him it will make him famous for reshaping us economy?
     
  8. gatorrob87

    gatorrob87 GC Legend

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    All the Trump-ets at work keep blowing on how the tariffs are a bluff, that this is the great negotiator playing 3D Chess with our best trading partners and other Faux News Network talking propaganda points. Meanwhile, he’s painting the stock market red, driving inflationary pressures, reducing the access of goods to market, tanking their 401ks, adding taxes to products we sell, which at some point will cause our business to look at cutting costs in order to make up for revenue loss(job cuts, maybe theirs)…yet they can’t connect the dots and continue to hero worship. Insane.
     
    • Agree Agree x 1
  9. gator_jo

    gator_jo GC Hall of Fame

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  10. G8trGr8t

    G8trGr8t Premium Member

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    MAGA - tell me how it will be all okay
     
  11. slocala

    slocala VIP Member

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    It won’t be ok. The Admin has been fairly open about pain. It’s at the peril of everyone to be passive in the current economic conditions and hope for the best.