The Dollar’s Collapse Has Begun

We noted in this morning’s Swan Dive that the U.S. dollar is down 8% year-to-date.

For the world’s reserve currency, that’s a massive move – and a major warning signal that is drowned out by cheering stock investors right now.

Consider what happened to the last world reserve currency, the British Pound.

A century ago, the whammy of World Wars and the Great Depression meant that the U.K. had a high trade deficit and a massive amount of debt, much like the U.S. today.

So they devalued. Here’s what happened next:

Turn Your Images On

The U.K.’s dominance ended with the Great War. But it still took decades for the loss of that dominance to be fully felt. There was no one single event or day where it

It’ll be the same way with the buck. Death by a thousand cuts.

-Addison

We noted in this morning’s Swan Dive that the U.S. dollar is down 8% year-to-date.

For the world’s reserve currency, that’s a massive move – and a major warning signal that is drowned out by cheering stock investors right now.

Consider what happened to the last world reserve currency, the British Pound.

A century ago, the whammy of World Wars and the Great Depression meant that the U.K. had a high trade deficit and a massive amount of debt, much like the U.S. today.

So they devalued. Here’s what happened next:

Turn Your Images On

The U.K.’s dominance ended with the Great War. But it still took decades for the loss of that dominance to be fully felt. There was no one single event or day where it

It’ll be the same way with the buck. Death by a thousand cuts.

-Addison

Progressives learned long ago that you don’t have to win an argument if you can simply redefine the words.

Regardless of what’s happening in stocks, the same long bond can be a good buy for a retiree and an expensive obligation for everyone else.

The same uncertainty driving investors out of speculative assets is sending them toward dollars and Treasury securities.

Behind the drama unfolding at Nvidia, Big Tech is borrowing to keep the AI buildout chugging along just as the Treasury needs trillions.

Progressives learned long ago that you don’t have to win an argument if you can simply redefine the words.

Regardless of what’s happening in stocks, the same long bond can be a good buy for a retiree and an expensive obligation for everyone else.

The same uncertainty driving investors out of speculative assets is sending them toward dollars and Treasury securities.

Behind the drama unfolding at Nvidia, Big Tech is borrowing to keep the AI buildout chugging along just as the Treasury needs trillions.