The Greenback has really outlived it’s purpose as world reserve currency because the government and central bank can’t be trusted with fiscal discipline. It may improve post Trump
I fear the dollar will drop so precipitously Trump will be “forced” to make TrumpCoin our official currency [forced on purpose], like a shitty version of EU’s proposed digital currency
That would be truely outrageous. Luckily he can’t do that.
I understand, but at this point I don’t trust that line of reasoning. If he want to do it, he will.
Who is going to stop him?
The Executive can’t take over the monetary decisions of the country, even if the monetary decision is to replace the currency with one the executive just happens to control and put out as private party. Congress is the one with the power to tax, spend, and create money per Article 1.
The rupee drops more for some reason
Ah yes, the “Biden economy” at work. 🙄
Have we already reached a tipping point for the USD as a reserve currency?
If not will this make that happen?
Because the real “shit hits the fan” moment will be when the rest of the World dumping USD assets (most notably, Treasuries) starts snowballing as those still holding assets valued in USD start getting hit by dollar devaluation due to others having dump USD assets, pushing them to sell dollars and dollar-denominated assets to avoid further losses.
Given just how large of a fraction of their currency is held by foreigners, a snowballing aversion to holding dollars is the kind of thing that can result in hyperinflation in the US.
How do I make money from this?
Probably by hoarding some USD. Financial advice on Lemmy works pretty great if you do the exact opposite of what the highest upvoted people are suggesting.
This place is the opposite of accurate information when it comes to global finance.
That’s a surprisingly more complex question that it seems.
Which money? Dollars, Euros, Yen, something else?
Unless you’re a professional investor, it really depends on which currency you spend for your day to day or big ticket items.
So first I’ll answer a slightly different but related question: “How do I protect myself from this if I’m American?”
- Move your savings/investments to assets which are not denominated in USD (for example, stocks in a non-US stock exchange), open a bank account which is not in USD (I believe that’s possible in some banks in the US) and convert your savings to that currency and deposit them there, buy Gold (thus in practice converting you savings to a ancient currency not controlled by any state). That is, if you have savings. If you don’t, well, you’ll mostly have to weather it: concrete non-perishable stuff has the same utility value no matter what the dollar value is, so your home is your home (if you’re lucky enough to own it) thus its worth to you is the same whatever it’s supposed dollar value is, and as others said “canned goods and cigarettes” too keep their value no matter what the USD value says.
As for how to make money from it, as somebody else said, “forex gambling”, more specifically derivatives on cross-currency pairs such as Futures on USDEUR. However that stuff is risk: Will USD hyperinflation really happen or will it be something milder? When will it happen, precisely? Derivatives move like crazy and things like Futures can result in margin calls (basically you have to give them more money) if they move against the direction you’re betting,
Back when I lived in Britain I avoided the 20% crash of the British Pound from the Leave Referendum results by having most of my savings in Gold and Euros, so in pounds it could be said I made a 20% profit in a couple of days (basically the week when the results came out), though now I’m in the Eurozone and, not even being a Briton have no relation to that country and don’t actually care about about the value of my savings in British Pounds, so that week I didn’t really made any profit in Euros. That said, over the years (the money is still there) that investment in Gold has gone up in value quite a lot even in Euros.
That said most of it was the product of me simply distrusting Britain and the British Pound as a safe store of value hence already keeping a big chunk of my savings outside it, though I did move some more just before the Leave Referendum results came out just in case.
So in summary: just getting your savings out of the USD merely to another currency will protect them, whilst Gold over the long term will probably make you a bit of profit (certainly in USD due the mismanagement of the US Economy). Big profits can only come from forex gambling, but so do big losses as derivatives are much more risky that just holding the underlying assets (in this case, some foreign currency you bought with dollars).
Nice write-up, but I’m not American, never been there, have no wealth in USD. How do I make money then? Derivative-shorting the USD somehow? But as others have mentioned, the descent is unpredictable.
In that situation I can only think of derivative shorting of the US as a way to directly make money from it.
Indirectly, maybe bet in gold to reap gains from the global environment of uncertainty in the safety of modern currencies that will surely come with a USD crash (that’s basically how I’ve positioned myself since a few years after the 2008 Crash - having concluded that the whole “saving of the Economy” after it wasn’t fixing any of the problems, just delaying the consequences - and that has yielded in EUR a return of about 400% in a bit over a decade, especially in the last 5 years).
One might also bet in currencies most likely to gain from the end of the US and USD dominance, the greatest of which IMHO is the Chinese Yuan, but how you would go about doing it, I don’t know.
Maybe I can just buy the dip later? Or will the USD go the way of the mark?
When the USD stops being the world’s reserve currency, it will never recover its previous value because it will never again have such a status and the worldwide demand for a currency that comes it it, so in broad terms it won’t be a “dip”.
Sure, it will overshot its final value (big market movements always do) so there will be a local dip at the bottom, but even if one can actually time it right (good luck with that) whether one can profit from it or not also depends on whether it actually caused hyperinflation and how the authorities deal with it - those things tend to be confusing and involve things like emission of a new currency or other non-orthodox measures as seen in Germany’s, Zimbabwe’s and several Latin American country’s historical situations of hyperinflation.
More in general and if you look at other markets, a run on an asset (say, a stock whose price is crashing) usually breaks the market for it (for example, in the 2008 Crash Bear Stern’s stock value collapsed and the whole company ended up being bought by another bank for $1), so I wouldn’t bet on the usual market rules applying to a USD during a period of hyperinflation.
I suppose if you’re just using something that mirrors the asset rather than being the asset, such as a derivative, you might be able to take advantage of the local dip at the bottom.
Put most of your US dollars into non-US currencies or valuables, such as cigarettes, canned food, or gold.
Back in the Weimer Republic, outsiders from France and other countries would regularly cross the German border to buy food, carouse, or to buy up things like grand pianos for their version of $100. America’s middle class may have most of their belongings ending up in Canada and Mexico.
Forex gambling
Somehow, even while blaming tRump for their plight, Republican voters will continue to support tRump, even as they lose everything they and their family have. It’s so fucked up!
Why are we typing Trump as tRump though?
He let them use the n-word again without getting embarrassed. That’s what they love him for.
I’ve personally been using it like that for my entire freelancing career of over 20 years. Not since last year though. I’m not staying on a sinking ship.
Back when I lived in Britain working as a freelance ITer in the Finance Industry, after the 2008 Crash and from pretty much a front seat seeing how the authorities there managed the whole thing I lost trust in Britain and the British Pound to safely hold my savings, so kept moving any money I saved out if it, first to Euros (as I was an immigrant there and still had a bank account abroad) and later also to Gold.
Fast forward a few years and when the Leave Referendum results came out and the British Pound tanked 20% in a week, I had only about £2000 in British pounds, having even moved most of the leftovers of my savings out of the pound before the results came out “just in case”.
So my own anecdotal experience is that when a country’s economic and social stability starts showing cracks whilst the politicians in power are mainly concerned with their own wealth and that of their mates, it’s best to at least move a fraction of one’s savings out of that country’s currency, possibly even out of the country itself (I did both, though my situation was unusual in that as an immigrant in Britain I naturally had a bank account outside Britain).
Why would Sleepy Joe Biden do this? 🤷
It wasn’t just Joe, it is the whole Biden crime family including Hunter and his evil Laptop.
I think you’ll find it’s a big beautiful drop. A tremendous drop. Everyone is saying it’s the best drop ever!
Y’all remember dollar menus at fast food places?
I remember a sack of potatoes costing 1.50. I remember rent costing 450. I remember chicken being less than 1 dollar per lb. I can even remember when healthcare and higher education was a reasonable price. But hey! At least the rich are getting richer
It really pisses me off how expensive Taco Bell has become when they have always served low quality cheap food.
True, but it’s still the cheapest fast food place.
and dollar per gallon gas
Which is what got us into the whole climate mess. Pollution being too cheap
Polluting is essentially the only free thing left.
I was able to get gas for near $1 after the 2008 financial collapse at a Rutter’s somewhere in eastern PA. It was amazing.
yeah but the real price you paid was being in Pennsylfuckingvania
What the fuck is up with the beer laws there? I had to stop overnight due to car troubles and I had to walk for like 2 miles to find a gas station to get a six pack. I saw a walk in soda cooler at Sheetz.
woah - lucky
$5 subway sandwiches.
Excuse me… “five dollar footlongs”
Y’all remember when you could get a shave and a haircut for 2 bits?
The was on the Project 2025 roadmap. Cheaper to export things when the dollar is cheaper.
The heritage foundation is an enemy of the American people
Let’s not limit it to the US
And inflates away the massive US debt.
And increases the pressure for plebs to invest
The plebs don’t have anything they could invest.
That’s quitter talk. We could be even more paycheck to paycheck, taking out more debt. Some people still selfishly hoard a month’s savings and only 5% of us take out payday loans.
Things like soybeans? They really are complete fucking idiots.
This is already being written down in the history books because of how devastating it is at home and abroad. You can look up Trump-Futanari inflation if you don’t believe me.
Hmm. Guess I shouldn’t have invested my kids’ college fund in futanari bonds after all.
Everyone knows futanari bonds are a bad idea! You gotta flip your futanaris frequently!
The US is a literal house of cards. Would love for the world to finally move away from the US dollar as reserve currency.
FAFOOOOOOO 🎊
Have the day you voted (or abstained from voting) for!
Which of the only two parties that are allowed to win don’t run up the deficit?
Interest rates dropping, prepare for inflation, and prices, to surge.
PSA for those needing the reminder: Anyone with any savings should be keeping it in a brokerage account (eg Fidelity, eTrade, Vanguard, etc). Savings accounts at banks don’t pay you anywhere near enough interest to keep up with inflation. But with a brokerage you can put that money into a managed fund, which is in turn investing it into the parts of the economy where all the value is going, returning that value to you at like 5%-20% per year. It doesn’t need to be a 401K account connected to your workplace, it can just be a standalone account with regular tax. Even after the gains tax it’s like an order more growth than a savings account and usually outpaces real inflation. Even if the fund’s holdings include things you don’t find 100% ethical, it’s likely what a bank is investing your savings account money in anyway - Just without sharing the profits with you.
What a fun game. The only way to earn interest is to fund capitalistic ventures that got us here in the first place.
The only way to earn interest is to fund capitalistic ventures that got us here in the first place.
I mean sure, but that’s what the bank does with your money anyway when you put it in a savings account.
Nah, just buy gold. Gold has consistently outpaced inflation in just about every time period as high inflation leads to a skittish market who invest in gold and cause the price to buoy. Given the current AI bubble combined with the Trump Effect on global economics, my gold investments have made a killing over the last 12 months and continue to perform really well - even with the dip over the last couple of days.
We never should have got off the gold standard.
Investing everything in one precious metal is terrible advice. It’s never going to outperform the market, it literally only helps you in the event of catastrophic market collapse, and if that happens you’re never getting it out. Even if you were somehow able to, you’d only be able to withdraw it in dollars anyway, it’s not like you have a physical pile of gold in a vault with your name on it.
Fair, and that’s why I personally have a portfolio of metals, but gold regularly outperforms inflation - especially in troublesome economic times such as we’re in right now.
Even if you were somehow able to, you’d only be able to withdraw it in dollars anyway, it’s not like you have a physical pile of gold in a vault with your name on it.
Not sure what the rules are where you’re from, but I have a literal pile of gold, platinum, palladium and silver bullion in a safe in my home. Yes, I absolutely have a physical pile with my name on it - when I decide to put a sticky note on it and write my name on it.
Why? Like even if society collapses, what are you going to do with it? You can’t eat it.
I’m hedging that society won’t collapse. You might as well ask why I bother to show up at work - if society collapses the money I earn won’t be worth anything. If I’m betting on society to collapse, I’d be investing in stocking a bunker with weaponry and canned foods. I don’t see that as being a valuable investment yet.
Ill gladly refinance my mortgage, but at what cost?
what cost?
Closing?
Depends on the lender but usually like $4-8k. It’s bet that you won’t want to change the terms of the mortgage again until your balance is lower than it would be otherwise.
That should be interesting politically, given that Pew polling showed that the top concern for Trump voters in 2024 was “the economy” and within that category, the top concern was “prices”.
The big question is whether they really mean that, and then whether they really notice what’s happening. They may just assume the old false myth that the Republicans are better at managing the economy and double down on their support. Or they may just not want to admit that they don’t care about the economy so long as the government is hurting LGBTQ+ and brown people.
Don’t worry, nothing will change, it will still be Obama’s fault somehow.
Oh, having whilst in the Finance Industry seen exactly what the Obama administration did in the aftermath of the 2008 Crash, he at the very least tilled and fertilized the fields from were this harvest is coming.
His “save asset holders at any cost and have the rest of society pay for it” approach accelerated wealth concentration, inequality growth and the destruction of social mobility in the US, which amongst other things helped Trump swindle a lot of desperate working class people to vote for him, plus also inflating a number of asset bubbles, most notably realestate.
Just because Trump is even worse doesn’t make Obama a competent steersman of the US Economy.
Did you see that audacious tan suit bruh
The euro has had the biggest gain of the major currencies against the faltering dollar, surging nearly 14 per cent to above $1.17
That’s for 2025.
Wall Street banks expect the euro to strengthen to $1.20 by the end of 2026
So 3 cent decline for the dollar for 2026, that is pretty stable if that holds.
The headline must refer to what has already happened, but then why is it “on track” instead of it being already a fact?
Or does the author not believe the Wall Street banks?Anywho I don’t believe the dollar will only decline 3 cents against the Euro in 2026.
The American economy would clearly be in declining growth already, if it wasn’t for the AI bubble. I suspect this to become clearer when job numbers for January and February 2026 are released.
The completely irresponsible federal budget for 2026 probably won’t help either, and the Trump administration is almost guaranteed to make things worse as they continue their crazy policies, with or without Trump, I don’t think that really matters much. The rest of the administration is as crazy as Trump is.
