We almost (might have) lost reserve currency status

[Anonymous]

Anonymous wrote:So, trying to understand: Trump was fine with the market crashing as long as it was a vehicle to bring rates down, by way of getting people to invest in traditionally safe bonds. (The ultimate goal likely being tax cuts.)

The working assumption was that bonds would never be anything but safe.

But in a sign of how much credibility Trump has lost, bonds were not, in fact, safe — the bond market itself was tanking. So he backed off, sort of, but now we know something important that we hadn’t: The world no longer considers the US a safe place to put any money.

Do I have this right?

Yup.

From Bob Woodward’s The Agenda (1994)

[Anonymous]

Some of you might not like it but started to accelerate with sanctions of Russia and confiscation of Russian assets.
Instead of the dollar being seen as neutral reserve currency in sent a strong signal no body is safe to China and rich middle eastern countries.
The BRIC nations started accumulating gold and started trading in their local currency.
It was like shooting ourself in the foot and with tariffs Trump is accelerating the decline.

[Anonymous]

What do you think happens when the US dollar becomes non reserve currency ?

[Anonymous]

Anonymous wrote:Reserve currency was already on the way out. Trump just threw some more fuel on the fire. The real issue was the sanctions we put on Russia and others that lead to a wave of de-dollarizing.

Correct. Now Trump is threatening countries not to drop the dollar, but the damage has been done.

[Anonymous]

The interest rates are up because China is dumping its treasuries, trying to put pressure, and also buying up stocks to prop up its market.

With China's yuan dropping in value, and some other currencies as well, people will have to buy bonds to protect their money.

[Anonymous]

The U.S. dollar's days as a reserve currency were numbered from the moment the Biden Administration weaponized it by seizing Russia's dollar reserves (basically telling Russia "the dollars you have aren't any good anymore until we tell you they're good").

No sane country -- certainly not the powerful countries like China, India, Saudi Arabia, Brazil, etc., would ever count on U.S. dollars being a reserve currency after that move.

This doesn't mean the end, though. A country doesn't need to control the international reserve currency to be wealthy and successful. It's just going to be different from now on. Prepare accordingly.

[Anonymous]

Anonymous wrote:The U.S. dollar's days as a reserve currency were numbered from the moment the Biden Administration weaponized it by seizing Russia's dollar reserves (basically telling Russia "the dollars you have aren't any good anymore until we tell you they're good").

No sane country -- certainly not the powerful countries like China, India, Saudi Arabia, Brazil, etc., would ever count on U.S. dollars being a reserve currency after that move.

This doesn't mean the end, though. A country doesn't need to control the international reserve currency to be wealthy and successful. It's just going to be different from now on. Prepare accordingly.

Don’t break international law by invading another country and your dollars are fine.

[Anonymous]

Anonymous wrote:The U.S. dollar's days as a reserve currency were numbered from the moment the Biden Administration weaponized it by seizing Russia's dollar reserves (basically telling Russia "the dollars you have aren't any good anymore until we tell you they're good").

No sane country -- certainly not the powerful countries like China, India, Saudi Arabia, Brazil, etc., would ever count on U.S. dollars being a reserve currency after that move.

This doesn't mean the end, though. A country doesn't need to control the international reserve currency to be wealthy and successful. It's just going to be different from now on. Prepare accordingly.

How?

[Anonymous]

Anonymous wrote:The U.S. dollar's days as a reserve currency were numbered from the moment the Biden Administration weaponized it by seizing Russia's dollar reserves (basically telling Russia "the dollars you have aren't any good anymore until we tell you they're good").

No sane country -- certainly not the powerful countries like China, India, Saudi Arabia, Brazil, etc., would ever count on U.S. dollars being a reserve currency after that move.

This doesn't mean the end, though. A country doesn't need to control the international reserve currency to be wealthy and successful. It's just going to be different from now on. Prepare accordingly.

Of course it’s BIDEN’s FAULT. He’s the 42 for every Republican problem.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I know we have a lot of tariff threads. I’m shocked more people are not aware or are talking about why Trump reversed course.
His tax cuts!!!

When the markets tanked on Wednesday two crazy things happened, one item was particularly bad.
Normally during market crashes there is a “flight to safety” to US Treasury bonds. That causes rates to go down because there is so much demand.

Instead rates went up, meaning no one wanted US Treasuries because the finance bros didn’t feel the US was safe!

This is something Trump talked a lot about, slowing the economy to refi debt at lower rates….. the exact opposite happened in real time. Rates went by 1% which is massive.

That lack of flight to safety means, the US was no longer the world’s currency.

That also means rates were going to spike and the 1T tax cut would not pass. Meaning Trumps signature legislation would not have passed. I see all the market manipulation threads and posts, but the real story is the failed treasury auction.

That means higher rates for CC and mortgages.

I know people only look at the stock market or sensational stories…. But the real story is the US might have lost our reserve currency status and worst of all our President proved his priorities (tax cuts) and that he was weak…. We might not recover from liberation day.

This should not be a political discussion in a political thread, but it should scare everyone!

I agree, OP. Trump has really screwed the US

Actually, Biden screwed us. He used the dollar as a weapon against Russia for its invasion of Ukraine.

Now other countries are taking note and re-evaluating if they want to hold the reserve currency that can be weaponized against them anytime they cross the U.S.

Sorry to be the bearer of bad news to you. You democrats were told this might happen when you did it, but it felt so good then, huh?

[Anonymous]

Anonymous wrote:What do you think happens when the US dollar becomes non reserve currency ?

Take a guess

[Anonymous]

Anonymous wrote:Trump and MAGA are morons. They suck.

Yet MAGAs think this is all a game of 4D chess that the rest of us don’t understand. Entire generations of future researchers can write theses on this cult.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I know we have a lot of tariff threads. I’m shocked more people are not aware or are talking about why Trump reversed course.
His tax cuts!!!

When the markets tanked on Wednesday two crazy things happened, one item was particularly bad.
Normally during market crashes there is a “flight to safety” to US Treasury bonds. That causes rates to go down because there is so much demand.

Instead rates went up, meaning no one wanted US Treasuries because the finance bros didn’t feel the US was safe!

This is something Trump talked a lot about, slowing the economy to refi debt at lower rates….. the exact opposite happened in real time. Rates went by 1% which is massive.

That lack of flight to safety means, the US was no longer the world’s currency.

That also means rates were going to spike and the 1T tax cut would not pass. Meaning Trumps signature legislation would not have passed. I see all the market manipulation threads and posts, but the real story is the failed treasury auction.

That means higher rates for CC and mortgages.

I know people only look at the stock market or sensational stories…. But the real story is the US might have lost our reserve currency status and worst of all our President proved his priorities (tax cuts) and that he was weak…. We might not recover from liberation day.

This should not be a political discussion in a political thread, but it should scare everyone!

Yup a lot of people are just walking around with their eyes wide shut-this administration is scary. Pay attention-they are trying to distract everyone with the craziness and people are missing the big things.

What can most of us even do about that stuff though? We don't even have representatives in Congress here in D.C.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I know we have a lot of tariff threads. I’m shocked more people are not aware or are talking about why Trump reversed course.
His tax cuts!!!

When the markets tanked on Wednesday two crazy things happened, one item was particularly bad.
Normally during market crashes there is a “flight to safety” to US Treasury bonds. That causes rates to go down because there is so much demand.

Instead rates went up, meaning no one wanted US Treasuries because the finance bros didn’t feel the US was safe!

This is something Trump talked a lot about, slowing the economy to refi debt at lower rates….. the exact opposite happened in real time. Rates went by 1% which is massive.

That lack of flight to safety means, the US was no longer the world’s currency.

That also means rates were going to spike and the 1T tax cut would not pass. Meaning Trumps signature legislation would not have passed. I see all the market manipulation threads and posts, but the real story is the failed treasury auction.

That means higher rates for CC and mortgages.

I know people only look at the stock market or sensational stories…. But the real story is the US might have lost our reserve currency status and worst of all our President proved his priorities (tax cuts) and that he was weak…. We might not recover from liberation day.

This should not be a political discussion in a political thread, but it should scare everyone!

I agree, OP. Trump has really screwed the US

Actually, Biden screwed us. He used the dollar as a weapon against Russia for its invasion of Ukraine.

Now other countries are taking note and re-evaluating if they want to hold the reserve currency that can be weaponized against them anytime they cross the U.S.

Sorry to be the bearer of bad news to you. You democrats were told this might happen when you did it, but it felt so good then, huh?

Lol, ok Ivan. The countries that are "taking note" are the countries that wholeheartedly supported the isolation of Russia. You know, our former allies and friends that we declared a trade war on, threatened annexation, and repudiated our mutual defense agreements.

Russia is a nobody country and nobody likes or trusts them besides the Clown in Chief. Colombia and Vietnam are way more important both to us and the entire world.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I know we have a lot of tariff threads. I’m shocked more people are not aware or are talking about why Trump reversed course.
His tax cuts!!!

When the markets tanked on Wednesday two crazy things happened, one item was particularly bad.
Normally during market crashes there is a “flight to safety” to US Treasury bonds. That causes rates to go down because there is so much demand.

Instead rates went up, meaning no one wanted US Treasuries because the finance bros didn’t feel the US was safe!

This is something Trump talked a lot about, slowing the economy to refi debt at lower rates….. the exact opposite happened in real time. Rates went by 1% which is massive.

That lack of flight to safety means, the US was no longer the world’s currency.

That also means rates were going to spike and the 1T tax cut would not pass. Meaning Trumps signature legislation would not have passed. I see all the market manipulation threads and posts, but the real story is the failed treasury auction.

That means higher rates for CC and mortgages.

I know people only look at the stock market or sensational stories…. But the real story is the US might have lost our reserve currency status and worst of all our President proved his priorities (tax cuts) and that he was weak…. We might not recover from liberation day.

This should not be a political discussion in a political thread, but it should scare everyone!

I agree, OP. Trump has really screwed the US

Actually, Biden screwed us. He used the dollar as a weapon against Russia for its invasion of Ukraine.

Now other countries are taking note and re-evaluating if they want to hold the reserve currency that can be weaponized against them anytime they cross the U.S.

Sorry to be the bearer of bad news to you. You democrats were told this might happen when you did it, but it felt so good then, huh?

Sure, Trump has nothing to do with it. You people are sick.