USD Just Continues To Crash, US-Japan Deal In Dramatic Stalemate, US Earnings Crisis Approaches
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As the trade war rages on, the US dollar is still under tremendous pressure. The dollar index has fallen to a three year low which just enourages more asset dumping. Meanwhile, the US-Japan trade negotiations have stalled with Trump indicating he isn’t happy with the defense deal. Meanwhile, small businesses in the US are facing an earnings collapse from the tariff war.
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Timestamps & Chapters:
0:00 US Dollar Still In Crisis
3:24 Why USD Demand Is Falling
6:13 US Japan Deal Stalemate
9:11 US Businesses Earnings Crash
12:44 Bigger Market Sell-Off Risk
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44 Comments
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ššš and in my country still belief USD will going up… Sure but it will crash hard eventually
He need's to change course, if not things will get worse.
The "fault" I see is that you are projecting in relation to the best "connecting the dots" for "the financial perpetual motion machine" / "Ponzi scheme" economy Trump 2.0 inherited.
Your"Tik-Tok" toys business – generates all this domestic activity from a"tiny little " import – this is exactly my visualised image of "a service economy". I conjectured this, but what you show is the first time I have seen it articulated.
You are an economic thinker.
See this from a manufacturing / "make it happen" person's point of view. Right… Then you see all the problems this"import addiction " has caused. For a start – almost no Trade / vocational training. Not needed in a"service economy ". But reality all hits home badly when you"play Russia into a war you can then 'wipe them out for ' and you find yourselves impotent and 'wiped out'".
Something has gone very wrong. Totally predictably – this is where the"service economy " dream of 40 and 50 years ago leads…
Time for Japan to pivot to China
š all i know is US is going on with their lives and China is revolting. That should speak volumes who itās backfiring on
Tbh i was afraid to go to the store to shop for a an Easter get together with my family. To my surprise everything was much cheaper than i expected and I live in an expensive state. Then i read in China is revolting, jobs lost and factories are closing. Itās hard to believe that China has the upper hand.
another bank collapse, another bailout, another financial crisis looming., with uncertain times, a volatile market, and banks gradually failing, I'm aiming for a retirement fund of around $2M and have a solid six-figure amount ready. Are there any opportunities left for someone like me, a boomer, to make this work?
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nything
Who do foreign bound holders sell their assets too? Who would want to buy a falling commodity? Some analysts say we are watching in real time the plan to crash the dollar?
Trump's goal to weaken the USD is working. Next is to remove the USD as the reserve currency and to use something other than SWIFT for international trade settlements. Maybe Euro as reserve currency? Probably not perfect but good enough.
If china produces goods.. why can't they have their own plane .China wanted Europe to crash… open your eyes. Cheep duplicate come from China.. Cheep does not mean real. China maker of garbage
Please donāt say āreciprocal tariffsā please say āpunitive tariffsā instead.
who would want to travel to a fourth world country
The fall of the dollar will increase,as the world Sobers up to the true agenda of Trump and his hand selected unqualified for the job advisers.
Japan & S Korea have a choice to make side with 4.5% of the Worlds population or go with the other 95.5% of the Worlds. I for one whether it is Samsung, who i have supported my who adult life, will no longer by product from companies that choose aMerica, there is no end of excellent Chinese Phone, and will extend it to phones with chips from TSMC.
As a non-aMerican i will start buying directly from the Chinese market, for every thing i need.
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Why he is even speaking.
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Let the world Dump every Bond and let us see; They can't because, all Reserves will fade away making them even poorer.
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Maybe, if the manufacturers had thought about keeping the producing here in the US, where we had jobs, instead of only thinking about how to make more money for the board of directors, we wouldn''t be in this position. Just saying š¤
The United States is rapidly losing its allies. Foreign investors are pulling out of the United States, and the US treasuries bonds are no longer considered a safe investment, as the current situation cannot be compared to previous trade wars and crises on the stock market. The reason is that Trump is erratic and increasingly perceived by the rest of the world as a dictator (in Europe many call Trump 'the Mad King' and compare him to Hit-ler). America's current isolationism has led to the rest of the world now perceiving the USA as unreliable and a real threat to both the world economy and security. Trump has aligned himself with Putin and other dictators, and his betrayal of Ukraine is also a betrayal of Europe. He has also threatened Canada, Denmark and Panama with annexation (which would be an act of war against sovereign nations). The trust is gone (also due to Trump's recent market manipulation/insider trading and violation of trade agreements), and Western democracies (Japan and South Korea included) are now building new alliances, outside of the US. Consumers in Canada, Mexico and Europe have begun to boycott US products and buy locally (or from trusted allies). As a result, Tesla is crashing, and as Musk is perceived to be a na-zi and possible Russian asset the trust in Starlink and SpaceX is also quickly vanishing. The Canadian government has begun to cancel contracts with the USA, Portugal has cancelled a big F-35 fighter jet deal and other countries will follow suit. China will not 'blink first' and let the US bully them into submission. The trade war will hurt American consumers (who are paying for the tariffs) and businesses the most, as the prices will go up and the sales go down. Also; major players have begun dumping US treasury bonds to buy gold. This leads to higher interest rates, which will in turn increase the US deficit. The US dollar will as a result be de-valuated and eventually replaced as the world currency (de-dollarization), and the US will probably soon enter a recession or depression.
Silver is the new Gold..š¤«
hi ChatGPT, would it make sense to switch from the USD as an international trading currency to an independent trading currency?
This is a really exciting and complex question. Whether it would make sense to switch from the US dollar as an international trading currency to an independent trading currency depends heavily on whose perspective you look at it from – and how you define "independently". Here is an overview of the most important arguments:
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Why you want to get away from the US dollar:
1. Concentration of power in the United States
The dollar dominates world trade (e.g. Oil, raw materials, SWIFT system). This gives the USA great geopolitical influence ā e.g. By sanctions or control of cash flows.
2. Financial dependence
Countries that hold a lot of dollar reserves or have debt in dollars are dependent on US monetary policy (e.g. B. interest rate hikes of the Fed ā capital outflows, exchange rate problems).
3. Risk of dollar volatility
Exchange rate fluctuations of the dollar can have a big impact on global trade and prices, even if countries themselves do not trade much with the US.
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Why the dollar (so far) remains:
1. Trust and stability
The dollar is considered a safe haven because the US economy is large, transparent and relatively stable. A new currency would first have to build up this trust.
2. Liquidity and infrastructure
The dollar dominates the financial markets ā from bonds to commodities to loans. The network of banks, trading platforms and institutions is extremely pronounced.
3. Lack of alternative
The euro, yuan or gold have been discussed as alternatives – but they all have weaknesses (political, economic or structural). A "neutral" currency such as a digital currency basket (e.g. Special drawing rights of the IMF) would have potential, but is difficult to enforce.
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Independent trading currency ā useful?
Theoretically:
Yes ā a neutral, international trading currency (such as an IMF-controlled digital currency or currency basket) could:
⢠Reduce political dependencies,
⢠Promote global stability,
⢠Create fairer trading conditions.
Practical:
Extremely difficult. There would have to be a global agreement, huge infrastructure would have to be built and trust would have to be created – and many countries (esp. the USA) would have to hand over power.
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Conclusion:
Makes sense? From the point of view of many countries: Yes.
Feasible? Only in the long term, with political will and international cooperation. In the short to medium term, the dollar is expected to remain dominant.
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If you want, I can also show you a thought experiment or scenario of what such a new world currency could look like – or what it would take to make it a reality. Interested?
Your analysis are tricky to criticize. They are common sense and correct but short sighted. I remember a while ago you were all over the weak yen. Pointing out that theres no room for a rate hike and that the yen was doomed. Well, it made sense but for some reason that's not what happened. The yes is at 140 today and rates didn't have to go much higher. Now we are talking about the dollar plummeting in value. So what's what? Why isn't the yen at risk anymore? You know, in the end it's jusy fear mongering. Buy gold is the only win so far. Let's see if it will hold.
Tariffs were brought in to collapse the US dollarā¦no suprise
Fuck China. The United States is the best country in the world and siding with China is the dumbest move a country can do.
Trump's zionist team will definitely get the Nobel prize
US becoming a Latin American dictatorship it is not surprising š¢
The US dollar index is insane. Here is the actual math….It is a weighted geometric mean of the dollar's value relative to following select currencies:
Euro (EUR), 57.6% weight
Japanese yen (JPY), 13.6% weight
Pound sterling (GBP), 11.9% weight
Canadian dollar (CAD), 9.1% weight
Swedish krona (SEK), 4.2% weight
Swiss franc (CHF), 3.6% weight
Who is stupid enough to believe this tells you anything about the dollar's strength? What value do any of those currencies offer?
Japan isn't paying the US for protection, they are paying for military occupation. The chances of Japan coming into military conflict with China is significantly higher with US military stationed and operating out of Japanese facilities, as China may have historical enmity with Japan, but does not have designs on harming or taking from Japan. The US clearly has interest in conflict with China, and anyone saddled with a US military presence is a victim of happenstance. As it stands, the US has already proven how loyal they are to their partners in NATO. With friends like that, who needs enemies. Japan could easily manufacture their own nuclear deterrent once they get rid of the burden of the US military, and could more smoothly navigate their political and economic cooperation with their neighbours.
I like that you included the small business owner.
Orange š might be happy to destroy the American economy š¤. It is not likely that the Japanese Federal government wants to destroy the Japanese economy.
The world needs a bad guy to blame for their own problems. Europe is well known for union labor wage protests….that had zero % due to with the US. And yet your being told that this time it's Trumps fault.
I seen 2 chinese girls eating out of a gabage can , and enjoying it , talk about that please
Let's talk facts all your countries talk a big game but we see to all these countries are running to trying to make deals lol China couldn't make a deal with someone if they want to they can't even with their close allies LOL no One trust China they use crooked tactics for years now and it's funny how other countries come to defend them when they also complain about China too. LOL. Make your mind up. You should be Happy someone is doing something none of your leaders have the stones to do That's why we're the greatest country in the world.
I disagree with this assessment. The US needs to get rid of both the IRS and the Federal Reserve, both of which were illegally operated by the Bank of England to become the controlling factor of America's economy. They now claim (and lie) that no one owns the Fed because they know it's an unconstitutional bank. Fortunately, Trump's plan will push the Federal Reserve into a scenario where it cannot fulfill its legal obligations. Americans will then realize how evil the bankers were to create the Fed while its being dismantled. We may replace the dollar, BUT foreign control of our economy is coming to an end.
America need wake up call if gonna last as long as China. China been around establish longer than America was stolen and plunder. American's gave up it rights to work and be honest day workers when your government was getting filled with Mobster and gang members. Living real free lives while rest you work hard and dying for manipulated converted and Doctrine we the people as mobs with pitchfork and torches as worker looking down other that don't work but praise mafia and as father raise future soldiers who didn't get chance to be his own father and dream a full life. America was test bed can people of different background work together achieve the impossible it lost it way and the American dream probably got sold on a dying bed man choice. You know when God Feared Men it was when We work together build The Tower of Babel. If would take Tower of Babel to now are times Tower could resemble ISS space station maybe we do build the space Elevator tower to make easier to get in space. I say build the future Tower of Babel it communication station a space port it can be many things for future. Sound crazy I know I look At the bible as someone doesn't believe god the bible is blueprint for the future build and technology. America long way to go and gonna trip because Karma a Bitch Can't kill so many still expect to be Hero of the world. World domination by force bomb bullets and influence of god only America. Can't sustain like that forever. Love peace Unity Progressive With We the people at heart not a god but actual everyday people you can see smile and say have a great day and live in peace. It weird these time are about Destruction when back in the day was about Creating. Hopefully we can get back too Progressive Creating society. Sorry for word scramble. I like your channel you give facts what actually makes world go around and seeing who putting more that actually help people around the worlds or destroy them. Thank you braking it down for someone no clue about the market. Beside me eating less and paying more.
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We understood Trump is ending consumerism or materialism ,because the profits are being misused by CPP . End of made in China We will adjust our life style.
Itās crazy to even think about the dollar collapsing, but honestly, with everything going on debt levels, inflation, international tensions, it doesnāt seem that far-fetched anymore. If it did collapse though, itād change everything, global trade, savings, investments, all of it
The fact that tourism alone could drag GDP by $90B this year says everything. We're literally pricing ourselves out of the global economy 25% tariffs passed on to tourists, boycotts, detention horror stories… itās not just policy, itās perception. And that perception is bleeding into our wallets. Fewer tourists = less dollar demand = weaker currency = more inflation. Itās a feedback loop, and nobodyās hitting the brakes.
Thanks @SeanFooGold for explaining the workings of finance and markets in a clear and understandable way. I have been really trying to up my knowledge of how everything fits together amidst the current chaos and you are really helping me put together the big picture.
Warm greetings from Wyoming! š¤
Itās ok, US should raise tariffs on China to 4,000% and keep it there for 4 years
With the dollar crashing under 100, itās wild how many people are just ignoring it. Inflationās creeping in, foreign moneyās leaving, this hits everyoneās wallet eventually.
Isnt it more likely to get a corrupt leader when they can cash out from their 4 year job and rest for the rest of their life. While one strong leader gives its life time.
The new King of America thinks he is the King of the world. As a Canadian, GFYS trump, you don't rule over Canada, or the world.
Go anywhere, buy anything, except American!