Why the US dollar's supremacy might be in real trouble this time
WBFF • • business
Key Points:
- Economic volatility, U.S. sanctions, and tariffs are prompting investors and some European officials to seek alternatives to the U.S. dollar, traditionally a safe haven currency for decades.
- Gold and silver have attracted investor interest recently, while Bitcoin, once considered a digital safe haven, has fallen nearly 50% from its peak and moved in tandem with riskier assets, undermining its safe-haven status.
- Concerns over the Federal Reserve's independence, rising national debt due to tax cuts, and increasing interest costs are contributing to expectations of a weakening U.S. dollar in the coming months.
- Foreign holdings of U.S. treasuries have declined since the introduction of tariffs, with China notably reducing its holdings and increasing gold purchases, signaling
