Trump campaign to change the global economic system threatens the throne of dollar

US President Donald Trump’s attempt to redesign the global economic system, with what he sees, serves the United States, to shake the role of the US dollar as a global reserve currency in which no other currency is fought, and this is one of the foundations of his country’s superiority since World War II. This situation reflects a reality represented in the use of the US dollar in about 9 out of every ten foreign exchange transactions, and about half of the international goods trade, as it accounts for about 60% of the government reserves around the world. Washington’s dominance allows the financing of a tremendous financial shortage, and for consumers in the United States to spend more than they earn, all with financing of investors abroad who chase to acquire reserved assets in the green currency with the slogan “We trust in God”. Confidence in the US dollar, but trust in the US dollar is decreasing. In 2022, the limitations of the administration of former President Joe Biden Russia’s arrival to the currency stimulated after his war against Ukraine, the launch of a first round of currency diversification, amid an idea that prevailed that as Washington excluded the 11th economy in the world, which is a safe one? The wave of ‘major inflation’ and the rapidly weakened public financial road has strengthened the doubts about the exception of the US economy. Also read the European Central Central Central: The euro power reflects the loss of confidence in US policy recently. Random offer and then the random haven of the customs duties campaign that Trump launched last April led to a rare poor appearance in the value of the US dollar and US treasury bonds together. The US Dollar Index fell by more than 10% during the first six months of this year, in the worst performance of the first half since 1973. It seems the genius has come out of the bottle as it became difficult to combat the talks of “Selling American Origins”. Banks and brokers are monitoring an increasing demand for currency products exceeding the US dollar, and some Asian families have shrunk their exposure to US assets, saying that Trump’s fees have made the country less predictable. Competitive geopolitical powers within the Brics group, a large economy event led by Brazil, Russia, India, China and South Africa, continue their efforts to a new border payment system. Even old allies like Europe see an opportunity to erode the US dollar dominance. The US dollar competitors do not all keep this amount of pessimism. Jimmy Damon of “JP Morgan Chis and Co” said last May that the United States of America is “the most prosperous and innovative nation on the planet”, and that it is not concerned about short -short -short fluctuations in the US dollar. Treasury secretary Scott Besenter treasury tried to persuade investors that the strong dollar policy still exists, while Trump threatened to impose 100% customs fees on anyone daring to challenge it. But despite the hard line dialect, the truth of the matter remains that the greatest strength of the green currency is relative in the absence of one competitor who can withdraw its position at the top of the global monetary system. It has been reported that it is a time when the euro performs worldwide, in which the United European currency plays a greater role, but history shows that the European block is suffering to move in a coordinated way, and that its institutions to a distribution state suffer in a way that does not allow it to create strong markets that are enough to keep up with the US. Read more: A member of the ‘European Central’: the euro is not ready to compete with the dollar; The Governor of the Central Bank of China talks positively about his country as an option for those trying to stay away from the US dollar, but it is difficult to suggest that the Chinese yuan will succeed in using this shift in light of the ongoing restrictions that limit the free flow of assets to capital movement. The alternatives for the US dollar that rushed the central banks and investors to accommodate the origin of the last resort, that is, gold, but it is exhausted to retain it and do not produce a return, and are not easily used in trade or financial transactions such as the US dollar. Speculations on the alternatives for the US dollar extend to the formation and other encrypted assets, but a few outside El Salvador (who adopted the cryptocurrency as a legitimate currency in 2021) are ready to turn into anything inexplicable. Regarding other financial innovations, such as stable currencies, coded symbols that are supposed to replace traditional criticism, the priority of the US dollar can be established instead of displacing it as it connects its value to the green currency. Gold in state treasures: Who is the leader? The answer here with the absence of an imminent alternative to the US dollar is viable, playing the role of the most important currency of the world, the most likely change is to a global world. The dollar will remain predominant, but other currencies will play larger roles. Although it is less revolutionary than some pessimists, predict the full collapse of the global monetary system, the competition between currencies will have serious consequences for the solid and soft US geopolitical influence. The truth is that no one is ready – especially the Americans – really for what it means to compete with currencies in the practical application. The strong US dollar will have to abandon some of the benefits of the strong dollar system, the most prominent of which are the low interest rates, with the demand for foreign investors for purchasing bonds in US dollars. Economist Bari Aishngerine, from the University of California in Berkley, which was eel, was expanded by the US dollar, which according to the scenario of the United States withdrawal from the world scene, the US dollar’s part of the reserves of countries dependent on its safe umbrella by about 30 percentage points. According to its estimates, US interest rates can also rise by 0.8 percentage points by long term. Pesent calls on the federal to lower interest 50 basis points in September. More details here at the level of US banks, it will have to pay a higher cost to collect financing and to impose higher interest rates for real estate mortgages. The benefits of high home loans tend to delay the economy because they have less income spending for consumers on holidays, home improvements, etc. Although the weak exchange rate of the US dollar may be useful to regain trade deficit, by making US exports cheaper and more competitive and preventing the spending on higher imports, it does not serve the wealth of families. The cost of government debt will also be put under pressure by the federal government, as IT amounts to its annual deficit, which has reached a little less than one trillion dollar, by treasury bonds. In a world in which the origin of Euro or Japanese yen is stronger to attract investors, it means high cost to borrow the US government. We are already aware of this, as Treasury bond yields have multiplied 30 years since the beginning of 2022 and at some point in May last year exceeded 5%. This means that America will pay higher costs for the new loans, and more to turn its existing debt. According to some standards, the annual payments on the US government’s debt today are greater than the country on the field of national defense. Also read: The US deficit changes government bond investors in corporate debt and offers a long -term US dollar to win the lawmakers in Washington so that they do not choose between spending on the defensive field, strengthening the civil economy or tax cuts. Although doubts in the US dollar are increasing in the impact of the financial deficit, lawmakers are not yet ready to adopt austerity policies in expenses. Elon Musk has promised to deliver a trillion dollars by the SO -Nital government power management, but the discount so far has provided less than $ 200 billion. At the same time, a legislative victory for Trump, which is issuing a beautiful, great legislation as it is called, will contribute to $ 3 billion to the deficit over the next decade, according to the estimates of the budget office in the US Congress. In a world where investors continue to move away from the green currency, markets can eventually impose difficult comparison operations to reduce the deficit, similar to the imposition of social safety networks, spending of scientific research and general development, which has always stimulated innovation in areas involving huge technology and pharmaceuticals. The weak US dollar would affect the geopolitical position of America due to the least dominant US dollar. In light of a weaker currency, the military bases will become the highest maintenance costs. With the decline in the use of the US dollar in world transactions, economic sanctions will be less effective for opponents. It will also become more difficult to control the financial system in light of malicious activities, such as financing terrorism or money laundering, because flow outside the US dollarnetworks will not be visible to US policymakers. Read more: The weak dollar .. Trump’s repeated idea to strengthen America’s economy, says Josh Lipski, general manager of the “Giokonx Center” in Atlantic scores in Washington and the former International Monetary Fund Consultant: “We do not appreciate the quality of what we have. Transparency American policy makers in the financial system, to exercise the US policymakers in the financial system line with the goals of the United States of America. Currencies will develop faster if people are looking for them, and that is the lesson we have taught from capitalism, “says Lipsky. Also read: Daniel Moss: The “King Dollar” period looks so far. The global economy today centered on financing and more intertwined compared to the last major structural transformation in the global monetary power. The position of the US dollar previously faced decisive tests, but it could have abandoned the dollar in 1971, and imposed an import fee, including France, to exchange dollars with precious metal rods, in a move that the Monetary Crisis first agreed in the first time. Millennium also raised questions about whether the United States is still worthy of a basic angle of the global monetary system. Instability, with investors moving from one currency to another, exacerbating the challenge for companies that are originally on the wheels in an era where customs barriers rise. During an interview with Bloomberg TV on July 3: There is no doubt that Bestent is right, as the US dollar will not disappear near the treasures of central banks or as a mediator for global finance ies, but he will have more competition in a multiple world, and it will be at home and abroad.