Rebel Capitalist News Dollar Plummets To Recent Lows...Did The CRASH Just Start?
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Jun 13, 2025 The recent decline of the U.S. dollar raises eyebrows, especially as it hits a low of 97.85. Discussion reveals that excessive government spending, rather than national debt, threatens economic stability. Insights into how dollar fluctuations interact with global dynamics are intriguing, especially with the UK facing economic challenges. As the U.S. diverges from global trends, the conversation shifts to the thriving gold and silver markets, hinting at profitable strategies for precious metals investment.
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Treasury Market Ignores U.S. Deficits
- The U.S. Treasury market ignores massive government spending and skyrocketing deficits due to monetary system mechanics.
- This allows unchecked government spending that distorts the economy and lowers living standards, especially for the poor and middle class.
Dollar Moves on Expectations
- Dollar moves mainly on growth and inflation expectations rather than deficits or debt levels.
- Lower U.S. inflation and slowing growth reduce interest differentials, pushing the dollar lower against other currencies.
Dollar Crash? Depends on Definition
- The recent dollar decline may be a crash only if you define it as a modest fall like to 95 on the DXY.
- A true crash to extreme lows like 70 or 50 is unlikely; dollar strength may return to previous highs first.