Rebel Capitalist News URGENT: The Dollar Is Plummeting Right Now...Here's Why
Sep 17, 2025
A sharp decline in the dollar takes center stage, with insights on the mechanics behind the DXY plunge. The discussion covers how debt and short-term dollar dynamics contribute to currency volatility. Predictions emerge regarding a dovish Fed rate decision, paired with a surge in gold prices and outperforming miners. As tensions in the market rise, the urgency of understanding these trends becomes clear.
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Short-Term Dollar Mechanics Drive Volatility
- George Gammon argues the dollar's sharp drop over six weeks is significant and not due to loss of reserve status.
- He traces moves to short-term dollar lending mechanics that create constant demand but can reverse quickly when conditions change.
More Demand Can Still Lower A Currency
- Gammon explains long-term dollar falls (e.g., 117 to 72) happened when dollar demand rose but supply rose faster via lending.
- He links globalization and commodity demand to increased dollar circulation and eventual depreciation.
Post-2008 Monetary Constraints Lifted Dollar
- After 2008 the monetary system produced fewer dollars while dollar-denominated debt remained high, pushing the dollar up.
- Gammon says these monetary mechanics, not politics alone, largely determine dollar direction versus other currencies.