Geopolitical Economy Report Is Trump the last straw for the dollar system?
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Apr 24, 2025 
Join economist Michael Hudson, known for his sharp insights on the dollar system, and economic geographer Mick Dunford, who analyzes U.S. economic challenges. They explore whether Trump's policies mark the end of dollar dominance. Topics include the dollar's declining reputation, the impact of U.S. debt on its reserve status, and rising gold prices indicating potential asset bubbles. The discussion also delves into military spending's influence on the dollar and the shifting dynamics of U.S. asset ownership in a multipolar world.
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Safe Haven Status Eroding
- The dollar's status as a safe haven is eroding as investors simultaneously sell U.S. stocks, bonds, and dollars.
- This unusual sell-off reflects long-term trends accelerated by Trump's policies and casts doubt on trust in U.S. financial credibility.
Contradictory Dollar Policy
- Trump's insistence on lowering the dollar exchange rate aims to make U.S. exports competitive but contradicts global investment patterns.
- This approach conflicts with the so-called exorbitant privilege and risks accelerating the dollar's decline as foreign holders lose returns.
Root Problems in U.S. Deficits
- The U.S. runs sustained deficits to finance politicized public goods like global liquidity and military interventions.
- These deficits reflect deeper issues: financing geopolitical agendas and declining U.S. economic competitiveness.
