Monetary Matters with Jack Farley Breaking The Dollar System | Freya Beamish
39 snips
Apr 20, 2025 Freya Beamish, Chief Economist at TS Lombard, discusses the shifting landscape of the international monetary system. She argues that U.S. tariff policies are pushing towards a multi-polar currency order. Freya predicts a potential reduction in U.S.-China tariffs to around 30%. The conversation dives into the dynamics between the dollar and the yuan, along with the influence of global selling on U.S. financial markets. Lastly, she highlights investment strategies amid these currency shifts and the need for effective policies to maintain dollar dominance.
AI Snips
Chapters
Transcript
Episode notes
Tariffs Accelerate Currency Shift
- U.S. tariff policy is accelerating a transition toward a multipolar currency world.
- The dollar's role as global reserve currency is threatened not by financial crisis but by diminishing desire to hold U.S. assets.
Dollar Weakness Amid Risk Sell-Off
- The dollar is weakening even as risk assets sell off, defying usual crisis patterns.
- This reflects reassessment of US asset returns, not a financial crisis.
China’s Treasury Holdings Limit Leverage
- China’s holdings of US treasuries limit its leverage against the US.
- Selling treasuries harms China more than the US, constraining China’s bargaining power.