this post was submitted on 30 Dec 2025
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[–] Aceticon@lemmy.dbzer0.com 24 points 1 week ago* (last edited 1 week ago) (3 children)

Have we already reached a tipping point for the USD as a reserve currency?

If not will this make that happen?

Because the real "shit hits the fan" moment will be when the rest of the World dumping USD assets (most notably, Treasuries) starts snowballing as those still holding assets valued in USD start getting hit by dollar devaluation due to others having dump USD assets, pushing them to sell dollars and dollar-denominated assets to avoid further losses.

Given just how large of a fraction of their currency is held by foreigners, a snowballing aversion to holding dollars is the kind of thing that can result in hyperinflation in the US.

[–] regedit@lemmy.zip 7 points 1 week ago (2 children)

Somehow, even while blaming tRump for their plight, Republican voters will continue to support tRump, even as they lose everything they and their family have. It's so fucked up!

[–] Diplomjodler3@lemmy.world 8 points 1 week ago

He let them use the n-word again without getting embarrassed. That's what they love him for.

[–] NikkiDimes@lemmy.world 1 points 1 week ago (1 children)

Why are we typing Trump as tRump though?

[–] regedit@lemmy.zip 1 points 1 week ago

Why not? It's my protest of him whenever I have to type his name!

[–] voodooattack@lemmy.world 4 points 1 week ago (1 children)

I’ve personally been using it like that for my entire freelancing career of over 20 years. Not since last year though. I’m not staying on a sinking ship.

[–] Aceticon@lemmy.dbzer0.com 3 points 1 week ago* (last edited 1 week ago)

Back when I lived in Britain working as a freelance ITer in the Finance Industry, after the 2008 Crash and from pretty much a front seat seeing how the authorities there managed the whole thing I lost trust in Britain and the British Pound to safely hold my savings, so kept moving any money I saved out if it, first to Euros (as I was an immigrant there and still had a bank account abroad) and later also to Gold.

Fast forward a few years and when the Leave Referendum results came out and the British Pound tanked 20% in a week, I had only about £2000 in British pounds, having even moved most of the leftovers of my savings out of the pound before the results came out "just in case".

So my own anecdotal experience is that when a country's economic and social stability starts showing cracks whilst the politicians in power are mainly concerned with their own wealth and that of their mates, it's best to at least move a fraction of one's savings out of that country's currency, possibly even out of the country itself (I did both, though my situation was unusual in that as an immigrant in Britain I naturally had a bank account outside Britain).

[–] plyth@feddit.org 1 points 1 week ago

The top 10% own more than 50% of the assets. If the billionaires actually have class solidarity they will simply keep owning dollars and stomach the losses from China selling their government bonds. Chances are that everybody else keeps their bonds because the US still have some influence.

I would guess that they could also put China on an embargo and just reject to trade their bonds, much like the EU does with Russia.

The US have killed Gaddafi for creating a reserve currency for Africa. Trump would be dead if he actually would be threatening the dollar.