It is unprecedented that the dollar is facing such a significant threat. Notably, the primary challenge to U.S. currency currently stems from Donald Trump and his administration's policies aimed at significant trade deficit reduction, coupled with a notable escalation in tariff wars. The forecast remains uncertain: will it be a light rain or a long financial storm?
The Phantom Menace
Unfortunately, the dollar is actually losing ground. The dollar has depreciated by 13 percent since Trump's return to the White House, and this process is ongoing. This will result in a reduction in the U.S. budget in real terms that will soon be felt by every American. Moody's has downgraded the U.S. credit rating from AAA to AA1, indicating concerns regarding the size of the national debt.
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