{"id":728975,"date":"2026-01-29T16:58:10","date_gmt":"2026-01-29T16:58:10","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/728975\/"},"modified":"2026-01-29T16:58:10","modified_gmt":"2026-01-29T16:58:10","slug":"trump-is-sleepwalking-into-financial-ruin-as-the-dollar-tanks","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/728975\/","title":{"rendered":"Trump is sleepwalking into financial ruin as the dollar tanks"},"content":{"rendered":"

Despite some signs to the contrary, many are arguing that America, under Trump, is facing its worst financial crisis<\/a> since the 1939 great depression. One person making that argument is Peter Schiff, who told Fox News.<\/p>\n

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Peter Schiff rips @FoxNews<\/a> out of their MAGA stupor with truth bombs that are imminent: <\/p>\n

\u2018The dollar is going to collapse, the dollar is going to be replaced by Gold. We are headed for an economic crisis that will make the 2008 financial crisis seem like a Sunday school\u2026 pic.twitter.com\/KRRhw4bith<\/a><\/p>\n

\u2014 Shannon Joy (@ShannonJoyRadio) January 28, 2026<\/a><\/p>\n<\/blockquote>\n

Schiff noted that the upcoming event will make 2008 look like a \u201cSunday school picnic\u201d. He also claimed that unlike 2008, this won\u2019t be a global but an American issue.<\/p>\n

So what\u2019s going on?<\/p>\n

Faux growth<\/p>\n

You may be aware that the US economy actually grew in the third quarter, as the White House\u2019s \u2018Rapid Response\u2019 team highlighted:<\/p>\n

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.@howardlutnick<\/a> on @POTUS<\/a> reversing the damaging effects of globalization:<\/p>\n

“We’re at the one year anniversary of Donald Trump. In the Third Quarter, we grew 4.3%\u2026 the $30T U.S. economy is now going to be growing at 5% or more because we are taking care of ourselves.” \ud83c\uddfa\ud83c\uddf8 pic.twitter.com\/NsV1bN0OQ7<\/a><\/p>\n

\u2014 Rapid Response 47 (@RapidResponse47) January 20, 2026<\/a><\/p>\n<\/blockquote>\n

There\u2019s a problem with this, however, and it\u2019s that while the economy is \u2018growing\u2019, the value of the dollar is diminishing. The following graph demonstrates what happens when there\u2019s more money but that said money is worth less:<\/p>\n

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This is a tldr of the Ray Dalio argument https:\/\/t.co\/na0qKYhK2n<\/a><\/p>\n

\u2014 Jason Mikula (@mikulaja) January 28, 2026<\/a><\/p>\n<\/blockquote>\n

There can be certain trade benefits to a country\u2019s currency devaluing, with the most obvious being a boost for exports. However, as YouTube channel, How Money Works, detailed in the following video, America isn\u2019t a big exporter. It\u2019s actually the world\u2019s biggest importer. In other words, a weaker dollar is incredibly bad news for Americans who want their treats and creature comforts.<\/p>\n<\/p>\n

Reserve<\/p>\n

A key driver of all this is that the dollar is losing its status as the \u2018global reserve currency\u2019 \u2014 i.e., the currency which people use to trade and invest with. That status made the dollar valuable, and in turn that made America rich.<\/p>\n

Nations and investors increasingly see the dollar as a less stable choice, with reasons including the erratic policy decisions of Donald Trump<\/a> (e.g. the on\/off tariffs):<\/p>\n

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This is insane\u2026<\/p>\n

US Dollar share of global reserve currency has fallen to its lowest levels this century.<\/p>\n

It\u2019s literally unprecedented. pic.twitter.com\/ifVcg8OZuc<\/a><\/p>\n

\u2014 Andrew Lokenauth | TheFinanceNewsletter.com (@FluentInFinance) January 25, 2026<\/a><\/p>\n<\/blockquote>\n

This didn\u2019t begin with Trump, though.<\/p>\n

Under successive US presidents, America has been waging economic warfare through sanctions<\/a>:<\/p>\n

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Over 1\/4th of the global population lives in countries sanctioned by the US and EU. And while this infographic is very useful, it doesn’t even include some other sanctioned countries like Nicaragua.<\/p>\n

Western imperialist nations are waging economic warfare across the planet https:\/\/t.co\/ZbeA6IVgzc<\/a> pic.twitter.com\/LCMVRbv34u<\/a><\/p>\n

\u2014 Ben Norton (@BenjaminNorton) January 17, 2022<\/a><\/p>\n<\/blockquote>\n

To avoid the sanctions, countries seek to make alternative financial arrangements outside of the US sphere of influence. In other words, by throwing its weight around so vigorously, America, with Trump at the steering wheel, has worked off much of its heft.<\/p>\n

While the dollar remains the global reserve currency for now, it used to be gold. The way things are going, it will be gold again before too long, as the following graph demonstrates:<\/p>\n

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See the full picture; that might be more important.<\/p>\n

Last time they crossed, but now they\u2019re heading the other way.<\/p>\n

When the Soviet Union fell and the Cold War ended, the era of the dollar truly began.<\/p>\n

Today, it\u2019s shifting back to a 1.5 polar world.<\/p>\n

Last year seemed to\u2026pic.twitter.com\/bskDMcdJrU<\/a><\/p>\n

\u2014 Nilay Parikh (@nilayparikh) January 25, 2026<\/a><\/p>\n<\/blockquote>\n

Collapse?<\/p>\n

We can\u2019t say for certain that the US is heading into its worst financial disaster since the great depression.<\/p>\n

We can say Trump is the absolute last person you would want in charge for all that.<\/p>\n

The guy is literally asleep at the wheel, and now the warning bells are so loud that even Fox News can\u2019t ignore them:<\/p>\n

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Trump falls asleep again during a meeting on live television. If Joe Biden had done this, the media would\u2019ve turned it into a week-long crisis. But with this clown, they shrug because he gives them the clicks that fatten their wallets. Total failures. https:\/\/t.co\/f33xrg5e1e<\/a> pic.twitter.com\/thbH6GkZtO<\/a><\/p>\n

\u2014 Chris D. Jackson (@ChrisDJackson) December 2, 2025<\/a><\/p>\n<\/blockquote>\n

Featured image via the Canary<\/p>\n

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