Expert Ray Dalio Explains Why Trump Is Deliberately Weakening The US Dollar
By: cryptosheadlines|2025/05/08 08:45:02
0
Share
Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com While the world seems shocked and disappointed at the flailing value of the US dollar, a leading finance expert believes that this predicament is nothing but a calculated strategy to counter the US debt crisis. Ray Dalio, founder of Bridgewater Associates, has come up with an intriguing analysis of Trump’s strategic regime, the one that promotes devaluing one’s own currency to combat the rising US debt crisis.Also Read: De-dollarization: Devere CEO Warns Dollar Supremacy Cracking as Asia Dumps USDRay Dalio Floats A New Compelling TheorySource: Inc.MagazineRay Dalio, in his recent post on X, presented a brief yet compelling analysis of currency dynamics and trends. His post outlined the idea of currency devaluation as one of the methods to reduce debt issues.Dalio took to X to share how, sometimes, when nations are grappling with intense debt crises and the debt is denominated in their own currency, in such a case, these nations opt to devalue their currencies to stabilize rising debt issues.He later shared how this is one of the primary reasons why the US dollar has been weak against the majority of other currencies, taking the investors by sweet surprise.“When countries have big debt problems and the debt is denominated in their currency, they inevitably devalue the currency. As explained in my upcoming book How Countries Go Broke: The Big Debt Cycle, “debt is currency and currency is debt.” In other words, since a debt asset is the promise to receive a specified currency at a future date, and since when one holds a currency, one holds it in a debt instrument, debt and currency are essentially the same thing. If you don’t like one, you must not like the other. Watch out for the price and value of currency. That is why the dollar has been weak in relation to most other currencies, and all currencies have been weak in relation to gold.”When countries have big debt problems and the debt is denominated in their currency, they inevitably devalue the currency. As explained in my upcoming book How Countries Go Broke: The Big Debt Cycle, “debt is currency and currency is debt.” In other words, since a debt asset is...— Ray Dalio (@RayDalio) May 6, 2025Also Read: $280 Price Target Projected for Amazon Stock (AMZN)Trump Wants a Weaker Dollar: Why?Trump’s intent to push the US dollar further down has now become a reality. According to several experts, a weaker dollar is good for exports, helping the US boost its manufacturing, which in turn will help reduce US deficits.“When the dollar is strong, US imports rise because foreign goods become cheap relative to domestically produced goods. At the same time, US exports fall as they become more expensive.” Lubin sharedAt the same time, Trump seems to have succeeded in devaluing the dollar, as giants like Goldman Sachs have predicted how the USD is on a path for further decay and erosion.“We have previously argued that the US’s exceptional return prospects are responsible for the dollar’s strong valuation,” Cahill writes. “But, if tariffs weigh on US firms’ profit margins and US consumers’ real incomes, they can erode that exceptionalism and, in turn, crack the central pillar of the strong dollar.”Also Read: Nvidia Chip Export Restrictions: CEO Warns Legislation Could Impact NVDA StockSource link
You may also like

AI Seating Chart Released | Rewire News Morning Brief
Musk and Ultraman are not above

Is the era of Embodied AI's "GPT Moment" Approaching? Axis Robotics Announces End of Testing, Set to Launch on Base Chain
Axis's answer is yes - provided that a thorough reshaping of the scale-up production of robotic data is required, and a redefinition of the deployment paradigm in the physical world.

Meta Layoff Explained: On the same day as laying off 700 people, they handed out $90 billion in retention bonuses to executives
The money saved from laying off 700 people is approximately equivalent to Meta's 1.5 days of AI infrastructure spending

Binance Cracks Down on Market Makers, a Long-overdue Trial
True accountability requires regulatory involvement, enforcement agencies, rather than allowing the exchange to act as its own judge.

Wall Street Collective Bearish on 2026, Will the Oil Crisis Trigger a Recession?
「There is no middle ground; the result will definitely be one of two extremes.」

Hollywood's AI Necromancy: Death Is No Longer the End of Labor
Post-Mortem Economics

a16z: DeFi Struggling to Support a True Financial Market
More important than throughput is the determinism and fairness of transaction execution.

Morning News | Bitmine launches institutional Ethereum staking platform MAVAN; Franklin Templeton launches tokenized ETF; Morgan Stanley to issue and sponsor Bitcoin ETF
Overview of Important Market Events on March 25

Kalshi early employees: Whoever controls the traffic controls the market
Robinhood can decide where tens of millions of contracts go with the flip of a switch, while the exchanges do all the hard work but cannot control their own fate.

Tether signs contracts with four major audits, Circle's compliance moat collapses, stock price plummets by 20%
USDT, with a market value of 184 billion dollars, is undergoing its first comprehensive inspection in history.

Proudly Introducing Aethir Claw: Your AI Agent, Our Infrastructure
Explore Aethir Claw, an easy-to-deploy AI agent solution that offers fully isolated VPS, encrypted payments, and highly competitive pricing.

Why Buying Gold Can Lead to Bankruptcy
"There is no issue with 'buying gold,' the issue is 'buying whose gold.'"

If the US Treasury yield rises above 5%, will Bitcoin drop below $50,000?
During the US-Iran war, as the bond market exhibited a **"meltdown"** scenario, Bitcoin's upward momentum is showing signs of exhaustion.

Circle Plunges 20%: Crypto Earthquake Triggered by Draft Proposal
Compliance gave Circle both a suit of armor and a ball and chain.

After the Smoke Clears: 5 Possible Endings to the Middle East Conflict
The Crown Prince in Exile for Half a Century, Set to Return to Tehran?

Stablecoin Yields Discontinued, Circle Plunges 20% in One Day
Tightening Regulations and Increased Competition Lead Market to Reassess Stablecoin Business Models

AI Wired into War Machine | Rewire News Nightly
Anduril and Palantir are collaborating on the development of the core software for the Golden Dome anti-missile system, with a project budget of $18.5 billion.

Web3 is sick, but the cure is not AI
Encryption may have wasted too many years, and the current AI anxiety is merely a stress response of an industry that has overdrawn its narrative after facing external shocks.
AI Seating Chart Released | Rewire News Morning Brief
Musk and Ultraman are not above
Is the era of Embodied AI's "GPT Moment" Approaching? Axis Robotics Announces End of Testing, Set to Launch on Base Chain
Axis's answer is yes - provided that a thorough reshaping of the scale-up production of robotic data is required, and a redefinition of the deployment paradigm in the physical world.
Meta Layoff Explained: On the same day as laying off 700 people, they handed out $90 billion in retention bonuses to executives
The money saved from laying off 700 people is approximately equivalent to Meta's 1.5 days of AI infrastructure spending
Binance Cracks Down on Market Makers, a Long-overdue Trial
True accountability requires regulatory involvement, enforcement agencies, rather than allowing the exchange to act as its own judge.
Wall Street Collective Bearish on 2026, Will the Oil Crisis Trigger a Recession?
「There is no middle ground; the result will definitely be one of two extremes.」
Hollywood's AI Necromancy: Death Is No Longer the End of Labor
Post-Mortem Economics
