From the Economist - the dollar is tanking

[TexasBushwhacker]

I do not subscribe to The Economist (to expensive for me) but I do get emails about their latest articles. This was from the last couple of days:

"CHINA’S LEADERS sense an epic opportunity. President Donald Trump’s erratic trade policy, gaping fiscal deficits and threats to the independence of America’s Federal Reserve risk badly hurting the dollar. It has slumped 7% on a trade-weighted basis since January, and had its worst start to a year since 1973. By contrast, China’s tightly controlled currency, the yuan, has reached its highest level since Mr Trump was re-elected in November. Foreign investors are piling in. So are many governments looking for dollar alternatives."

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You know what happened in 1973? The Middle East oil embargo. Do you know why? U.S. support of Israel in the Yom Kippur (6 day) war. I am not offering an opinion on Israel then or now. I am against war in general and the relocation of European Jews to that area is far more complex than can be discussed here. It's also when Israel took over control of the West Bank.

The price of oil QUADRUPLED. The price of a gallon of gas went up 43%. Inflation was over 6% in 1973 and 11% in 1974. The stock market crashed.

A falling dollar and oil prices going up will be CATASTROPHIC to the U.S. and global economy. You think things are bad now? You ain't seen nothing yet.

[Mossfern]

1. The Six Day War

and the Yom Kippur War are two separate wars.
Both times Israel was NOT the aggressor - albeit that Israel,seeing movement by Arab nations to attack did make a preemptive strike.

[Blue Full Moon]

2. That's what tRump and Muskrat wanted

[Nictuku]

3. I read recently that OPEC is going to increase production

This should help to keep oil prices down, and it is not a good thing for Russia and its war efforts either.

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Interestingly, I wanted to post a link backing up my statement above, which I had either read or heard on a podcast from trusted sources a couple of days ago -- and it is really weird.

Lots of articles that /do/ back it up, but I'm not familiar with any of those sites, most of them are foreign. The CNBC article says the oil prices to climb, even though output is increased: (from 5 days ago):

https://www.cnbc.com/2025/09/08/oil-prices-climb-as-opec-agrees-to-raise-output-at-slower-pace-from-october.html

Another from 5 days ago from a site I recognize. This link is interesting because it is trying to explain why the price of filling our tanks is going up, even though production is being increased:

https://finance.yahoo.com/video/opec-raises-oil-output-why-135452797.html

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So who knows, go figure. Makes no sense. Production is up? Prices should go down unless demand is going up too.

[Irish_Dem]

4. China's dearest wish is to have the Yuan be the global currency.

Trump is offering them this gift.

[JCMach1]

5. Has been the plan all along, devalue the dollar extensively then shift US debt to crypto and peg it to the dollar,

essentially leaving it with JUNK status.

[bamagal62]

6. 👆this

[Bernardo de La Paz]

7. I don't think so. Yes, they do want to devalue the dollar and yes they want to do crap with crypto

But you can't shift payback of existing bonds (debt) to crypto when they are a contract in dollars. So, if they monkey with crypto it would be for new debt. I think it is unlikely though, and it would probably drive interest rates up because foreign and domestic bond buyers would hold back.

[JCMach1]

8. That's what the recent stablecoin law was about--

Under the law:

Reserve Requirements:
Issuers must hold reserves equivalent to the value of their issued stablecoins, consisting of cash or short-term U.S. Treasury bills.

...
U.S. Dollar Dominance:
.
By requiring stablecoin reserves to be held in dollars and Treasuries, the Act is expected to increase demand for U.S. government debt, further cementing the dollar's role as the global reserve currency.