{"id":94274,"date":"2025-04-11T07:00:49","date_gmt":"2025-04-11T15:00:49","guid":{"rendered":"https:\/\/www.cogwriter.com\/news\/?p=94274"},"modified":"2025-04-11T06:17:22","modified_gmt":"2025-04-11T14:17:22","slug":"us-dollar-takes-hit-and-is-considered-less-as-a-safe-haven-as-euro-and-gold-rise","status":"publish","type":"post","link":"https:\/\/www.cogwriter.com\/news\/prophecy\/us-dollar-takes-hit-and-is-considered-less-as-a-safe-haven-as-euro-and-gold-rise\/","title":{"rendered":"US dollar takes hit and is considered less as a ‘safe haven’ as euro and gold rise"},"content":{"rendered":"

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COGwriter <\/a><\/p>\n

The financial markets have been shaking this entire month. The USA dollar has been impacted:<\/p>\n

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Dollar Hits 3-Year Low Against the Euro in Tariff Turmoil<\/h2>\n

As China hits back on tariffs once more, recession fears cast doubt on the safety of US assets.<\/p>\n

April 11, 2025<\/p>\n

The dollar continued its fall against major currencies on Friday as uncertainty about the US economic outlook in a trade war cast doubt on the currency\u2019s safe-haven status. Early in the day, China responded to the latest 145% US tariff against it with a 125% tariff on US goods.<\/p>\n

The US currency hit a 10-year low against the Swiss franc and a three-year low against the euro, dropping to 88 cents on the euro for the first time since the start of the war in Ukraine. That makes one euro worth $1.14.<\/p>\n

Why The Dollar Is Weakening<\/h3>\n

\u201cThe main catalyst is an apparent repatriation trade from European investors, who are selling USD denominated assets and repatriating capital to the eurozone,\u201d says Peter Kinsella, global head of forex strategy at Union Bancaire Priv\u00e9e (UBP). …<\/p>\n

For Greg Meier, senior economist at Allianz Global Investors, rising tariffs pose a threat to US economic growth. \u201cThis time, the US economy may have a little more trouble avoiding tariff whiplash than in 2018, during Trump\u2019s last trade war, as there is no longer the high fiscal stimulus that there was then.\u201d<\/p>\n

According to Meier, however, there may be a more alarming explanation for the recent weakness of the US currency: de-dollarization. \u201cIf US institutions have become structurally less reliable, global capital should naturally move elsewhere. This would perhaps erode the USD\u2019s status as a global reserve currency,\u201d he says. …<\/p>\n

According to ING forex strategists, \u201cThe euro remains a key recipient of dollar outflows\u201d and the massive EUR-USD rally is \u201calmost entirely a function of the loss of confidence in the dollar, and not at all justified by underlying short-term rate dynamics.\u201d https:\/\/www.morningstar.com\/markets\/dollar-hits-3-year-low-against-euro-tariff-turmoil<\/a><\/p>\n

Safe-haven gold surpassed the key $3,200 mark for the first time on Friday, spurred by a weaker dollar and economic concerns due to an intensifying trade war.<\/p>\n

Spot gold<\/a> jumped over 1.3% to $3,216.27 an ounce after hitting a record high of $3,219.84 earlier in the session. Bullion is up over 5% so far this week. U.S. gold futures<\/a><\/span><\/span><\/p>\n

climbed 1.7% to $3,230.60.<\/p>\n

\u201cRecession risks are mounting, bond yields are soaring, and the U.S. dollar continues to weaken \u2013 all factors reinforcing gold\u2019s role as a crisis hedge and inflation shield,\u201d said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany. https:\/\/www.cnbc.com\/2025\/04\/11\/gold-bolts-past-3200-on-dollar-slide-safe-haven-flows.html<\/a><\/p><\/blockquote>\n

What is happening now is on top of what has been going on for some time.<\/p>\n

Which is?<\/p>\n

The Europeans have long wanted the euro to push the US dollar’s reserve currency status aside and the BRICS+ alliance wants to try to stop using the US dollar for cross-border trade.<\/p>\n

The BRICS+ alliance includes Russia, China, and various African and Asian nations.<\/p>\n

Related to BRICs+ a related meeting is going on now in Iran:<\/p>\n

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BRICS+ Association of Cities, Municipalities held in Tehran<\/h2>\n

11 April 2025<\/p>\n

With about a third of the global GDP and 45 percent of the world\u2019s population, BRICS countries have cooperated in various economic and political forums. A recent addition to these forums is the BRICS+ Association of Cities and Municipalities.<\/strong> https:\/\/www.presstv.ir\/Detail\/2025\/04\/11\/745935\/BRICS-Association-Cities-Municipalities<\/a><\/p><\/blockquote>\n

Notice the following:<\/p>\n

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De-Dollarization & BRICS: A New Global Power Shift?<\/h2>\n<\/div>\n<\/div>\n
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In recent years, the term “de-dollarisation” or trade in non-dollar currencies instead of the US Dollar has begun to draw attention in discussions on international affairs.<\/p>\n

In recent years, the term \u201cde-dollarisation\u201d or trade in non-dollar currencies instead of the US Dollar has begun to draw attention in discussions on international\u00a0affairs. This has increased even more so after US President Donald Trump\u2019s threats to countries pursuing \u2018de-dollarisation\u2019. \u00a0Apart from warning countries against \u201cde-dollarisation\u201d, Trump has also repeated warned BRICS member states against going ahead with a common currency.<\/p>\n

In February 2025, after taking over as US President, Trump commented:<\/p>\n

\u201cBRICS states were trying to destroy our dollar. They wanted to create a new currency. So when I came in, the first thing I said was any BRICS state that even mentions the destruction of the dollar will be charged a 150% tariff, and we don\u2019t want your goods and the BRICS\u00a0states just broke up,\u201d<\/p>\n

It is important to understand the nuances pertaining to de-dollarisation as well as the BRICS grouping<\/p>\n

The approach of Russia and China vis-\u00e0-vis de-dollarisation<\/strong><\/p>\n

Russia and China have been pushing for an alternative economic architecture. After the imposition of sanctions against Russia \u2014 in the aftermath of the Russia-Ukraine war \u2013 Russia and several other countries have repeatedly spoken against the \u2018weaponisation\u2019 of the US dollar. While speaking at the BRICS Summit, held at Kazan (Russia) Russian President Vladimir Putin said:<\/p>\n

\u201cThe dollar is being used as a weapon. We really see that this is so. I think that this is a big mistake by those who do this\u201d.<\/p>\n

Both countries, along with nations like Iran, have also pitched for an alternative BRICS currency. There is a strong geo-political dimension in the approach of both Moscow and Beijing towards \u201cde-dollarisation\u201d as well as a potential \u201cBRICS\u201d currency. … countries like India, UAE and Saudi Arabia and ASEAN countries \u2014 like Malaysia \u2014 and several other nations which share good ties with US have resorted to non-dollar trade, or are exploring the possibilities of doing so, to avert the sanctions imposed on Russia. Significantly, trade in commodities, especially oil, in Non-Dollar currencies has risen in recent years. …<\/p>\n

In conclusion, while the BRICS currency may seem a stretch, de-dollarisation is here to stay \u2014 irrespective of Trump\u2019s threats. https:\/\/moderndiplomacy.eu\/2025\/04\/09\/de-dollarization-brics-a-new-global-power-shift\/<\/a><\/p>\n<\/div>\n<\/div>\n<\/blockquote>\n

Related to the US dollar and BRICS, the Continuing<\/em> Church of God<\/a> (CCOG) put together the following video on our Bible News Prophecy<\/a> YouTube channel:<\/p>\n

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14:31 <\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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BRICS Push Aside USA Dollar<\/a><\/h3>\n
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The BRICS nations (Brazil, Russia, India, China, and South Africa) have as one of their founding goals, to eliminate the need to use USA dollars in cross-border trade. Six additional nations have been invited to join BRICS in 2024, and India reports that six more are also being looked at. The BRICS nations have already begun to drop the USA dollar for some cross-border trading with Russia and China indicating that they had almost done so completely in late 2023. What will happen to the economy and value of the USA dollar if more and more nations stop using it as a primary reserve and trading currency? What about hyperinflation? Does the Bible prophesy destruction for a highly indented nation in the end time? Is the USA the most indebted nation of all time? What about the intent and use of the Euro? Will Europe and Asia cooperate to eliminate the USA and its British-descended allies?<\/span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/blockquote>\n

Here is a link to our video: BRICS Push Aside USA Dollar<\/a>.<\/p>\n

Now, notice something last Fall from Mises Wire<\/em>:<\/p>\n

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Can America Survive Global De-Dollarization?<\/h2>\n

\u201cMoney does not grow on trees\u201d is an old expression of wisdom that seems to have been disregarded by 21st century American policymakers. People all over the world and throughout time base their decisions primarily through lived experience. The US dollar became the world\u2019s reserve currency in the aftermath of World War II, which is now almost eighty years ago. There is virtually no one in power at the American government or in leading institutions who has a living memory from before that period.<\/p>\n

In fact, the elite status of US currency has been taken for granted and is being eroded by policies that create inflation as well as sanctions that exclude other nations from participating in the global economy that America dominates through its money. There is the danger that the constant erosion could precipitate an avalanche that could cause the dollar to lose its status.<\/p>\n

This would shock the United States economy with massive price increases on consumer goods while crippling the local, state, and federal governments because deficit spending will no longer be possible if no one buys the debt. In this scenario, states like California and New York might find themselves turning to the federal government for some type of bailout while smaller states with more balanced budgets might find themselves wondering why they should be paying the bill for someone else\u2019s reckless spending that they had no part of, which in turn could create a crisis of unity among the United States of America. …<\/p>\n

And, if the dollar stops being accepted by producers in other nations for payment, then the trade deficit will become a shortage of goods manufactured abroad. The decrease in supply will lead to rising prices.<\/p>\n

The ability to create money out of thin air will lose its magic as that money becomes near worthless as a form of payment. Everyone in America will feel the pain and, when people are struggling, they are less able and willing to help others, especially when they blame the out-of-control spending of some for the predicament that everyone is in. The danger to the United States of America is very real but it is also fixable, although it won\u2019t be easy and it will require leaders that are not afraid to make difficult decisions instead of kicking them down the road. 10\/04\/24 https:\/\/mises.org\/mises-wire\/can-america-survive-global-de-dollarization<\/a><\/p><\/blockquote>\n

No, the US cannot survive this without massive change which it does not appear to be able to do. Yes, the danger to the US is real. And while in theory it is still fixable, that will not happen.<\/p>\n

Last Fall I wrote:<\/p>\n

Neither a possible Trump-Vance or Harris-Walz Administration has proposed anything that would truly stop de-dollarization. Actually threats against nations involved, by Donald Trump, as well as policies suggested by Kamala Harris, will tend to increase the speed of de-dollarization. (Thiel B.\u00a0MW: Can America Survive Global De-Dollarization? COGwriter: No!<\/a>\u00a0COGwriter, October 4, 2024)<\/p><\/blockquote>\n

Well, that is happening. There will be many unintended consequences of Donald Trump’s statements and policies.<\/p>\n

Notice something from my latest book available at Amazon Kindle: Unintended Consequences and Donald Trump\u2019s Presidency: Is Donald Trump Fulfilling Biblical, Islamic, Greco-Roman Catholic, Buddhist, and other America-Related Prophecies?<\/a>\u00a0as well as Amazon print\u00a0Unintended Consequences and Donald Trump\u2019s Presidency: Is Donald Trump Fulfilling Biblical, Islamic, Greco-Roman Catholic, Buddhist, and other America-Related Prophecies?<\/a><\/span><\/span>:<\/p>\n

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The USA dollar will ultimately crash and be worthless. That \u201cpride\u201d of American power will be broken (cf. Leviticus 26:19). …<\/p>\n

European leaders have been working for years to establish a new reserve currency for the world, partially with the intent to remove the USA dollar from its current position as a reserve currency.<\/p>\n

Those in Russia, Iran and some of the Arab lands, along with nations such as Brazil and India have discussed plans for the removal of the dominance of the USA dollar in global trade as well. Many are now working on that, along with China, in what is called the BRICS alliance.[i]<\/a> While Donald Trump did not cause all of this, an unintended consequence of the use of sanctions in the Trump-Pence Administration (as well as by the Biden-Harris Administration) is that more nations are looking to bypass the dollar. …<\/p>\n

When the U.S. dollar is no longer the world\u2019s reserve currency, this will hurt the USA financially. Increasing debt, including \u201cquantitative easing,\u201d is a form of dishonest profits that is not something that God approves of and will punish the USA for (cf. Ezekiel 22:13-16).<\/p>\n

Inflation will eventually hit the USA extremely hard. As the world becomes less attached to the American dollar, many financial jobs and opportunities will be in places other than the USA. Eventually, but not yet, the USA dollar will become worthless.<\/p>\n

Will it always be straight downhill for the economy of the USA?<\/p>\n

No.<\/p>\n

There are some reasons to have some temporary optimism. Proposed reductions in government regulations are expected to boost the economy. In addition, technological and other developments may temporarily support the U.S. economy\u2014as can reductions of regulatory burdens.<\/p>\n

Some policies of Donald Trump\u2019s may help. …<\/p>\n

For years, I have written that because of improvements in various aspects of energy and other technology (some of which Donald Trump seems to support), the USA may experience even more of an energy export boom, such as with oil and natural gas, etc. that may prolong its days of economic prosperity.[ii]<\/a>\u00a0 But prolonging is likely all that is possible as its destruction is prophesied (Daniel 11:39; Habakkuk 2:6-8). …<\/p>\n

Since many are now questioning the role of the USA\u00a0dollar as the world\u2019s reserve currency, more are looking into other currencies as well as gold.<\/p>\n

Gold will set records in U.S. dollar terms. …<\/em><\/p>\n

When the U.S.\u00a0dollar totally collapses people all around the world will consider that even if the euro (or something similar)\u00a0is strong, having a more gold-backed currency would be safer.<\/p>\n

The collapse of the USA dollar will shake a lot of the world\u2019s confidence in non-gold backed currencies. The Europeans do not have to have a perfect currency, only one that is perceived to be in better shape than the USA dollar or various other currencies.<\/p>\n

Having the European power acquiring more gold\u00a0to back the Euro or possibly another future European currency (that might potentially replace the Euro or even a basket of currencies) may greatly increase European credibility, prosperity, and influence around the globe, even if the backing is only implied.<\/p>\n

The debt accumulation policies of the Obama-Biden and the Trump-Pence Administrations, which were a massive acceleration of the previous policies of the Bush Administration, have to a large degree been continued and expanded by the Biden-Harris Administration.<\/p>\n

The increases in America\u2019s debt are heading the world into the time when something other than the U.S. dollar will be valued as its reserve currency.<\/p>\n

A Trump-Vance Administration would need to make massive changes to possibly prevent this.<\/p>\n

The USA and its dollar are at serious risk. …<\/p>\n

Unintended Consequences<\/strong><\/p>\n

While Donald Trump seems to believe that his policies are best for the United States, notice some unintended consequences of them: …<\/p>\n