by David Haggith
GoldSeek
The US dollar has suffered its worst run since the perilous Nixon dollar days that came about in 1973, which precipitated out of Nixon’s decision to end the backing of the dollar with gold in 1971. That ended the Bretton Woods international monetary system that formed right after WWII. There have rarely been worse years for the dollar than this one, but what is the dollar’s decline being credited to?
Tariffs are burning up the value of the dollar
The president’s stop-start tariff war, the US’s vast borrowing needs and worries about the independence of the Federal Reserve had undermined the appeal of the dollar as a safe haven for investors.
And how is the dollar traded as a safe haven by investors? The safe-haven trade is almost entirely in US Treasuries. Now, this, I pointed out as I have pointed out months ago to my paying subscribers, is THE KEY to understanding the most cataclysmic risk to the Trump Tariff Wars.