Miguel Afonso Caetano<p>"The dollar is a global currency because American policies and institutions have historically been more reliable than those of most other countries. If MAGA economists think this is a problem, then their boss has a ready-made solution. By imposing tariffs that violate international treaties, speculating about the invasion of allies like Canada and Denmark (to take over Greenland), ignoring court rulings, and threatening to seek a constitutionally prohibited third term, Trump is making the US more like weak-currency, high-inflation countries.</p><p>The world’s reaction to Trump’s “Liberation Day” tariffs was unambiguous: the dollar lost nearly 7% of its value against the euro while the yield on ten-year Treasuries rose by almost half a percentage point. The currencies of emerging and developing countries also plunged, because higher tariffs and a slowing world economy dim their growth prospects.</p><p>It is not easy to devise a policy that hurts almost everyone, but MAGA economists have managed this feat. If the global dollar goes down the drain as a result, it will have many mourners."</p><p><a href="https://www.project-syndicate.org/commentary/global-dollar-benefits-us-and-foreigners-alike-by-andres-velasco-2025-05" rel="nofollow noopener noreferrer" translate="no" target="_blank"><span class="invisible">https://www.</span><span class="ellipsis">project-syndicate.org/commenta</span><span class="invisible">ry/global-dollar-benefits-us-and-foreigners-alike-by-andres-velasco-2025-05</span></a></p><p><a href="https://tldr.nettime.org/tags/USA" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>USA</span></a> <a href="https://tldr.nettime.org/tags/Trump" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Trump</span></a> <a href="https://tldr.nettime.org/tags/Tariffs" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Tariffs</span></a> <a href="https://tldr.nettime.org/tags/TradeWars" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>TradeWars</span></a> <a href="https://tldr.nettime.org/tags/Dollar" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Dollar</span></a> <a href="https://tldr.nettime.org/tags/Currency" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Currency</span></a> <a href="https://tldr.nettime.org/tags/MonetaryPolicy" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>MonetaryPolicy</span></a> <a href="https://tldr.nettime.org/tags/PoliticalEconomy" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>PoliticalEconomy</span></a></p>