💵 ALERT! Dollar Surge Ahead — Why the DXY Could CRASH Global Markets in 2025 | US Dollar Collapse Explained - video Dailymotion

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💵 ALERT! Dollar Surge Ahead — Why the DXY Could CRASH Global Markets in 2025 | US Dollar Collapse Explained   💵 **ALERT! Dollar Surge Ahead — Why the DXY Could CRASH Global Markets in 2025 | US Dollar Collapse Explained**  ---  ## 🧠 **SEO Description (Short + Powerful + Search-Optimized)**  🌍 The **US Dollar Index (DXY)** is skyrocketing — but experts warn it might be the calm before a **global market crash** .  Discover in this video:  * Why the **Dollar Surge** could trigger a **Stock Market Collapse** 📉 * The **hidden truth behind DXY’s rise** 💵 * How Gold, Crypto, and Global Currencies will react  * The **2025 Economic Storm** and how to protect your money 🌪️  💡 Perfect for **investors, traders, and finance learners**, this AI-powered analysis reveals how to stay ahead in 2025.  ❤️ LIKE if you agree | 💬 COMMENT “Crash Alert 🚨” | 🔔 FOLLOW for daily market updates!  ---  ## 🔖 **Trending Hashtags**  #DollarSurge #DXYCrash #USDollarCollapse #StockMarketCrash #FinanceNews #EconomicCrisis2025 #GlobalMarketUpdate #InvestingTips #FinancialEducation #AIAnalysis  ---  ## 🏷️ **SEO Tags (Comma Separated for Metadata Input)**  Dollar Surge Ahead, DXY Crash Explained, US Dollar Collapse 2025, Global Market Crash 2025, Economic Collapse Prediction, USD to INR 2025, Stock Market Crash News, Dollar Index Forecast, Finance News Today, Investing Tips 2025, AI Market Analysis, Dollar vs Rupee, Global Recession Warning, Federal Reserve News, Global Economy Explained, Inflation vs Dollar, Money Mindset Finance 2025

Transcript

00:00When the U.S. dollar goes down, everything else tends to go up.

00:04That's part of why so many are convinced the dollar index, or DXY, is heading lower.

00:10It's the only way everything else goes higher.

00:14But what if they're wrong?

00:16What if the dollar is about to strengthen and send everything else down?

00:21Today, we're taking a deep dive into the U.S. dollar,

00:24looking into its history, the forces shaping its recent performance,

00:27and what it could all mean for the markets.

00:31My name is Louis, and you're watching The Coin Bureau.

00:34Now, before we dive in, there is something I need to make clear here,

00:37and that is that I am not a financial advisor,

00:40and nothing in this video should be considered financial or investment advice.

00:44This is educational content intended to inform you about the U.S. dollar.

00:49That sounds good.

00:50Make sure to smash that like button, and let's get into it.

00:53Now, to really understand the U.S. dollar,

00:56we need to go back to the beginning of money itself.

00:59For most of history, money wasn't just a medium of exchange.

01:03It was also a tool of control, a way for rulers to hold power over their people.

01:09And of course, when you have centralized control, you get instability.

01:14After World War I, attempts to revive the precious gold standard collapsed.

01:18Central banks hoarded gold, global cooperation broke down,

01:22and the result was a monetary system that became deeply deflationary.

01:27Things only got worse during the Great Depression,

01:30compounded by the Smoot-Hawley tariffs of 1930,

01:33which slashed global trade by two-thirds.

01:36The breaking point, though, came in 1931,

01:40when the Bank of England abandoned the gold standard

01:42and devalued the pound by about 25%.

01:45That move set off a race to the bottom,

01:49as countries everywhere ditched their gold pegs

01:52in an attempt to export their economic pain.

01:55By the end of World War II,

01:56the United States was the only major economic power left standing.

02:01Capital had flooded into the country,

02:03and after the Gold Reserve Act of 1934,

02:06which raised the price of gold to $35 an ounce,

02:10the U.S. controlled about 75% of the world's gold reserves.

02:15That dominance set the stage for what came next.

02:18In July 1944, delegates from 44 nations

02:21gathered in the New Hampshire town of Bretton Woods

02:24to design a new monetary system.

02:27The result was a gold exchange standard

02:30that placed the U.S. dollar

02:32at the center of the financial universe.

02:34The dollar was pegged to gold at $35 an ounce,

02:38and every other major currency was pegged to the dollar.

02:42On top of that,

02:43the U.S. guaranteed that foreign governments

02:45and central banks could convert their dollars back into gold.

02:50For a time, this system worked,

02:52but it carried a fatal flaw.

02:54U.S. military spending and ambitious domestic programs

02:57flooded the world with dollars.

02:59As French President Charles de Gaulle famously put it,

03:03this was, quote,

03:04exorbitant privilege.

03:05America could finance its deficits

03:08simply by issuing the very currency

03:10other countries were forced to hold as reserves.

03:13Eventually, the math stopped adding up.

03:16It became clear that the U.S. no longer had enough gold

03:19to back all of the dollars in circulation.

03:22So, on August 15, 1971,

03:25President Richard Nixon pulled the plug,

03:28ending gold convertibility

03:30and bringing the Bretton Woods system to an end.

03:33That decision gave birth to the fiat currency system

03:36that we live in today,

03:38where money is backed only by the issuer's monopoly on power.

03:42But the dollar didn't fade away.

03:45Quite the opposite.

03:46In 1974, the U.S. cut a deal with Saudi Arabia

03:50that required oil to be priced exclusively in dollars.

03:54This petrodollar agreement hardwired the greenback

03:58into the foundations of global trade,

04:01particularly the energy trade.

04:04That dominance is what we measure today

04:06with the DXY, the dollar index.

04:09For those unfamiliar,

04:11the DXY is a measure of the U.S. dollar's value

04:14against a weighted basket of six other currencies,

04:17with the euro and the Japanese yen making up the bulk.

04:21That said, the DXY is also a bit outdated.

04:25It doesn't include the Chinese yuan or the Indian rupee,

04:28currencies that matter far more to global trade today

04:31than, say, the Swedish krona,

04:33which is also in the DXY.

04:36Even so, the DXY remains the go-to yardstick

04:39for measuring the dollar's strength.

04:41And the system it reflects

04:42is still very much an exorbitant privilege.

04:46The U.S. can issue mountains of debt

04:48knowing that foreign governments and investors

04:50will buy its treasuries,

04:52or that the Federal Reserve itself will step in.

04:55The result is that the dollar has become

04:57the financial bloodstream of the global economy.

05:00And despite all the talk about its decline,

05:03it still underpins most of global trade

05:05and is likely to remain dominant for decades to come.

05:09So, when we talk about the U.S. dollar,

05:11what we're really talking about is the DXY.

05:14And to really understand the DXY,

05:16we need to look at the other currencies in the basket,

05:19specifically the structural weaknesses

05:20that tend to weigh them down.

05:22Let's start with the Japanese yen.

05:25Japan has the highest debt-to-GDP ratio

05:28in the developed world, or 260%.

05:31To put that into perspective,

05:33the government spent over a fifth of its budget

05:36just on interest payments in 2023 alone.

05:39And every small rise in bond yields

05:41sends those payments soaring.

05:44Unsurprisingly, this has shaken confidence

05:46in Japan's financial stability.

05:49Yields on long-term government bonds,

05:51like the 30-year JGB,

05:53have surged to record highs,

05:55a clear sign that investors are getting nervous

05:57about the country's long-term potential.

05:59But the problems don't stop there.

06:01The Bank of Japan is stuck.

06:03Inflation has been above its 2% target

06:06for three years straight,

06:08sitting at 2.7% as of August of 2025.

06:12Under normal circumstances,

06:13they'd raise rates to cool things down.

06:16But with such a mountain of debt,

06:18higher rates would trigger a fiscal crisis.

06:21Economists call this fiscal dominance,

06:23when a central bank's policy is dictated

06:25not by inflation, but by government debt.

06:29This trap locks the BOJ into ultra-low rates,

06:32which fuels the yen carry trade,

06:35where investors borrow yen at negligible rates

06:37and sell it to buy higher-yielding assets abroad.

06:41It's essentially a trillion-dollar liquidity machine

06:43that constantly pushes the yen lower.

06:46And we saw just how dangerous this was

06:48in the summer of 2024.

06:50The BOJ made a small rate hike,

06:53and on August 5th, markets went into meltdown.

06:56Yet, even after that shock,

06:58rates are still pinned near the floor,

07:01which means the yen carry trade

07:02is very much still alive.

07:04That whole fiasco is something we covered in detail

07:07in another video,

07:09which you could find right over here.

07:11Up next comes the British pound.

07:14The UK faces a toxic mix of sticky inflation

07:17and deteriorating public finances,

07:20with 30-year gilt yields at levels not seen since 1998.

07:26And FYI,

07:27gilts is basically just a British word for bonds.

07:30Now, if the near future for the UK looks bleak,

07:33the long-term picture looks even worse.

07:36Under pessimistic forecasts,

07:38the UK's national debt could balloon

07:40to nearly 274% of GDP by the 2070s.

07:46And with debt already hovering around 100% today,

07:49that's hardly the kind of backdrop

07:50that inspires confidence in the pound.

07:53But these problems pale in comparison

07:55with those of the euro.

07:57In countries like Austria, France, and even Germany,

08:00foreign investors have been choosing equities in gold

08:03over sovereign bonds.

08:04Meanwhile, European leaders have recently committed

08:07to spending 5% of GDP on defense.

08:10That's a massive bill,

08:12and to cover it,

08:12the ECB will likely have to step in

08:15with large-scale bond purchases.

08:17In other words,

08:18quantitative easing.

08:20And we know QE puts downward pressure on a currency.

08:24And if those commitments aren't met,

08:26the fallout could be even worse.

08:28President Trump has made it crystal clear

08:31that Europe won't be getting a free pass

08:33if it fails to spend on defense.

08:36So, whether it's the yen,

08:38the pound,

08:39or the euro,

08:40the story is the same.

08:41Profound structural problems

08:43that point to continued long-term weakness

08:45against the dollar.

08:47That said,

08:48these problems aren't unique.

08:49The US isn't exactly keeping its own

08:51fiscal spending under control either.

08:54The difference is that,

08:55compared to every other currency,

08:57the dollar is still likely to be

08:58the last one standing.

09:01Simply put,

09:02it's the best of a bad bunch.

09:04Now, so far,

09:05we've seen that the dollar looks strong

09:07mainly because its rivals are weak.

09:10But it isn't just strong by comparison.

09:13It's strong at a fundamental level.

09:15To see why,

09:15we need to step back

09:16and look at how money is actually created.

09:19Contrary to popular belief,

09:21most money isn't printed by governments.

09:23Money is usually loaned into existence.

09:26Most money is technically debt.

09:29Logically,

09:30this means that there's constant demand

09:31for US dollars to pay down interest on,

09:34well,

09:35all the US dollars

09:36that were created via borrowing.

09:38That's why macro analyst Brent Johnson

09:41believes that it's dollar strength

09:43that will eventually break the system,

09:46not dollar weakness.

09:47To put things into perspective,

09:49estimates put global dollar-denominated debt

09:52at over 50 trillion dollars.

09:55Just servicing that mountain of debt

09:57likely costs more than a trillion dollars

09:59every single year.

10:00Until it's repaid,

10:02nobody can simply walk away from the dollar.

10:04And this is where things get interesting.

10:07When you see the dollar weaken,

10:08foreign powers pile on more dollar debt

10:11because it's cheaper to do so.

10:13But the US is the only country

10:15with the power to print the dollars needed

10:17to repay it.

10:18The practical effect of this dynamic

10:20is that it reinforces America's financial grip

10:23on the world,

10:24which is really crazy to consider.

10:27What this means is that

10:28an oversupply of dollars

10:29is necessary for the system

10:31to continue functioning.

10:33If there's a shortage of dollars,

10:34that's when the short squeeze begins.

10:37Foreign entities are forced to sell assets,

10:40sometimes even their own currencies,

10:42just to acquire the US dollars

10:43that they need to pay down the debts.

10:45And as the dollar maturity wall

10:48hits more and more economies,

10:50refinancing that debt

10:51becomes brutally expensive.

10:53Which leaves us with a sobering conclusion.

10:56The only true path to de-dollarization

10:58is de-leveraging.

11:00And de-leveraging means pain.

11:03In plain English,

11:04the world as a whole

11:05needs to stop borrowing dollars.

11:07A rising dollar forces that painful process.

11:11A falling dollar, by contrast,

11:12only encourages more borrowing

11:14and re-dollarization.

11:17And that's why every time the DXY climbs,

11:20the pressure ratchets up,

11:21draining liquidity out of other assets

11:23and pulling it back into the dollar.

11:26So, if we're entering a scenario

11:27where the world is experiencing

11:29a shortage of dollars

11:30because of refinancing issues,

11:33will the US government

11:34step in and stop it?

11:35Well, a few years ago, maybe.

11:38But today, things look very different.

11:40We're no longer in the era

11:41of coordinated bailouts

11:43like we saw in 2020 and 2022.

11:46Global debts are far larger now.

11:48And US politics has shifted

11:50under President Trump's

11:51America First agenda,

11:52which is steadily dismantling

11:54the post-war rules-based order

11:56that held things together for decades.

11:59At the center of all of this uncertainty

12:00is the battle between the President

12:02and the Federal Reserve.

12:04On paper, the Fed's mandate

12:05is price stability and maximum employment.

12:08But in reality, its main job

12:10is to protect the US-dominated

12:12financial system.

12:13Because if the dollar-based system

12:15goes down,

12:16the US government likely

12:17goes down with it.

12:19That's why many argue

12:20that central bank independence

12:21is more myth than reality.

12:24And when you look back,

12:25the Fed's actions

12:26really back this up.

12:28For the last 50 years,

12:29its policies have assured one thing.

12:32The dollar should gradually weaken.

12:34A weaker dollar is the default

12:36because it makes global growth possible

12:39and ultimately increases US dominance.

12:43But if the dollar starts getting stronger,

12:45the opposite will occur.

12:46And that's the risk

12:47that we can now be facing,

12:49even if today's dollar weakness

12:50makes it hard to see.

12:52Meanwhile, the rest of the world

12:53is searching for an escape hatch.

12:55The BRICS countries

12:56are stepping up trade talks

12:58and laying the groundwork

12:59for alternatives to the dollar system.

13:01They're not ready to rival it yet,

13:03but Trump's tariff wars

13:05have only accelerated the push,

13:07with more nations

13:07looking to shield themselves

13:08from the volatility

13:09of the so-called Trump order.

13:12The US, of course,

13:13sees this too.

13:14Trump has even said

13:15that losing the dollar's reserve status

13:17would be, quote,

13:18like losing a war.

13:20One way to prevent that

13:21is actually through stable coins.

13:24After all,

13:25nearly 99% of them

13:26are pegged to the US dollar

13:28and backed by US treasuries,

13:30which means

13:31every single transaction

13:32is effectively a vote of confidence

13:34in the greenback.

13:36It also has the practical effects

13:37of lowering bond yields,

13:39which also weakens the dollar.

13:41And with the Genius Act now passed,

13:43the US has laid the legal groundwork

13:45to lock in that advantage,

13:47reinforcing dollar dominance

13:48across the digital economy

13:50while creating even more demand

13:52for its debt.

13:53We covered this in detail

13:55in a separate video,

13:56which you can check out

13:57right over here.

13:58And this brings us

13:59to the most important question.

14:00What does all of this mean

14:02for the markets?

14:03Well, to start with,

14:04let's look at the technicals.

14:06At the time of recording,

14:08the DXY looks primed

14:09for a breakout

14:10in either direction,

14:11and it's likely to break down

14:13as a result of the recent

14:14US government shutdown.

14:16Hedge funds and asset managers

14:17are betting heavily against it.

14:19In fact,

14:20positioning is the second shortest

14:21it's been in two decades,

14:24which could result

14:24in a short squeeze.

14:26What's spooky

14:27is that we've seen

14:28this set up before.

14:29In the early stages

14:30of a financial crisis,

14:31the dollar often dips.

14:33It happened in September of 2008,

14:35in March of 2020,

14:37and again in April of 2025.

14:39Investors tend to pull

14:40their quote-unquote

14:41play money home first,

14:43which pushes the DXY lower.

14:45But once the slowdown

14:46turns into a real crisis,

14:48the script flips.

14:50Suddenly,

14:50there's a scramble

14:51for dollars to service debt,

14:52and the DXY rips higher.

14:55This is sobering,

14:56considering the squeeze lower

14:57caused by the recent

14:58US government shutdown.

15:00It suggests that

15:01this squeeze lower

15:02could be temporary,

15:03and that the DXY

15:04could start rallying again

15:05sooner than people think.

15:07And when the DXY

15:08starts pushing higher,

15:10all those borrowed dollars

15:11will become more expensive,

15:13and capital will rush back

15:14into the dollar,

15:16driving it higher.

15:17And when that happens,

15:18the squeeze will become

15:19too much to bear,

15:21and global markets

15:22could crash.

15:24But while this might sound grim,

15:25the bottom line is that

15:27the global financial system

15:28cannot run on a strong dollar.

15:31At some point,

15:32a forced re-evaluation,

15:34something like a

15:35modern-day Plaza Accord,

15:37will have to happen

15:38to push the dollar down.

15:40And when that moment comes,

15:41everything will rally,

15:43as investors understand

15:44the Ponzi will continue.

15:46That's when gold,

15:47and possibly Bitcoin,

15:49will shine brightest,

15:51as forms of money

15:52that can't be debased.

15:53Yet for now,

15:54the world seems to be positioned

15:56for the dollar

15:57to keep falling

15:57in the short term.

15:59But if that consensus is wrong,

16:01we could be in

16:01for a very nasty surprise.

16:04And if you think

16:04that this is bad,

16:06wait until you hear

16:06how the very foundations

16:08of the Western financial system

16:09are beginning to creak,

16:11something that we covered

16:12in detail right over here.

16:14And if you haven't subscribed yet,

16:16you could do that

16:16right over here.

16:18Thank you so much for watching,

16:19and we'll see you again

16:20very soon.

16:21This has been Lewis,

16:22signing off.

💵 ALERT! Dollar Surge Ahead — Why the DXY Could CRASH Global Markets in 2025 | US Dollar Collapse Explained

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