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WhiteTara

(31,026 posts)
Sat Aug 2, 2025, 10:21 AM Aug 2

When the tsf does manage to tank the dollar, what happens

to the rest of the world currencies? Does the whole world go down in flames? Will there be any safe haven? Thanks for anyone's guess on this.

7 replies = new reply since forum marked as read
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surfered

(8,755 posts)
1. The cost of imports will increase. Foreigners may not invest in U.S. stocks or buy our bonds at lower rates.
Sat Aug 2, 2025, 10:25 AM
Aug 2

They do so because we’re seen as a safe haven and a rule of law country. They may longer think we are .

Dan

(4,903 posts)
2. Depression
Sat Aug 2, 2025, 10:33 AM
Aug 2

And all the benefits that come with it.

BUT

If we are super lucky, we will avoid the world war.

WhiteTara

(31,026 posts)
3. My real question is, will other currencies remain intact?
Sat Aug 2, 2025, 10:45 AM
Aug 2

Or will he pull the entire world into a death spiral?

surfered

(8,755 posts)
4. The currency or possibly basket of currencies that replace the dollar would probably increase
Sat Aug 2, 2025, 12:41 PM
Aug 2

bucolic_frolic

(52,069 posts)
7. You invest in hedges on the dollar if you believe it will crash
Sat Aug 2, 2025, 04:06 PM
Aug 2

Foreign assets, hard assets. Gold, precious metals ETFs, foreign ETFs and companies, physical goods here (houses, cars, collectibles). Those are about the simplest to understand and available to little people. Heck two pair of extra shoes could carry you through the turmoil years. Currency swaps are for big investors and banks.

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