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Feb 10, 2026
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SHORT
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The speaker observes that while the bond market ignored China's warnings, the FX market did not. The Dollar was hit across the board, even against the Yen which was expected to weaken following Japanese election results. There are two forces at play: a cyclical pullback because the Dollar is overvalued, and a structural shift where investors are "selling the dollar as a hedge" due to lost trust in US leadership and supply chain control. Alphabet recently issued a 100-year bond in a foreign currency, signaling that even major US corporations are diversifying financing away from the Dollar. The move might be purely cyclical rather than the beginning of a total collapse of the Dollar's reserve status. |
CNBC
China signals leverage as markets downplay Tr...
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