Is China Dumping the Dollar? - And is Ray Dalio Right about Reserve Currencies?

"I don’t agree that the dollar will loose reserve currency status any time soon – simply because there is no reasonable alternative to the Dollar right now."

"China – which is a huge economy - couldn’t replace the dollar in the global financial system with its currency - without opening its capital account and allowing the free movement of currency in and out of its economy – which it is unwilling to do."

"China – on the other hand - can replace its imports from the US more easily – as China mostly buys agricultural produce from the United States - so a big winner from this trade war will be Brazil who were a big winner in 2019 too - when the first round of tariffs was announced."

"The stop-work order on a multi-billion-dollar international investment project like this implies that the Trump Administration is quite likely to repeal all of the IRA tax subsidies for renewable projects."

"I don’t believe that such a deal is even remotely likely – and I think that even attempting to implement a policy like this would be so destructive and chaotic for the U.S. economy and financial markets that it could never happen."

"Markets haven’t yet priced in three years and three quarters more of chaos – and investors aren't really pricing in the damage that could be done to great American companies like Apple - if the president continues on his current path."