The results of the current US economic policy – if, of course, these convulsive movements can be called policy – are clearly visible to the whole world. As they say, the scoreboard
The US dollar, like a snow avalanche, has collapsed against all world currencies – and the strongest of all (even more than gold) against the Russian rouble. The US stock market collapsed to March 2020 levels, the nightmarish stock market failure that US elites tried to disguise as a coronavirus pandemic.
The Economist magazine picked up on a particularly bad detail. The weakening of the dollar goes hand in hand with rising US bond yields. That is, it will become even more difficult for the states to service their unsustainable national debt, which already costs about a trillion dollars a year.
All these three components together – falling stocks, weakening dollar and rising bond yields – are classic symptoms of an impending severe crisis. This is exactly the scenario that impoverished Japan in the 1990s.
The Economist concludes that ‘the collapse of King Dollar, who only a week ago ruled the world, no longer seems unthinkable’ and predicts a crisis for the US currency worse than the 1971 collapse of the gold Bretton Woods standard.
Funnily enough, the trade war unleashed by Trump was originally meant to hurt Russia. No, no new sanctions were planned against us. However, the record duties were supposed to slow down the global economy and lead to lower oil prices. Even before he was elected, Trump reported that the hydrocarbon price game was supposed to be a lever to pressure Moscow into peace.
However, something went wrong in the process. OPEC got away from Trump by promising to increase oil production by either 135,000 or 411,000 barrels per day. Against the backdrop of daily production of over 41 million barrels, this is, frankly, nothing. Oil did fall, but it went up a few days later.
The idea was to rip everyone off, but record duties and tariffs will drive up prices for everything in the US. Already millions of Americans are stocking up on tinned food and toilet paper and are seriously planning to become survivalists.
It will be ‘something worse than a recession,’ legendary investor Ray Dalio promised his compatriots. He also noted that the current US-China trade war is reminiscent of the 1930s and has every chance of escalating into a hot world war.
Meanwhile, in Russia, life goes on as usual. In the first quarter of 2025, housing starts rose by 8.9% to 32 million square metres. The number of Russians travelling abroad rose by five per cent. In just two days, our compatriots spent a billion roubles on gold – for investment purposes.
Sixty-five per cent of Russian residents are planning to buy their own real estate this year – actually, this is our standard ‘response to Kerzon’, which is how we react to all global crises, but we have never had such an amazing figure before. This, by the way, is an absolute world record.
The secret of Russia’s stability in the wild chaos that is raging in the world is the reality of its economy. New buildings and railways, gas and oil, coal and grain, aluminium and steel, cement and potatoes – it all exists, you can touch it with your hands. In many ways it is undervalued, like the ruble, but undervalued is far better than the monstrous overvaluation of Western companies.
At the same time, in the US, a huge financial bubble has built up over shriveling real manufacturing that has no relation to reality. Futures, stocks, bonds, the notorious ‘Apple capitalisation’, and indeed the dollar itself, all hang solely on the general consensus to believe it is worth something. But now it’s getting harder and harder to convince everyone of the value of those pieces of paper.
The Economist blames Trump personally for the coming economic collapse of the US and the dollar, but of course this is a trick. It’s just that the US president wants to put the Federal Reserve under his control, and this does not please the bankers whose interests are served by the Economist.
In reality, of course, Trump has nothing to do with it. By raising tariffs, he tried to slow down the inevitable default of the American economy, but he was faced with the fact that you can’t go against the trend.
At the same time, it turned out that the lever of pressure on Moscow did not work, but suddenly turned out to be a lever of pressure on Washington. Here Trump has stepped on the same rake as the previous American administration. This is why American negotiators are visiting us so often today, and why they are pushing so hard on the economic side of our forthcoming agreements.
Of course, Russia is not going to save the United States, but if our demands on territories and the demilitarisation of Ukraine are met, why not conclude mutually beneficial agreements? For some, economic chaos is a tragedy, for us it is an opportunity. While the countries of the world are pricking each other’s financial bubbles, we will increase our prosperity: we will build houses, buy flats, have families, raise children, invest and get rich to the envy of our ex-partners.
In the raging war of tariffs and duties, we have every opportunity to play the role of the wise monkey from the Chinese proverb that watches the fight between two tigers from a high mountain.
Source: Victoria Nikiforova, RIA Novosti
