The US dollar is starting to lose its footing.
The signs are everywhere. The national debt is exploding. Trump’s new bill adds another $2.4 trillion to the pile. Elon Musk is publicly slamming it.
Investor confidence is cracking. Moody’s just downgraded the US credit rating. Interest payments on the debt have hit $684 billion per year. That’s now one of the biggest line items in the entire federal budget.
At this point, the question is clear.
Is this the moment the US dollar loses its global dominance?
And if it is, what happens next?
What does that mean for interest rates, inflation, venture capital, and the markets? What happens to people’s savings, pensions, and investments when the one currency everything depends on begins to slide?
That’s what I cover in today’s video.
Inside Trump’s New Spending Plan
While headlines are focused on the short-term politics, the real issue is structural.
The proposed bill includes:
Permanent extension of the 2017 tax cuts
A 50% increase to the standard deduction
Major increases to child tax credits and senior tax exemptions
Cuts to EV incentives and clean energy support
Large boosts in military and homeland security funding
Reductions in food assistance and education budgets
On paper, there are some savings. But those are dwarfed by the size of the new tax reductions.
Annual cost: around $600 billion.
Most of it not backed by spending cuts.
Which means the gap will be filled the usual way — by printing more money and adding more debt.
Even Elon Musk, one of Trump’s former supporters, is warning against it. He called the bill a “disgusting abomination.”
Debt Spiral, Interest Spike
The national debt is closing in on $37 trillion. That’s about $275,000 for every household in the country.
Interest payments are out of control. $684 billion now, with projections of $950 billion next year and up to $1.8 trillion by 2035.
Moody’s cited all of this when they officially downgraded the US from AAA to AA1 last month. The last of the three major credit agencies to do so.
Their reasons were simple:
Debt to GDP is projected to reach 156% by 2055
Interest costs are ballooning fast
There’s no serious plan to rein in spending
Market confidence is slipping. And when that happens, everything gets more expensive — including mortgages, loans, and consumer credit.
Foreign holders of US debt, like China and Japan, are already starting to use their positions as leverage.
And if international demand for US treasuries dries up, the whole system becomes unstable.
I walk through exactly how that plays out in the video.
For anyone watching this unfold, it’s hard not to feel uneasy. I’m not based in the US myself, but nearly all of my business is with Americans. And a weakening dollar affects me directly.
That’s why I’m doubling down on what I can control.
If you’re looking for ways to protect your income from all this uncertainty, I’ve also included a free guide breaking down how you can build a $100k/year online coaching business using your current experience.
You can grab it in the description below.
Stay stoic,
Max
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