this post was submitted on 02 Feb 2026
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Explain Like I'm Five
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US hegemony across the globe is largely predicated on the dollar as the world reserve currency, and although it isn't backed by anything, except maybe violence, I suspect that historians will eventually agree the real damage Trump has done to the American empire is that he's permanently shaken everyone's perception of the US as a stable world power.
But also from a purely Forex standpoint, the carry trade in Japan is going to force issues onto the USD in the near future. This might just be that.