Does Saddam accelerate the federal reserve to give up the dollar? | economy

International press reports and specialized economic analyzes are combined that the American president Donald Trump In his second term, he leads an unprecedented confrontation with American state institutions, threatening to dismantle the foundations that have maintained the financial and constitutional stability of the United States for decades.

This confrontation is clearly highlighted in its struggle with a council Federal ReserveThe most sensitive institution in the global financial system, a struggle that reports indicates that it no longer threatens the American interior, but also pushes the whole world to accelerate its steps towards the “post -dollar”.

An attack on Powell and targeting critical independence

According to a report published by the Russian newspaper Fezagliad, Trump described the head of the Federal Reserve Jerome Powell That he is a “fool” because he refused to reduce Useful interest ratesAnd he criticized his performance in the Federal headquarters restoration project in Washington, and went to the extent of calling for his dismissal.

Although he later retracted the statement by saying that “the dismissal is unlikely at the present time,” global markets have already started pricing the possibility of this change, according to Fazigliad.

The Russian newspaper explains that such a threat to an institution that represents the pillar of American financial stability – whose independence is necessary to combat inflation and stabilize economic expectations – not only opens the door to internal turmoil but to a widespread collapse in the confidence of global markets in US dollars.

Trump’s frightening approach

In a parallel context, the French Press Agency stated that “Trump managed during the first six months of his second term to impose the control of the executive authority on historically independent American institutions,” explaining that this control takes place in some cases “with implicit approval from bodies that are supposed to represent constitutional controls for this hegemony.”

The agency quotes Barbara Perry, a professor at the University of Virginia and the expert of American presidential history, describing it to the Trump approach as “frightening”.

“One of the fundamental elements in the American political system has undermined the balance of powers,” she added. Windy Schiller, a professor of political science at the University of Brown, describes Trump’s behavior by saying, “He wants absolute authority and is not considered any institution independent of his influence.”

Among the most prominent evidence of this trend is what the French agency documented that Trump issued 170 executive decisions in half a year, transgressing what his predecessor signed. Joe Biden In 4 full years.

He also dismissed three of the 5 members of the Consumer Product Safety Committee, who were appointed by former Democratic Presidents, which interfered with an independent institution that was temporarily protected by a judicial decision.

Federal under the guillotine

In the analysis of Fezliad, Yafgini Babushkin, Director of Business Development at Prime Brocker Service, explains that Trump’s behavior towards the federal reserve reflects “in an effort to transform monetary policy into an immediate political tool”, warning that the federal independence will lead to a collapse in global economic expectations and makes inflation an undesirable phenomenon.

“The ability to raise interest rates when needed is the weapon of independent central banks in the face of inflation”, but if the election or presidential interests become hostage, the markets will lose the possibility of prediction, and a cycle of instability that may reach a disaster begins.

Fezliad and the French Press Agency are unanimously agreed that Trump’s primary goal of reducing interest rates is to avoid a financial crisis waving on the horizon.

According to Nicolay Novic, an expert at the Military Economy Institute, US Public Religion Service exceeded $ 1.2 trillion, and the high interest on loans and mortgage threatens to push the American economy to suffocating stagnation. Hence, Trump sees in a cheap funds policy a way to enhance investment, revitalize industry, reduce unemployment, and to compete with China economically.

The dollar is at stake

Despite these goals, Babushkin warns that “the markets do not look at these measures as economic reform, but rather as a political exploitation of an institution that is supposed to be neutral.”

“In the event that confidence in the federal ability declines to control inflation, the markets will go to hedge through gold, goods and other currencies,” expecting the price of the federal to control inflation, and the markets will be treated for more than 3500 dollars per ounce, and an additional collapse in the value of the dollar.

Fezliad analysts believe that the continuation of this approach will accelerate the steps of countries such as China and Russia and the BRICS countries, towards building an alternative backup currency for the dollar.

According to the report, global central banks may begin to reduce their US dollar and bonds, which will put the United States to an unprecedented financing crisis.

The American judiciary undermines itself

In a serious development, the French Press Agency indicates that the Supreme Court, which includes 6 conservative judges, three of whom were appointed by Trump, issued a ruling in June to prevent federal judges from issuing national decisions that restrict the executive authority, which actually weakened the ability to eliminate the role of the “constitutional brakes”.

This prompted Windi Schiller to say that “the Supreme Court has become a strong ally of the executive authority,” to increase fears of the collapse of the separation of powers and the transformation of the presidency into an authoritarian authority that exercises the ruling without supervision.