Why is the US Dollar decreasing? #finance #economy #gold #trend #ai

6 Dec 2025 · 1 min

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1:02

Dan Novaes (creator/uploader) explains that the US dollar is undergoing a significant devaluation, calling it the worst year in decades. He cites numeric evidence: the dollar is down ~14% against other world currencies and down ~45% against gold this year, while Bitcoin is hitting all-time highs. Novaes links the decline to policy and structural causes (tariffs, sanctions, trade wars, large-scale money printing) but emphasizes debt dynamics and the US bond market trade-off between high interest rates (which raise debt servicing costs and hurt housing) and low rates (which further weaken the dollar and spur inflation). He notes the dollar's share of global reserves has fallen to about 42% from over 70%, and raises the possibility that the dollar could eventually lose reserve-currency status, citing historical examples (British pound, Dutch guilder).

Questions this video answers

December 6, 2025.

Dan Novaes.

About 14% ("worst year in decades. Down 14% against other world currencies").

About 45% ("dollar is down 45% against gold just this year").

Now about 42% of global reserves, down from over 70%.

Chapters

So what is happening with the US dollar? It's having its worst year in decades. Down 14% against other world currencies. We're seeing a classic currency devaluation. Very similar to the 1930s and the 1970s. Back then, currencies worldwide fell together, but they dropped even further against hard assets, specifically gold. And that is precisely what's happening again. The dollar is down 45% against gold just this year. And Bitcoin, often called digital gold, is also hitting all time highs. This pattern is repeating. So why is the dollar being devalued? You have tariffs, sanctions, trade wars and massive money printing. But the real issue is the debt. To finance this debt, the US bonds. But if the interest rates aren't high enough, investors simply won't buy them. This puts the US in a trap. Keep rates high and home prices become unaffordable, while interest on the debt just explodes. But if you cut rates, dollar weakens even more and inflation comes roaring back. The numbers don't lie. The dollar has fallen to just 42% of global reserves, down from over 70%. And notice what's rising? Gold. As money flows into gold, it weakens the dollar even further. Could the US dollar lose its reserve currency status? History shows every reserve currency eventually fails. Just like the British pound and the Dutch guilder. The dollar might be next. For a deeper dive, tap the link in my bio to learn more.