One of the strongest reasons to hold onto the dollar is the stability and finances of the U.S. government.

But in the last month, the U.S. President has pushed for a criminal investigation of the Fed chair because he isn’t doing what the U.S. President is asking, has threatened to start a war of conquest against a NATO ally, has simultaneously said increased taxes on imports will reduce the deficit but also that he will distribute it all away, has used import taxes as a geopolitical weapon, has said he runs Venezuela and one of the first things he’s done is injected the US government ahead of all other creditors.

All of this in the first few weeks of 2026. And every one of these actions destroy the very basis of why the world has confidence in the finances of the U.S. govt.