Dollar Devaluation: Why Asset Prices Rise When Currency Falls скачать в хорошем качестве

Dollar Devaluation: Why Asset Prices Rise When Currency Falls

The U.S. national debt exceeds $38 trillion with a debt-to-GDP ratio of 126%—unsustainable by historical standards. Governments typically address such crises through controlled currency devaluation rather than spending cuts or tax increases. When currency depreciates, asset prices (stocks, real estate, commodities) rise in nominal terms while cash holders experience wealth erosion. Large-cap tech companies with global revenue streams benefit doubly: foreign earnings gain value when converted to weaker dollars, and they possess pricing power to pass inflation to customers. This analysis examines the mechanics of currency devaluation, historical precedents (1971 gold standard, 1985 Plaza Accord), and optimal asset positioning strategies. Discussion question: How is your portfolio currently positioned between cash, bonds, and assets given currency devaluation dynamics? #currencydevaluation #wealthtransfer #assetallocation #inflation #macroeconomics #investmentstrategy