De-Dollarization Persists Despite US-China Trade Deal

US President Donald TRUMP and Chinese leader Xi Jinping are set to meet in Gyeongju, South Korea, marking their first face-to-face discussions since 2019. The talks aim to finalize a trade deal amid ongoing tensions sparked by Trump's tariff policies. Yet, economist Peter Schiff warns that any agreement will fail to curb the relentless de-dollarization trend.

Schiff argues the deal ignores systemic issues—ballooning US deficits, inflationary pressures, and Fed rate cuts—that erode dollar dominance. "The average American gains nothing," he notes, emphasizing that Trump's tariffs created the very problem he now seeks to resolve. Gold's dip to $3,900 during negotiations underscores market skepticism.

China's three-year campaign to reduce dollar reliance shows no signs of abating. Partnerships with Russia, Iran, and African nations to settle trades in local currencies signal a broader shift among emerging economies to escape Washington's financial hegemony.