We Have a Plan to Rescue the US Dollar

Mar 30, 2023 | Macro Insights

Bubble Monitor Chart
Bubble Monitor Chart

While NoBull’s simple 1% Plan to fix America’s deteriorating financial condition will not cure our condition overnight, it could buy us some time by setting the U.S. dollar on a firmer foundation.  

Commentary

The U.S. dollar is teetering under the weight of $30 trillion in national debt, an $8+ trillion Fed balance sheet, destabilizing inflation driven by wide-spread supply shortages, sky-rocketing interest rates, a low labor participation rate, a hollowed-out industrial base, and massive fiscal & trading deficits. Did we miss anything? Oh yes, growing systematic risk in the very important banking sector.

Is it surprising that our trading partners are growing more skeptical about accepting payments in U.S. dollars? We can do better for them, and for us. To this end, we propose a 5-point 1% plan as outlined below:   

  • Government reduces all spending by 1% per year for 20 years.
  • Fed cuts rates by 1% per year for 2 years.
  • Encourage employers to target 1% annual pay raises for 2 years.
  • Encourage wholesalers & retailers to find efficiencies (other than labor cuts) sufficient to limit annual price increases to 1%.
  • Increase domestic industrial capacity by 1% per year for 20 years.

Maybe this plan is not perfect, but now is the time to start the dialogue of how to fix things before it becomes too late.

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