💰Who Killed the Dollar: Trump and China’s Currency War Scenario

💥”Kill the Dollar!” Trump, China, and the Invisible Hand

The dollar is faltering in 2025. It’s not just a market phenomenon. The prelude to a currency War is unfolding, with a Trump comeback scenario, China’s digital yuan strategy, and offshore forces at work.


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1. 🌪️ “The dollar is the enemy” Trump’s old vendetta?

With the 2024 presidential election, Donald Trump is back at the center of the world stage. His goal isn’t just a return to politics, according to his key staffers.

“Trump still believes it. A strong dollar kills American manufacturing.”

He has believed since his first term that “a weak dollar is a weapon.” The dollar weakness that is now underway is too strong and consistent to be explained by market logic alone. It may be part of a “currency reset operation” that the Trump camp is pushing in preparation for a comeback, along with a change in US monetary policy.

​📌 Example:

  • Fed hints at rate cuts as early as 2025, citing easing inflation
  • Treasury issuance of Treasury bonds increases → markets are “printing dollars” in earnest
  • Revival of the Trumpian mantra that “a strong America comes from a weak dollar”

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2. 🐉 China’s true nature as it prepares for the “era of the digital yuan”

Meanwhile, China has not been active in defending its exchange rate in the first half of 2025, despite a stronger yuan. Why?

The answer lies in the digital yuan (DCEP). China had been dreaming of entering the global reserve currency space with a digital currency for years, and in 2025, it finally launched a digital currency trade pilot with Southeast Asian countries.

​📌 Background scenario:

  • Drives yuan strength → Increases purchasing power in China → Strengthens international acceptance of digital yuan
  • Aimed to avoid SWIFT-based dollar payments amid rising US-China tensions
  • Digital yuan also emerges as an alternative for trade with US sanctioned countries such as Russia and Iran

All of this is China’s way of saying, “We will create a new order to replace the dollar.”


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3. 🐍 Offshore forces weaponize exchange rates

And the final piece of the puzzle. **It’s been said that “when the exchange rate fluctuates in Seoul, you can see the shadows of London and New York”.

In April-May 2025, the won/dollar exchange rate plummeted by more than 100 won, from 1,487 to 1,375 won. At first glance, it was a “stronger won,” but it was too fast and unstable.

Some speculate that this may have been a concentrated buying/selling offensive by offshore hedge funds.

​💬 Anonymous Forex Dealer:

“The volume wasn’t normal – it felt like the exchange rate was caught, not squeezed.”

📌 Signs:

  • Spike in articles analyzing South Korea’s foreign reserves in foreign media
  • Buying spree across Asian currencies distorts market prices
  • Korean won appreciates faster than U.S. Treasury rates

If this situation is repeated, an “Offshore Currency Attack” could become a reality. This is not a repeat of the 1997 crisis, but it is a potentially disruptive event.


4. 🔮 3 Scenarios for the Foreign Exchange War of 2025

​Scenario ① Trump’s return → interest rate cuts → dollar weakness accelerates

  • Emphasizing “Made in America” → Dollar Weakness is an Intentional Weapon
  • Global Dollar Asset Avoidance → KRW, Yuan, and Yen Continue to Strengthen
  • Strong favor for decentralized assets such as Bitcoin and gold

Strategies: Unhedged ETFs expand exposure to global risk assets


Scenario #2 China’s digital yuan expansion → US-China currency bloc erupts

  • Southeast Asian, African countries expand yuan trade
  • US fears SWIFT-centric isolation
  • Dualization of foreign exchange markets → Increased difficulty in predicting exchange rates

Strategies: Currency diversification, Asian currency ETFs, and real assets


Scenario ③ Offshore money launderers attack in earnest

  • KRW-YRMB near-term highs → sharp reversal to the downside
  • EMs like South Korea threaten to run out of reserves
  • Sudden credit crisis in international financial markets

Strategies: Currency Hedged Bonds, Dollar Asset Allocation Returns, Swiss Franc/Gold ETFs


🧭 How should investors act?

🎯 Financial investors:

  • Trump-style reflation → Risky assets expand
  • But hedging options for increased currency volatility are essential

🏘️ Real estate investors:

  • Stronger KRW → Timing to Enter Overseas Real Estate
  • Scenario ③ Survival strategy of holding cash assets in the event of an outbreak

🪙 Coin Investor:

  • Digital yuan vs. bitcoin framed as opposites
  • China-free stablecoin/gold-linked spotlight over USDT

🚨 A final warning from the experts

“The forex market is not a numbers game right now. It’s a battle of power.”

Exchange rates are no longer explained by trade surpluses and deficits alone.

Amid politics, currency wars, and the reshaping of the digital order, exchange rates have become a battleground.

📌 Exchange rates are not something to predict, they are something to defend.

  • Currency ETFs
  • Global Asset Allocation
  • Balanced gold, dollar, and bitcoin holdings
  • These are the three basic weapons to survive the currency wars of 2025.

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