Will The Debt Ceiling Fight Tank the US Economy Further?

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PUBLIUS SPECIAL GUEST: Joseph Gradante is a financial expert and founder of Allio Finance, the first Machine Learning investment engine built on FSO (Full-Scale Optimization).

The Federal Reserve’s massive interest-rate hiking campaign to combat the inflation nation unleashed by President Biden has had countless implications across the global economy. While a steeper cost of debt financing for domestic corporations is one of the leading challenges, an emerging discussion regarding the dollar’s role in global trade gains traction. “De-dollarization” is increasingly bantered about across media outlets.

De-dollarization is predicated on the current trend globally to move away from the dollar as the world’s reserve currency. Over-time, trading partners of these countries will pivot from relying on the U.S. dollar, and increasingly conduct trade in their local currency.

In the future, digital currencies will likely become the preferred medium of exchange as it gives the government unprecedented control and insight into how individuals and organizations use

their capital. For now though, the Fed essentially will continually seek to monetize U.S. debt with Congress continuously spending well in excess of the revenue it collects, leading to more calls by others on the world stage to reduce their reliance on the greenback.

Will China’s RMB emerge as the leading method of exchange? Can the euro rise to prominence (not likely)? Or will the global economy turn more bilateral with each country only doing business in its currency? It’s hard to say, but I assert that the long-term tendency for a single currency to dominate for a period of 80-120 years probably only continues for a few more

years.

The dollar has been the reserve currency since Bretton Woods 1 when the United Nations Monetary and Financial Conference took place in July 1944. If historical trends hold, then King Dollar’s reign may soon be over. With the worst Presidential Administration in office in modern polling history, one reckless decision after another by Biden’s handlers brings this day closer

and closer to reality. Such a change would alter life in the U.S. as we know it.

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BIO: Joseph Gradante, financial expert and founder of Allio Finance, the first Machine Learning investment engine built on FSO (Full-Scale Optimization).

He cofounded Allio Finance in 2020 with a particular focus on helping millennials and Gen-z’ers invest and save money.

Gradante has an extensive background in capital markets, having spent several years as a buy-side global macro strategist, sales trader, and private money manager.

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Joseph Gradante is a financial expert and founder of Allio Finance, the first Machine Learning investment engine built on FSO (Full-Scale Optimization).