terrorism. confusion. regret.
These must have been thoughts and feelings that ran through Gary Huy’s head.
Not long ago, Holden Day Wilson, a 38-year-old lawyer at Toronto Law Firm, was standing in his office on the 24th floor. Hoy also had an engineering degree specializing in architectural safety and compliance. His academic training instilled an unwavering belief in the unbreakable nature of glass from floor to ceiling in his office.
He frequently threw himself into them to demonstrate the strength of these windows and the robust safety codes they were designed to. This stunt was always greeted with suffocating cheers.
On July 9, 1993, Hui was on a tour of his office with a group of students. After detailing Windows’ rigorous design and safety standards, it’s time to teach students valuable lessons. Like before, he took the running start and threw it at the glass. But then something impossible happened…
The glass wasn’t broken, but it came out of the frame. Hoy plunged into the pavement, which died from the impact.
Speaking about the Toronto Star incident, a structural engineer later on I said: “I don’t know the world’s building codes that allow a 160-pound man to run up to a glass window and endure it.”
Hoy’s death was classified as “accidental automatic defense” (causes falling through the window). He was remembered as “the best and brightest” in the company.
Hoy, without question, had an unreasonable belief in the code and standards. He thought they would protect him from extreme recklessness. He was wrong.
Dollar faith
Like Hoy, American leaders have an irrational belief in the strength of the US dollar. Decades of extreme recklessness demonstrates that no matter what, the dollar will undoubtedly endure.
The dollar was persisting across decades of runaway fiscal deficit and national debt now exceeding $36.7 trillion. The dollar continued to eased quantitatively $9 trillion. The dollar continued through the bailout of numerous banks and a meaningless war. Dollars that have persisted through the coronavirus give Awai and Stimmeecheck.
This track record of dollar success through extreme recklessness misunderstands the US government. Washington believes the dollar can withstand anything it throws. Whatever it is, the dollar will become the reserve currency for world trade and commerce.
This expectation may soon become false. The events that took place shortly after the tariffs on the day of President Trump’s release will quickly blow away value in the not too distant future.
Remember, on April 3, the Nasdaq fell 5.97%, the S&P 500 lost 4.84%, and the Dow fell 3.98%. The following day, on April 4, China imposed a retaliatory tariff of 34%. The NASDAQ then lost another 5.82%, with the S&P 500 down 5.97% and the Dow down 5.5%.
Within two days of release date, the NASDAQ was over 11%, the S&P 500 fell 10%, and the Dow was over 9.48%. In total, more than $6.6 trillion has been lost, equivalent to the largest two-day loss in history.
It was also the first time the Dow had surpassed 1,500 points a day for two consecutive days. It was also the worst two days of history for the S&P 500.
But the real excitement was in the financial market…
A sharp reversal
When the stock market crashes, bond demand will rise first, pushing bond yields forward. The 10-year Treasury bond yield fell to 3.86% on April 4, the lowest yield since October 2024.
This initial decrease in yield was greeted with applause. As yields decrease, interest rates on loans like mortgages will also decrease, making borrowing cheaper. Lower interest rates also reduce the cost of funding government debt.
Team Trump said this is all part of a plan to cut borrowing costs. It even argued that lower interest rates are one of the advantages of many fringes of tariff policy.
But then something unexpected happened. The bond market turned sharply, and began to crash, bringing higher yields.
The Ministry of Finance’s harvest in 2010 had increased by up to 4.5% by the morning of April 9th. At the same time, the yield on 30-year Treasury debt rose 4.92% on 54 basis points.
Has there been a tax-driven rise in inflation expectations been raised? Was it forced by a margin call amid the stock market crash?
Or were US government bonds dumped by foreign investors and governments who had lost faith in the US government? Put another way, don’t foreign investors and governments trust the United States is a safe and stable place to make money?
By April 9th, Treasury Secretary Scott Bescent and Commerce Secretary Howard Rutnick had convinced Trump so much that he couldn’t stand the sale of the bond market. Trump has announced a 90-day suspension of tariffs, excluding China.
The stock market then surged and bond yields recede. We expect this relief to be short-lived. There was too much damage…
Causing the fateful end of the dollar
dollars measured in Dollar Indexwhich has decreased by about 7.68% since January 1st. In the world of currency, a 7.68% decline has been significantly reduced in four months.
This means imports will be more expensive even without Trump’s tariffs. At the same time, American exports are more competitive, which supports Trump’s intention to boost American manufacturing through weaker dollars.
Gold, another barometer of dollar value loss, has grown by more than 21% since the start of the year. The rise in gold prices is driven by record demand from central banks.
According to World Gold CouncilThe central bank collectively added 1,045 tonnes to its global reserve in 2024. This marks the third consecutive year of central bank purchases exceeding 1,000 tonnes, far exceeding the annual average of 473 tonnes between 2010 and 2021. 244 tons into their global reserves.
However, it’s not just the central bank that buys money. In 2025, gold investor demand also increased significantly. Around Discovery Alerts:
“The correlation between tariff announcements and gold price movements is becoming increasingly pronounced. Data shows that the major trade policy declarations for the past 18 months coincided with an average rise in gold prices of 2.3% the week following such an announcement.
“Institutional investors responded by increasing gold metal allocations in 2025. Gold ETF holdings increased by 14% year-on-year in 2025. This change reflects the implementation of volatile policies and a decline in confidence in US dollar assets due to concerns about retaliation measures from trading partners that could further destabilise the global market.”
The message is clear. Central banks and investors have lost faith in the dollar as a stable reserve asset. Diversifying assets other than dollars is wise and logical.
Additionally, this week, the Commerce Department reported that US GDP had signed a contract. 0.3% In the first quarter of 2025. As the US economy continues to shrink, Washington will be forced to stimulate growth through printing presses.
With a lack of already widespread confidence, throwing the dollar further to stimulate growth could ultimately trigger a complete loss of trust. Then, like Hoy, and because of the regrets of dollar holders around the world, the dollar could plummet into its fateful end mise.
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From the heart,
Mn Gordon
For economic prism
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