The Story Why the dollar is crashing – and why you should care
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Jun 3, 2025 
Mehreen Khan, Economics Editor at The Times, provides keen insights on the current turmoil surrounding the US dollar's stability. She discusses how recent court rulings are shaking confidence in American assets and examines the potential for intentional dollar devaluation and its repercussions on everyday citizens. Khan also highlights the challenges of maintaining the dollar's status as a global reserve currency amidst competition from the euro and the renminbi. The conversation uncovers the implications of US economic policies on manufacturing and employment.
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Budget Bill Deepens Deficit
- Trump’s budget bill aims to add $6-7 trillion to the deficit, relying heavily on tariff revenues.
- If tariffs are dismantled, the fiscal outlook worsens, further stressing the dollar.
Global Impact of Dollar Value
- The dollar’s value impacts currencies worldwide, like the British pound.
- A fundamental collapse of the dollar standard could cause wide-reaching economic pain.
Reserve Currency Explained
- A global reserve currency means worldwide demand due to perceived safety and backing by the largest economy.
- The US dollar remains dominant because of US economic power, military strength, and rule of law.