Trump’s Tug-of-War: How ‘Make DOLLAR Great Again’ Could Change the World Economy
As talk spreads about the US dollar losing its stronghold in world trade, a new chapter may be opening. Donald Trump is back in the news with a clear message for BRICS and, especially, for India’s Prime Minister Modi. This time, the fate of the dollar—and perhaps the global economy itself—hangs in the balance.
Key Takeaways
- Trump’s strategy isn’t only about elections—it’s about keeping America centre stage globally.
- De-dollarisation could take away America’s edge, upsetting trade and politics worldwide.
- Tariffs and threats are part of Trump’s plan to keep countries tied to the dollar.
- The BRICS bloc is emerging as a real challenger to US currency control.
- Trust, not gold, now supports world money—making things uncertain for everyone.
Trump’s Style: It’s All About Control
Trump’s method isn’t complicated. He uses every handshake and policy like a test of strength—a tug, a grip, and a pat on the hand. It’s less about friendship, more about showing who’s the boss. This simple routine spills over into his politics and plans for the US economy.
He hasn’t even reached the White House, but he has started setting expectations. Illegal immigration and drugs? He told Canada and Mexico it’s their problem. Solve it, or face a 25% tariff. It’s a threat, but even without real action, it causes trouble. You see leaders like Justin Trudeau flying to beg for talks. That’s Trump: using pressure before policy, control before compromise.
The Dollar’s Journey: From Gold to Trust
The dollar wasn’t always the king of currency. Back in the 1920s, Europe, shaken by war, moved its gold to the safety of America. It wasn’t about helping the US; it was just practical.
1944 changed everything with the Bretton Woods deal. Over 40 countries agreed: their money would stick close to the dollar, and the dollar was tied to gold (at $35 for an ounce). Suddenly, the whole system ran on dollars.
But nothing lasts. In the 1970s, as countries like Japan and those in Europe grew stronger, they started playing with their currencies for their own benefit while America lagged. This led to Nixon dropping the gold link in 1971:
| Year | Dollar and Gold | Effect |
|---|---|---|
| Before 1971 | Linked | Stable, gold-backed |
| After 1971 | Unlinked (fiat) | Relying on trust, not gold |
The dollar became what they call a ‘fiat’ currency: it only has value because people believe in the US government. That belief? It can get shaky—especially with crises and wars.
Big dollar shocks:
- 2008: America prints money to fix a financial meltdown—its value drops.
- 2014: After Russia snatched Crimea, America froze them out via dollar sanctions.
- 2020: The pandemic—America prints $3 trillion, fuelling inflation everywhere.
- 2022: War in Ukraine—America blocks Russia from using dollars, freezing billions.
No wonder countries are nervous.
The Rise of De-Dollarisation
Lately, you can’t ignore one word: ‘De-dollarisation’. Put simply, it means:
- Not using the dollar for trade.
- Not holding lots of dollars as reserves.
- Reducing America’s influence in the world market.
Most global reserves are still held in dollars, but the gap is getting smaller—especially with Russia and China trading in roubles and yuan. America’s control over trade through its currency, and especially its ability to cut countries off, just makes others look for backup plans.
Trump’s Master Plan: Squeeze and Scare
Trump’s answer to this threat is blunt. Every BRICS country, including India, is being told: stick with the dollar or pay for it.
- He’s asked these countries to promise not to make any new currency or back each other's.
- If they refuse, he says, America will double tariffs—making their goods twice as expensive in the US.
- That’s 100% tariffs, enough to really hurt export-driven economies.
It’s a classic Trump move: pull people close, keep them in his grip, and warn that life will be harder if they break free.
Who’s Really Breaking Up With the Dollar?
You might think it’s the BRICS leading the charge. But, as Russian officials point out, it was America that cut them off from the dollar first. They didn’t want to stop—sanctions forced their hand. With deals now being done in local money, countries like China and Russia are making their own rules.
Meanwhile, the world’s going back to basics. Gold is popular again. China has quietly stockpiled gold, maybe even more than anyone else, putting extra heat on the US.
What Does It All Mean?
There’s a lesson here: in geopolitics, there are no lifelong friends, only temporary allies. Even if India isn’t set on a new currency, it’s clearly hedging bets by buying gold. Trust in the dollar isn’t dead yet, but the ground feels shaky.
So, whether Trump’s plan to dominate, control, and assure will work is anyone’s guess. One thing is clear: as America pushes back, the rest of the world is taking a hard look at where they keep their money—and who they can trust next.
