Devaluation (Continued)

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Macroeconomics · Inflation · Trade · Political Power · economy

The lemon cleaner smells sharper now, mixed with wood smoke drifting in from outside. The stools remain empty.

He remembers his father talking about the 1970s — inflation, uncertainty, the sense that money itself had grown unreliable for a while. He wonders how his granddaughter will describe this period someday.

He counts the till carefully. Same ritual. Same drawer. Lighter feeling.

“People think currency problems happen somewhere else,” he says, looking out toward the quiet crossing.

They don’t. They happen where policy becomes unpredictable, where institutions are treated as tools, and where ordinary people are told not to worry while those with options quietly prepare.

And the longer this is treated as normal, the more permanent it becomes.

The bar smells the same.

The dollars don’t.

Biibliography

1 Reuters. “Canadian Visitors Flee Maine Border Towns as US Tariffs Rise.” Reporting on the collapse of cross-border commerce in northern Maine and interviews with business owners and officials describing the loss of Canadian visitors amid tariffs and political hostility.

2 Reuters. “Dollar Under Fire Again as Investors Reassess Trump Policies.” Coverage of the U.S. dollar’s decline linked to tariff volatility, shutdown risk, and pressure on the Federal Reserve.

3 CBS News. “The U.S. Dollar Just Fell to Its Lowest Level in 4 Years. Here’s Why.” Analysis of the factors driving dollar weakness including fiscal uncertainty, policy signaling, and investor confidence.

4 Reuters. “Be Careful What You Wish for on a Weaker Dollar.” Reporting on Nordic pension funds reducing exposure to U.S. Treasuries due to concerns about U.S. policy unpredictability.

5 Reuters. “Foreign Demand for U.S. Treasuries Holds Off Bond Vigilantes.” Data on foreign ownership of U.S. government debt and the implications for borrowing costs and yields.

6 Reuters and Funds Society. “Gold Blasts Past Record Highs.” Coverage of record gold prices and increased demand for safe-haven assets amid currency and political risk.

7 Reuters. “The Best Dollar Debasement Trade Is to Do Nothing.” Strategy analysis discussing diversification into foreign currencies such as the Swiss franc during periods of dollar weakness.

8 Investopedia. “Dollar Hits 4-Year Low — How It Could Impact Your Wallet.”

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