US Economic Credibility Erodes: Dollar Weakness, Gold Repatriation, Bond Aversion

The Trump administration's fiscal expansion and aggressive sanctions are undermining global confidence in US assets, with investors shunning Treasuries and foreign governments repatriating gold from US vaults. This marks a shift in the dollar's status as a safe haven, though the extent of actual capital flight remains unquantified. The trend, if sustained, could raise US borrowing costs and accelerate de-dollarization efforts.