They Say the US Dollar Is Overvalued — But Will It Collapse? 🤔

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In the shadowed corridors of financial despair, where greed and folly intertwine like lovers in a tragic dance, the deputy chief investment officer (CIO) of the so-called “asset manager” DoubleLine Capital—oh, what a grand name—comes forth with a whisper of doom. Yes, he dares to declare that the mighty greenback, that symbol of American strength and economic prowess, has been inflated, overvalued, for “many years now.” Aye, many years—long enough for us to forget what honest labor and virtue even looked like, replaced by speculation and the ghostly hope of profit.

Jeffrey Sherman—his name sounds like a character from a Dostoevskian novel—tells us in that so-called interview with CNBC that capital is fleeing faster than damned souls from purgatory. Why? Because, evidently, the dollar is a kind of grand illusion, a fleeting mirage on the desert of global finance.

“If you look at measures of purchasing power parity and thinking about the dollar, and on a trade-weighted basket, the dollar has been overvalued for many years now.” —a truth wrapped in sarcasm, as if the dollar is some overgrown, bloated figure stumbling through the marketplace, weighed down by its own hubris.

Sherman, ever the prophet of doom, claims that Trump’s administration and the treasury’s Scott Bessent desire a weaker dollar—because, of course, what better way to salve the wounds of a nation than by devaluing its currency? Oh, sweet irony! A policy designed to “help absorb” the chaos, as if the dollar’s level were some fragile vessel on the verge of sinking into insignificance.

Furthermore, he insists that gold, that ancient and everlasting treasure, grows ever more alluring. DoubleLine, he says, continues to recommend gold—because nothing screams stability like a shiny metal in a world gone mad.

“We have noticed that gold continues to ratchet up, it ratchets up in every currency and you’ve noticed central banks around the world continue to have very strong demand for that. So that also augurs for a weaker dollar as well.” —a fancy way of saying that even the whirling chaos of global finance knows that gold is the real king, not this overhyped paper promise.

The U.S. Dollar Index (DXY), that pitiable symbol of national pride, has been bleeding its value — nearly 0.5% lost in the last month, almost 5% in three months, and nigh 9% year to date. Ah, the irony! The mighty dollar, trembling like a fragile leaf in Dostoevsky’s winter wind, destined perhaps to fall, to give way to the inevitable.

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2025-06-04 17:44