<div id="readability-page-1"><div id="blog-content">“Look at all the business we are doing”, says Trump.(Click on image to enlarge)<img height="423" src="https://imageproxy.pbkrs.com/https://i0.wp.com/mishtalk.com/wp-content/uploads/2026/01/US-Dollar-Index-Monthly-2026-01-27.png/query-cXVhbGl0eT04MCZyZXNpemU9MTAyNCw2MTkmc3NsPTE?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" original-src="https://imageproxy.pbkrs.com/https://i0.wp.com/mishtalk.com/wp-content/uploads/2026/01/US-Dollar-Index-Monthly-2026-01-27.png/query-cXVhbGl0eT04MCZyZXNpemU9MTAyNCw2MTkmc3NsPTE"/><blockquote><div dir="ltr">🚨BREAKING: Trump Says He SUPPORTS The Dollar’s COLLAPSEpic.twitter.com/hbboNMSjx4</div>— Spencer Hakimian (@SpencerHakimian) January 27, 2026</blockquote> Reporter: Mr. President has the dollar declined too much?Trump: No. I think it’s great. Look at all the business we are doing. No.US Dollar Index Technicals<ul><li>The US dollar index broke long-term trendline.</li><li>First support is ~89</li><li>Next support is ~79</li></ul>Fundamentals<ul><li>Rising deficits</li><li>Pressure on the Fed to cut</li></ul>Understand that a falling dollar makes imports more expensive.Trump is cheering inflation.Treasury Secretary Scott Bessent knows this, but he won’t say it. He is a willing liar for Trump.Bessent on the Strong Dollar Policy Bessent says “The Strong Dollar policy is only doing things over the long haul to ensure that the US dollar remains the reserve currency of the world. And we are. … There is no change in policy.”Lovely, I made a note.Regarding “no change in policy” do you ever talk to Trump, listen to Trump? Do you fail to understand that a weakening dollar means higher prices?And let’s discuss reserves.Gold overtakes Treasuries as the World’s Largest Foreign Reserve AssetOn January 7, 2026 the Economiv Times noted Gold overtakes U.S. Treasuries as the World’s Largest Foreign Reserve Asset.<blockquote>Gold overtakes U.S. Treasuries as the world’s largest foreign reserve asset in 2026: Gold has climbed past U.S. government bonds to become the largest foreign reserve asset held by central banks worldwide, marking a major shift in global financial markets. The total value of gold held by foreign official institutions is now approaching $4 trillion, exceeding roughly $3.9 trillion in U.S. Treasury holdings for the first time since 1996.Central bank governors in emerging markets, particularly in Asia and Eastern Europe, were the primary drivers of this demand. These institutions added over 1,100 tonnes of gold to their vaults in 2025 alone. They viewed the metal as a critical shield against inflation and potential asset freezes. As the U.S. national debt crossed the $38 trillion threshold, the “safe-haven” appeal of Treasuries weakened, leaving gold as the last standing pillar of financial stability.Historically, central bank gold purchases averaged around 473 tonnes annually over much of the 2010s. Recent annual purchases have more than doubled that pace, signaling a structural shift in global reserve management.Forecasts from major investment banks suggest gold could average $5,000 per ounce by the end of the year. The rationale is simple: the factors that drove the 2025 surge—geopolitical friction and high debt—have not been resolved.</blockquote>About Those ForecastsAs I type, Gold is $5,214. So it’s safe to say that gold could average $5,000 per ounce by the end of the year.And don’t look now (damn it, you looked) silver blasted through $100 all the way to $118 and is currently at $112.But that’s OK because inflation is under control and the price of oil is headed to $50 according to Trump.So, there is no need to check in on that idea (damn it you looked again, didn’t you). Well OK. West Texas Crude is up over 3 percent to $62.67.Unfortunately, oil is priced in barrels not ounces.A standard barrel of WTI (West Texas Intermediate) crude oil contains 42 U.S. gallons. As there are 128 fluid ounces in one U.S. gallon, a single barrel of crude oil equals 5,376 fluid ounces.Price per ounce, oil is only $0.012. The administration needs to get on the bandwagon with this comparison.A 16-ounce bottle of WTI crude would only be 14 cents, much cheaper than a bottle of water.How come no one is promoting this?Oil Has BottomedI am willing to go out on a limb here and suggest oil bottomed at $55 in mid-December.If so, oil is going to be adding to inflation this year.Of course, demand could crash if jobs crash, but that’s one hell of a way to get to the $50 per barrel that Trump wants.Related PostsJanuary 25, 2026: US Will Not Offer Security to Oil Firms in Venezuela, So Why Go?<blockquote>Is the US going to run Venezuela or not? Maybe it runs itself.</blockquote>January 27, 2026: What Do Truck Shipping Indexes Say About the US Economy?<blockquote>Here’s a chart making the rounds. What does it say?</blockquote>January 27, 2026: Consumer Confidence Dives to the Lowest Point since 2014, Below Covid Low<blockquote>“Confidence collapsed in January.” But Why?</blockquote><hr/>More By This Author:What Do Truck Shipping Indexes Say About The U.S. Economy? Consumer Confidence Dives To The Lowest Point Since 2014, Below Covid Low Japan’s Prime Minister Warns Japan Is Ready To Act On Speculative Yen Moves </div></div>

Trump expressed support for the decline of the U.S. dollar, stating it benefits business. The U.S. dollar index has broken a long-term trendline, with support levels at ~89 and ~79. Rising deficits and pressure on the Fed are contributing factors. Meanwhile, gold has surpassed U.S. Treasuries as the largest foreign reserve asset, driven by central bank purchases amid inflation concerns. Forecasts suggest gold could average $5,000 per ounce by year-end, while oil prices are also projected to rise, adding to inflation.

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Trump Cheers A Plunge Of The U.S. Dollar “I Think It’s Great”