Blue-collar Americans expect inflation near 7% despite falling rent and gas prices. BlackRock warns bonds no longer a safe hedge. This year will be tough. The dollar collapse is happening right now.

IMF prepares for global run on US dollar
The EU should issue more common debt to provide investors with an alternative safe asset to gold and US Treasuries, the Fund’s managing director said

The International Monetary Fund is preparing for the possibility of a rapid sell-off of US dollar-denominated assets, its managing director, Kristalina Georgieva, said on Monday.

“At the Fund, one muscle that we are building is our ability to hypothetically present scenarios of unthinkable events and then figure out what to do,” Georgieva said at an event hosted by Bruegel, a Brussels-based think-tank.

Asked whether the scenarios include a potential run on dollar assets, Georgieva said the Fund runs “all kinds of scenarios” and that it was examining the issue as part of its ongoing analysis.

Her comments come as Donald Trump’s sweeping tariffs and attacks on the Federal Reserve’s independence and the rule of law have sparked deep investor unease about the status of the dollar, which has dominated global finance since the end of the Second World War.

The greenback’s value has fallen more than 9% against a basket of other currencies since Trump’s return to the White House in January 2025. The dollar’s decline against the euro has been even steeper, at just under 12%.

Fears about the greenback’s continued status as a ‘safe haven’ have also caused investors to pile into gold, with the price of bullion reaching a record high of $5,100 per troy ounce on Monday.

https://www.euractiv.com/news/imf-prepares-for-global-run-on-us-dollar/?dm_i=7NTX,IS8E,6HEI61,36KSE,1,0,0,0