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Devaluation of US Dollar Has global Repercussions

June 15, 2024

The US Dollar Has Devalued Signifigantly since 2020 - Global Ramifications


Bangladesh, Nigeria, Argentina, Egypt, Ghana, Lebanon, Nigeria, Pakistan, Sri Lanka and Zimbabwe are all facing devaluation


Currency devaluation is an economic strategy employed by a country's government to deliberately lower the value of its currency. Since the abandonment of the gold standard and the shift to freely floating exchange rates, numerous instances of currency devaluation have negatively impacted not only the citizens of the devaluing country but also the global economy. Given the broad potential fallout, why do countries choose to devalue their currency? In essence, nations devalue their currency to stimulate exports, reduce trade deficits, and alleviate sovereign debt burdens. Below, we delve into the concept of currency devaluation and explore the motivations behind it.


- Currency devaluation involves implementing measures to deliberately reduce the purchasing power of a country's currency.

- This strategy is often pursued to achieve a competitive advantage in international trade and to ease sovereign debt obligations.

- Despite its potential benefits, devaluation can also lead to unintended and self-defeating consequences.   (Source)


The Devaluation Ruining Emerging Markets Currencies  


In recent years, the global economic landscape has been marked by a significant trend: the devaluation of currencies across a broad spectrum of emerging markets. This phenomenon, far from being sporadic or isolated, has evolved into a pervasive pattern, affecting countries from Nigeria to Egypt and beyond. Such widespread currency devaluation is not merely a series of unrelated financial events but rather a reflection of deeper, interconnected economic forces at play on the global stage.


The roots of this trend can be traced back to several key factors that have collectively exerted downward pressure on emerging market currencies. Among these are the strengthening of the US dollar, fluctuations in commodity prices, and shifts in investor sentiment away from riskier assets. Additionally, many emerging economies have grappled with internal challenges such as political instability, high levels of debt, and inflationary pressures that further weaken their currencies.


Recognize that currency devaluation is not solely a negative phenomenon; it can enhance competitiveness in international markets ... and in this case, a global shift to Tokenization

What is a an Emerging Market? And why is their currencies devaluing



One of the most telling early signs has been the persistent inflationary pressures that have plagued emerging markets.


Inflation erodes purchasing power and reduces the real value of local currency savings, compelling central banks to adjust monetary policies, often leading to devaluation.


For instance, Nigeria and Egypt have experienced significant inflation spikes due to various factors including increased government spending and fluctuations in global oil prices.


These pressures force governments to devalue their currencies in an attempt to make their exports more competitive on the international stage. Another indicator is the growing current account deficits experienced by these countries. As imports become more expensive and exports lose value due to weaker global demand, the balance of payments worsens, putting additional pressure on domestic currencies. This scenario often results in governments devaluing their currency to correct imbalances, albeit at the cost of further inflationary pressure.


Foreign debt levels also serve as a precursor to currency devaluation. Emerging markets with high levels of debt denominated in foreign currencies find themselves particularly vulnerable when their own currencies weaken. As it becomes more expensive to service this debt, governments may resort to printing more money or seeking bailouts from international financial institutions - actions that can lead directly or indirectly to currency devaluation.



Furthermore, political instability and lackluster economic reforms contribute significantly to investor sentiment and confidence levels towards emerging markets. When investors perceive risks associated with governance or policy direction, capital flight ensues – resulting in decreased demand for the local currency which subsequently leads to its devaluation. These early signs are critical indicators for policymakers and investors alike; they highlight not only immediate economic challenges but also underscore structural issues within these economies that need addressing.

Nigeria And Egypt: Case Studies Of Currency Devaluation


Both countries illustrate the delicate balance emerging markets must strike in pursuing currency devaluation as an economic strategy. Devaluation can make exports more competitive on the global stage and attract foreign investment by making assets cheaper; however, it can also lead to inflationary spirals that erode purchasing power domestically and increase living costs for citizens.


As emerging markets like Nigeria and Egypt continue to navigate their paths through economic reform and restructuring, their experiences offer critical insights into the broader dynamics of currency devaluation within developing economies. These case studies not only highlight the immediate impacts on financial markets but also underscore the profound effects on everyday citizens' lives—making it clear that while devaluation might be an essential tool for economic adjustment, its success is intricately linked to broader socio-economic policies and global market forces.


Factors Driving The Devaluation Run In Emerging Economies


One driving force behind this trend is the tightening monetary policy in developed countries, particularly in the United States. As the Federal Reserve hikes interest rates to combat inflation, investors often reallocate capital towards higher-yielding assets in developed markets. External shocks like fluctuations in commodity prices also play a role. Many emerging economies depend heavily on commodity exports; thus, any downturn in global commodity prices directly impacts their trade balances and currency valuations.


The devaluation run observed in emerging markets like Nigeria and Egypt is not an isolated event but rather the result of various interconnected factors ranging from global economic shifts and trade imbalances to internal political and economic challenges. Understanding these drivers is crucial for stakeholders looking to navigate the complexities of investing or operating within these volatile markets.


"IntelBrief: Biden Administration Shifts in U.S. Middle East Policy - The Soufan Center", thesoufancenter.org, Unknown, https://thesoufancenter.org/intelbrief-biden-administration-shifts-in-u-s-middle-east-policy/, Web, Accessed 10. May 2024


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"Democrats consider changing course on Israel support | On Point", wbur.org, Unknown, https://www.wbur.org/onpoint/2024/04/10/democrats-israel-support-biden-military-aid, Web, Accessed 10. May 2024


"How Biden could get tough on Israel -- if that's what he wants - Vox", vox.com, Unknown, https://www.vox.com/world-politics/24101020/biden-netanyahu-israel-gaza-pressure-leverage-arms-un, Web, Accessed 10. May 2024



By STAFF WRITER February 23, 2025
The Department Of Government Efficiency's Investigation - > The finale of Beast Games, the record-breaking reality competition series created by YouTube star MrBeast (Jimmy Donaldson) and streamed on Prime Video, revealed its winner on February 13, 2025. Player 831, Jeffrey Randall Allen, took home the largest cash prize in TV history—$10 million—after outlasting 1,000 contestants in a series of intense physical, mental, and social challenges. The prize doubled from $5 million to $10 million following a dramatic coin toss in the penultimate episode, making Allen's victory even more monumental. Allen's win came after a nail-biting final challenge where he and Player 830, Twana Barnett, had to choose from ten briefcases, one containing the $10 million cheque. Allen guessed correctly on his first try and plans to use part of his winnings to fund research for his son's rare condition, Creatine Transporter Deficiency. While Allen claimed the top prize, MrBeast revealed that over $20 million in prizes were distributed among 85 contestants, including a $1.8 million private island won by Player 952, Mia Speight .Beast Game has been lauded for its massive scale and record-breaking 50 Guinness World Records, becoming Prime Video's most-watched unscripted show with 50 million global views. While Season 2 has not been officially confirmed, MrBeast has expressed confidence in its continuation, leaving fans eager for more high-stakes drama and unprecedented prizes. Beast Games Controversy Beast Games is a reality competition series created by YouTube star Jimmy Donaldson , known by his online alias MrBeast , in partnership with Amazon Prime Video . Launched in 2024, the show features 1,000 contestants competing in high-stakes, elaborate challenges for the chance to win what was initially a $5 million grand prize, later increased to $10 million in the first season, marking it as the largest single cash prize in the history of television and streaming. T he format of Beast Games is inspired by both MrBeast's popular YouTube challenge videos and the global phenomenon " Squid Game ," although without the lethal consequences. Contestants participate in a mix of physical, mental, and social challenges, set in grand, purpose-built environments, including a specially constructed city dubbed " Beast City ." The show has attracted significant attention for its scale, with a reported production budget over $100 million , and for breaking numerous world records during its filming. Beast Game premiered on December 19, 2024, with episodes released weekly on Prime Video. Despite its popularity, with over 50 million viewers in the first 25 days, it has also faced criticism for its high-stakes nature, the potential message it sends about money, and controversy surrounding alleged poor working conditions during production. Nevertheless, it represents a significant crossover of online content creators into mainstream media, showcasing MrBeast's ability to captivate an audience across different platforms. s beast games season 2 confirmed ? Yes, MrBeast (Jimmy Donaldson) has expressed confidence in the continuation of the series. In interviews, he has hinted at plans for future seasons, stating, "I love what we did with Beast Games... There's no way we're not," indicating a strong likelihood of a Season 2. Web Content : Articles from various sources, like esports.gg and Yahoo, have discussed the potential for Season 2, with some citing MrBeast's comments as a near-confirmation, although no official announcement from Amazon has been made. Application Website : The official Beast Games website encourages people to sign up for notifications when applications for future seasons reopen, suggesting planning for more seasons. Social Media Sentiment : Posts on X (formerly Twitter) reflect fan anticipation and speculation about a Season 2, with some users even claiming to have inside knowledge or interpreting MrBeast's hints as confirmations. W hile these signs collectively point towards a high probability of Beast Games returning for a second season, without an official statement from Amazon Prime Video, it remains unconfirmed. The show's viewership success and MrBeast's enthusiasm suggest fans should keep an eye out for an official announcement, which might come around or shortly after the Season 1 finale.
By STAFF WRITER February 19, 2025
In a bold statement President Donald Trump has claimed that Elon Musk is on the brink of exposing vast amounts of fraud and misuse of funds within the U.S. Pentagon. Trump's Expectations at Pentagon: Musk Will Expose Massive Pentagon Fraud " We're going to find billions, hundreds of billions of dollars of fraud and abuse, " as reported by multiple sources including Reuters, Al Jazeera, and Fox News. Musk's Role: Elon Musk has been appointed to head DOGE, giving him access to confidential information across government agencies. His involvement has raised concerns about conflicts of interest, especially since his companies, like SpaceX, have significant contracts with the Pentagon. Pentagon Budget: With a budget approaching $1 trillion annually, the Pentagon's spending has been under scrutiny. Trump's directive for Musk to audit military spending includes a focus on areas like shipbuilding, which has been criticized for being overly costly and slow. Elon Musk's Role In Unveiling Government Mismanagement Critics argue that Musk's actions, perceived as purging US government positions, are undermining the democratic framework, describing it as an "evisceration of democracy". Seen her: https://www.murphy.senate.gov/newsroom/press-releases/murphy-on-abcs-this-week-this-is-a-red-alert-moment-our-democracy-is-at-risk However, Musk's supporters insist that his efforts are necessary to expose and address deeply entrenched inefficiencies and corrupt practices within government operations. They argue that his mission is not to dismantle but to reform, pushing for a more accountable and transparent system. Ceo Targets Alleged Corruption Elon Musk, the CEO of both Tesla and SpaceX, has been thrust into the spotlight as he undertakes an audacious campaign targeting alleged corruption within the United States government. Musk's initiative has gained significant attention, especially after former President Donald Trump publicly supported him in exposing what they claim to be "billions in fraud and abuse" within the Pentagon. This crusade is not merely investigative; it appears to be a deeper, structural overhaul aimed at rooting out inefficiencies and questionable practices. The endeavor has sparked a wave of controversy and debate across the political spectrum. On one hand, proponents argue that Musk's actions represent a necessary intervention. By shedding light on potential misuse of funds and systemic corruption, Musk could lead a movement toward greater transparency and accountability within government ranks. Such measures could potentially result in substantial savings and better allocation of taxpayer dollars. Critics Warn Against Dismantling Of 'Democratic Structures' Critics are expressing growing concern over what they perceive as a dangerous dismantling of democratic structures in the United States, following recent assertions by former President Donald Trump. Trump claims that Elon Musk, the influential entrepreneur at the helm of SpaceX and Tesla, is on a mission to expose widespread fraud and abuse within the Pentagon. Concurrently, Musk is reportedly orchestrating extensive job cuts within U.S. government sectors, a move opponents argue threatens to erode foundational democratic principles. These critics argue that while rooting out corruption is critical, the approach of purging government positions en masse risks destabilizing democratic institutions designed to uphold transparency and accountability. The significant reduction in workforce can lead to a diminished capacity for effective governance, potentially leaving critical areas in jeopardy. Beyond the immediate impact on governance, there are deeper concerns about the precedent such actions might set. Context The Pentagon has failed Their last 7 Audits The Department of Defense (DoD) has been unable to pass its financial audits since audits became mandatory in 2018. This failure streak was highlighted in various news outlets, including The Hill, Reuters, and Defense News, where it was noted that the Pentagon failed its seventh consecutive audit in November 2024. Audit Results: The audits have consistently resulted in a "disclaimer of opinion," meaning auditors couldn't form an opinion due to insufficient, appropriate evidence. This has been attributed to the vast and decentralized nature of the DoD's assets and liabilities, spread across thousands of locations worldwide. This has created a new political climate where figures like Trump can leverage public sentiment to push for reforms or investigations. The Doge Connection From Trump and Musk: A Business Mindset in American Government Trump's Stance: Trump has used these failures as ammunition to argue for a need for drastic reform, often citing the need to eliminate "waste, fraud, and abuse" in government spending. His appointment of Musk to a role like DOGE can be seen as an attempt to bring in an outsider with a reputation for innovation and efficiency to tackle this issue. Musk's Involvement: Elon Musk's task, under Trump's directive, aligns with the narrative that the Pentagon's financial management is in dire need of overhaul. Musk's role could be seen as an effort to apply business-like scrutiny to government operations, potentially using technology or innovative audit strategies to address the issues the traditional audits have failed to resolve. Positive View: If successful, this initiative could uncover inefficiencies or actual fraud, leading to significant savings or better allocation of resources. It might also improve public trust in how defense dollars are spent. Skeptical View: Critics might argue that this is more about political theater or using the audit failures for political gain. There's also skepticism about whether Musk, with his business interests, can be an impartial overseer, especially given his companies' contracts with the DoD. The initiative faces legal, ethical, and practical challenges. The lack of passed audits over the years suggests systemic problems that might not be easily solved by a single initiative, no matter how well-intentioned or led by a figure like Musk. Trump's assertion that Musk is poised to reveal substantial fraud and abuse within the Pentagon has raised eyebrows, not only because of the gravity of the allegation but also due to the broader implications of involving a private sector mogul so deeply in public sector matters.
USAID Afghanistan
By STAFF WRITER February 17, 2025
The funding of ' irrigation canals ' in Afghanistan, amounting to hundreds of millions, has stirred controversy due to its potential misuse by the Taliban, especially in supporting opium production alongside its intended goal of enhancing agricultural productivity. The Craziest part about this, many of links relating to this topic usaid.gov/afghanistan/agriculture-and-food-security sigar.mil/pdf/audits/SIGAR-16-42-AR.pdf nytimes.com/2015/03/11/world/asia/us-aid-to-afghanistan-often-ends-up-in-taliban-hands.html reuters.com/article/us-afghanistan-opium/u-s-aid-program-in-afghanistan-struggles-to-wean-farmers-off-opium-idUSKBN0M715J20150310 crsreports.congress.gov have been taken down... History of USAID Operations in Afganistan and Recent Alegations USAID's involvement in Afghanistan increased significantly after the U.S.-led invasion in 2001, focusing on reconstruction and development. During the Bush administration, efforts were directed towards stabilizing the country post-Taliban, with projects in health, education, and agriculture under Andrew Natsios. Under Obama, with Rajiv Shah at the helm, USAID broadened its scope with initiatives like the Alternative Development Program/North (ADP/N) and Afghanistan Vouchers for Increased Productive Agriculture Plus (AVIPA+) to diversify agricultural products. Hundreds of millions of dollars to fund “irrigation canals, farming equipment, and even fertilizer used to support the unprecedented poppy cultivation and heroin production in Afghanistan,” benefiting the Taliban Afghanistan has been and continues to be a major hub for opium and heroin. Effectiveness and Oversigh t : There have been criticisms regarding how well USAID projects are managed, with funds often not reaching their intended recipients or projects remaining unfinished. Alleged Misuse of Funds : Claims have surfaced that some aid inadvertently supported the opium trade, as funds for agricultural development might have indirectly benefited poppy cultivation. Agricultural Development: Aimed at improving food security, these programs involved providing seeds, fertilizers, and technical assistance to farmers. Projects like ADP/N and AVIPA+ were designed to support alternative crops to reduce opium production. However, the effectiveness and oversight of these projects may have been involved in more nefarious schemes under President Joe Biden. USAID Doors shut after Elon Musk and DOGE Investigation The U.S. Agency for International Development (USAID) has come under scrutiny by the Department of Government Efficiency (DOGE) under the Trump-Musk administration, highlighting several instances of what they describe as "WASTE and ABUSE" within the agency's programs. Here are some things that have already been discovered. $1.5 million to “advance diversity equity and inclusion in Serbia’s workplaces and business communities” $70,000 for production of a “DEI musical” in Ireland $2.5 million for electric vehicles for Vietnam $47,000 for a “transgender opera” in Colombia $32,000 for a “transgender comic book” in Peru $2 million for sex changes and “LGBT activism” in Guatemala $6 million to fund tourism in Egypt source. Hundreds of thousands of dollars for a non-profit linked to designated terrorist organizations — even AFTER an inspector general launched an investigation Millions to EcoHealth Alliance — which was involved in research at the Wuhan lab USAID POPPYSEED PRODUCTION OUT OF AFGHANISTAN: Over recent years, the average annual production of opium poppy in Afghanistan has fluctuated significantly due to various factors including political changes, international intervention, and policy shifts. Before the Taliban's resurgence in 2021, Afghanistan was producing around 6,000 to 9,000 metric tones of opium annually. However, following the Taliban's strict ban on poppy cultivation in April 2022, there was a dramatic decrease, with cultivation dropping by approximately 95% from 2022 to 2023 as per UNODC reports, which translates to a reduction from about 6,200 tones to 333 tones of opium. This has significantly impacted heroin production, which previously could have been up to 320 tonnes of pure heroin from the opium harvest. Before the recent drastic reduction under Taliban rule, Afghanistan indeed supplied over 80% of the world's illicit opium, making it the de facto center for heroin production. Afghanistan has been and continues to be a major hub for opium and heroin. WHY IS USAID BEING INVESTIGATED ? The Department of Government Efficiency recently launched an investigation into the operations and practices of USAID, aiming to scrutinize its efficiency in managing programs and funds. This endeavor underscores the government's commitment to ensuring that federal agencies, particularly those involved in international aid, are held accountable for their financial management and program effectiveness.
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