The US markets and economy are currently under an intense overhaul. The US markets have been witnessing a steady decline as the US dollar continues to weaken. Experts are stating that the US dollar is headed for a further decline in the near future, driving the investor sentiment towards Bitcoin and gold. At the same time, the US Fed jobs data is also reporting stagnating numbers, spelling trouble for the US economy to deal with.
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The US Dollar’s Global Share Is Rapidly Declining
According to the latest update by the Kobeissi Letter, the US dollar’s stature as the reserve currency asset is now standing at a precarious threshold. The platform reported that the US dollar’s reserve currency dominance is now falling, with its forex presence depleting at a consistent pace. The USD’s share in global banks has fallen by 1.5% in Q2, to 56.3%, the lowest it has been since 1994.
“The US dollar’s reserve currency dominance is declining: The US dollar’s share of the world’s central banks’ reserves fell 1.5 percentage points in Q2 2025, to 56.3%, the lowest since 1994. Since 2000, this percentage has declined by 16 points. By comparison, the US dollar reflected 85% of global reserves in 1977. At the current pace, the dollar’s weight could drop below 50% within 5 years. For context, the euro represents ~21.0% and the Chinese yuan ~5.5% of global reserves. Inflation is causing a currency confidence crisis.”
At the same time, rising interest in USD alternatives such as the euro, gold, and yuan has picked up pace, giving tough competition to the dollar as of late.
US Fed Job Data Decline
With the piling pressure on the US economy, another update by the Kobeissi letter reports a drop in the US Fed jobs, signalling a weak economic outlook in the future.
“Shocking stat of the day: US federal government jobs are estimated to drop by roughly -100,000 in September and October. This comes as ~100,000 workers, out of the 154,000 who took the voluntary deferred resignation deal last spring, came off the payrolls on September 30th. This data will be reflected in the October jobs report, reported on November 7th. It will bring the total number of federal workers down to 2.81 million, the lowest since 2019. As a result, federal government jobs would fall to just 1.76% of total nonfarm payrolls, the lowest percentage in records going back to 1939. Federal job losses are accelerating.”
Expert Warns Of A Potential US Economic Heart Attack
According to expert Ray Dalio, the US economy’s debt situation is worsening rapidly, indicative of a blow-up that could mirror a possible heart attack choking the US economy.
“I want to explain in a nutshell why the US debt situation is at a very dangerous inflection point. Put simply, the US is now spending 40% more than we’re taking in. This accumulation of debt service payments has spiraled over decades and is starting to squeeze away buying power. And if you run the numbers. There’s an imbalance between how much debt has to be sold. Who the buyers are, and the likelihood of it all being bought. Together, these two influences are why I worry about suffering an economic heart attack in the near future.”
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