Danish Bank Warns: Trump Could "blow up dollar"
A Danish investment bank has compiled a list of improbable events that, if they were to occur, would create significant turbulence in the markets. Read Full Article at RT.com
TroibNews 
Denmark’s Saxo Bank has unveiled its annual compilation of “outrageous predictions,” which explores potential but improbable events that could disrupt global financial markets in 2025.
In this year's outlook, Saxo suggests that the world will seek alternatives to the US dollar after a Donald Trump administration introduces substantial tariffs on imports and reduces government spending, aided by an Elon Musk-led Department of Government Efficiency. “The implications for the US dollar are dire for trade around the world, as it cuts off the needed supply of dollars to keep the wheels of the global USD system turning, ironically risking a powerful spike higher in the US dollar,” remarked John Hardy, Saxo’s chief macro strategist.
As a consequence, the cryptocurrency market is projected to quadruple to over $10 trillion, while the dollar is expected to drop 20% against major currencies and 30% versus gold.
Additionally, analysts at the Copenhagen-based bank forecast that Nvidia's market valuation might surge to double that of Apple, driven by expanded availability of its innovative 208-billion transistor Blackwell chip. “With the intensifying AI arms race as no giant or even government wants to be left behind, and as AI data centre electricity costs have soared, the insatiable demand for the more powerful and yet less power-hungry Blackwell chips sees Nvidia taking the crown as the most profitable company of all time,” the bank stated.
This could propel Nvidia's stock price from its current nearly $139 to “well north” of $250, prompting market speculation about how much higher it can rise.
Another potential scenario that might create ripples in global markets involves China implementing a fiscal stimulus of 50 trillion yuan in 2025 and subsequent years to “reflate” its economy. “Much of the spending goes directly into consumers’ pockets via e-CNY digital currency, so that it will be injected straight into the economy rather than to pay off debt,” explained Charu Chanana, the bank's Chief Investment Strategist.
According to her, these measures could trigger a “strong reflationary impact” in China and globally, along with increased commodity prices.
Furthermore, Saxo's predictions include an unlikely event where the Organization of Petroleum Exporting Countries (OPEC) may become “irrelevant” next year due to the growing popularity and affordability of electric vehicles. “With some members already cheating production quotas to grab what income they can and export demand falling, a majority of members quickly realize the jig is up. Amidst the bickering and in-fighting, key members leave. This consigns OPEC to the ash heap of history. Former members max out production to ensure market share, driving a large drop in oil prices,” the bank explained.
Other forecasts for 2025 involve the UK pound sterling eliminating the post-Brexit discount against the euro, the US imposing a “huge” AI data center tax amid rising power prices, and the creation of the first fully functional human heart through 3D bioprinting technology.
Lucas Dupont contributed to this report for TROIB News
In this year's outlook, Saxo suggests that the world will seek alternatives to the US dollar after a Donald Trump administration introduces substantial tariffs on imports and reduces government spending, aided by an Elon Musk-led Department of Government Efficiency. “The implications for the US dollar are dire for trade around the world, as it cuts off the needed supply of dollars to keep the wheels of the global USD system turning, ironically risking a powerful spike higher in the US dollar,” remarked John Hardy, Saxo’s chief macro strategist.
As a consequence, the cryptocurrency market is projected to quadruple to over $10 trillion, while the dollar is expected to drop 20% against major currencies and 30% versus gold.
Additionally, analysts at the Copenhagen-based bank forecast that Nvidia's market valuation might surge to double that of Apple, driven by expanded availability of its innovative 208-billion transistor Blackwell chip. “With the intensifying AI arms race as no giant or even government wants to be left behind, and as AI data centre electricity costs have soared, the insatiable demand for the more powerful and yet less power-hungry Blackwell chips sees Nvidia taking the crown as the most profitable company of all time,” the bank stated.
This could propel Nvidia's stock price from its current nearly $139 to “well north” of $250, prompting market speculation about how much higher it can rise.
Another potential scenario that might create ripples in global markets involves China implementing a fiscal stimulus of 50 trillion yuan in 2025 and subsequent years to “reflate” its economy. “Much of the spending goes directly into consumers’ pockets via e-CNY digital currency, so that it will be injected straight into the economy rather than to pay off debt,” explained Charu Chanana, the bank's Chief Investment Strategist.
According to her, these measures could trigger a “strong reflationary impact” in China and globally, along with increased commodity prices.
Furthermore, Saxo's predictions include an unlikely event where the Organization of Petroleum Exporting Countries (OPEC) may become “irrelevant” next year due to the growing popularity and affordability of electric vehicles. “With some members already cheating production quotas to grab what income they can and export demand falling, a majority of members quickly realize the jig is up. Amidst the bickering and in-fighting, key members leave. This consigns OPEC to the ash heap of history. Former members max out production to ensure market share, driving a large drop in oil prices,” the bank explained.
Other forecasts for 2025 involve the UK pound sterling eliminating the post-Brexit discount against the euro, the US imposing a “huge” AI data center tax amid rising power prices, and the creation of the first fully functional human heart through 3D bioprinting technology.
Lucas Dupont contributed to this report for TROIB News
