Billionaire enterprise capitalist Chamath Palihapitiya believes {that a} long-term decline of the US greenback is just not an existential concern for America.
In a brand new episode of the All-In podcast, host Jason Calacanis highlights that the US greenback index (DXY) witnessed its worst first-half efficiency in over 50 years after dropping almost 11% of its worth towards different main currencies within the first six months of 2025.
Whereas Calacanis describes the hunch as “stunning,” Palihapitiya argues that the greenback has been in decline for many years, and it’s not a serious concern as a result of the good points from US belongings have persistently outweighed the foreign money’s depreciation.
“This has been a one-way commerce for a really very long time, and it’s in all probability vital to know why that’s. And I feel it usually has to do with the truth that america funds loads of progress, and that has been the appropriate resolution.
Except you see an entire collapse within the foreign money, I think that this decay continues to occur. So the query is, is it a foul factor? And the reply is it relies upon.
As a result of if asset costs improve sooner than the greenback devalues, you’re nonetheless forward… In case you have a look at asset costs in america relative to asset costs anywhere else on this planet, it’s the flight to high quality, which is to say it’s the factor that everyone needs to personal. And also you see that within the fairness markets, you see it in actual property, you see it in laborious belongings…
The truth is that lots of people nonetheless wish to personal these belongings greater than they wish to personal different belongings and people belongings are dollar-denominated.”
Palihipatiya additionally highlights that there might be a continuing demand for dollar-denominated belongings so long as “there’s American ingenuity and American supremacy,” which might meaningfully offset the draw back of holding USD.
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