Trump Unleashes Market Mayhem

● Trump’s Market Turmoil

Dollar’s Changes and Future of Financial Landscape Amid Recent Stock Market Turmoil

Dollar Smile and the Specificity of a Key Currency

Detailed discussion on why the dollar strengthens during crises as the world’s key currency and the background behind it.
The dollar shows a unique movement even as the stock market plummets, which is called the ‘dollar smile’ phenomenon.
Basic exchange rates are determined by each country’s economic situation and inflation, but in the case of the United States, people seek the dollar as a safe asset in crisis situations, drawing a different trajectory from other currencies.
Thanks to these key currency characteristics, the dollar has continued to play a central role in the international financial market.

Evolution of the Dollar According to Historical Flow

1944 – Introduction of the Bretton Woods System
The dollar’s status was established by building an international financial system based on the United States’ economic power after World War II.

1971 – Nixon Shock
The United States suspended the exchange of gold and dollars, collapsing the existing gold standard.
As a result, the world re-evaluated the nature and value of the dollar.

1973~1974 – Oil Shock and Saudi-U.S. Agreement
The ‘petrodollar’ system emerged through the oil shock and cooperation with Saudi Arabia,
As oil transactions were conducted in dollars, the international demand for dollars further increased.

Afterward – Growth of the Eurodollar Market
As cases of using the dollar as a key currency also appeared outside the United States,
The dollar’s influence in the global financial market continued to expand.

Trade Balance and Global Capital Flows

Focusing on the trade structure and capital flows between the United States and other countries.
The United States records a significant trade deficit and is continuously supplied with dollars from abroad.
In this process, dollars outside the United States are reinvested in financial assets such as U.S. stocks and bonds,
Eventually, a structure is formed where net debt accumulates.
Recent situations show that the trade deficit has worsened from $0.5 trillion in 2015 to $1.2 trillion as of 2024.
This structure raises questions about the future of the U.S. economy and the dollar’s status as a key currency.

New Financial Era: Blockchain, Stablecoins, and Digital Transformation

Along with changes that have emerged since 2008,
The Trump administration’s reduction policies and the development of AI and blockchain technology are changing the financial market.
Like the saying that oil of the 21st century is data, as a core asset of the digital economy,
Stablecoins and blockchain-based financial systems are expected to emerge.
In this process, BlackRock’s Larry Fink also mentions the democratization of investment,
Predicting a new financial market structure away from the existing centralized investment method.
In the end, attention is being paid to how these changes will affect the future key currency status of the dollar.
Despite the immediate confusion, the market needs to minimize losses and prepare for the next bull market from a long-term perspective.

Summary

The dollar shows special movements even amidst stock market turmoil thanks to the ‘dollar smile’ phenomenon, where it strengthens during crises as a key currency. Starting with the Bretton Woods system in 1944, the ‘petrodollar’ and Eurodollar market were formed through historical turning points such as the Nixon Shock in 1971 and the oil shock and Saudi agreement in 1973. As the U.S. trade deficit accumulates, the flow of global capital is reorganized, and the emergence of digital transformation, AI, blockchain, and stablecoins after 2008 is causing investment democratization and a new financial hegemony debate. All of this is a key issue that determines the future of the stock market and the global economy. Key SEO keywords: stock market, key currency, trade balance, petrodollar, blockchain.

[Related Posts…]
• Dollar
• Blockchain

*YouTube Source: [이효석아카데미]

– [그냥효] 트럼프가 뒤집어버린 시장, 어떻게 봐야 할까?

● Crypto Hegemony War Ignites

Analyzing the Latest Security Trends in Hacking and Cryptocurrency in the Global Economy

North Korea’s Hacking Strategies and Cryptocurrency Theft Methods

Recently, North Korean hacking groups have increasingly chosen cryptocurrency as a means of earning foreign currency.
With estimates suggesting their holdings of major cryptocurrencies like Bitcoin and Ethereum rank third globally, it’s clear why North Korean hackers are focusing on this technology.
The hacking methods are not simply attacking the blockchain but stealing certificates or wallet keys used in the transaction process.
Most cases involve exploiting poor personal security management and exchange security vulnerabilities to steal official certificates and transfer cryptocurrencies to their accounts.
Thus, keywords such as ‘global economy,’ ‘cryptocurrency,’ ‘hacking,’ ‘blockchain,’ and ‘virtual assets’ are intertwined, creating new security threats.

Blockchain Security and Virtual Asset Wallet Management

While blockchain allows anyone to track transaction records, ‘mixing services’ are often used to fragment the flow of funds.
This service mixes funds between various exchanges and wallets, much like grinding money in a mixer, helping hackers avoid tracking.
The computer systems within exchanges are managed similarly to banks, but personal wallets or small exchanges with lax security management pose significant risks, making distributed storage important.
Additionally, storing assets in cold wallets (external storage media like USBs) is also emphasized.
In fact, large overseas companies are preparing virtual asset management services combined with smartphone security features, indicating growing interest in maintaining security.

Election System Security and Electronic Counting Procedures

Election-related security systems are managed using offline computer systems and secure USBs to prevent hacking vulnerabilities.
Ballot classifiers and counters are operated mechanically without internet connection, fundamentally blocking hacking risks.
However, some argue for the possibility of hacking voter lists or ballot boxes, which are actually subject to strict security checks and constant monitoring by internal observers.
On election day, all ballots are cross-checked before electronic input, after corrective measures and final inspections, ensuring transparent operation throughout the process.
While this system is not directly related to the ‘global economy,’ it contributes to security enhancement following technological advancements, similar to financial security and cryptocurrency security.

Starting with the recent situation where North Korean hackers are using cryptocurrency as a major means of earning foreign currency, the importance of blockchain security and personal wallet management is greatly increasing. Attack methods targeting exchange security vulnerabilities and certificate theft, as well as money laundering techniques using mixing services, are acting as destabilizing factors in the overall global economy. Meanwhile, the election system also minimizes hacking risks by using offline computer equipment and secure USBs without the internet, with various efforts to strengthen security being carried out in parallel. These examples, combined with major SEO keywords such as ‘global economy,’ ‘cryptocurrency,’ ‘hacking,’ ‘blockchain,’ and ‘virtual assets,’ are essential elements for understanding recent economic and security trends.

*YouTube Source: [와이스트릿 – 지식과 자산의 복리효과]

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