The dilemma of asset allocation under the pressure of US dollar depreciation

A seasoned investor recently raised a thought-provoking point: governments around the world fundamentally want their currencies to devalue. Looking at some of the current economic policy directions in the United States, this tendency can indeed be felt.

History has given us a clear answer. In the past, governments had to disguise currency devaluation by reducing the content of precious metals to dilute the value of money. And now? They directly start the printing press and release liquidity on a large scale. This is not a personal decision of a politician, but an impulse that naturally arises in the operation of the government system. With such operations over the long term, the purchasing power of currency will inevitably continue to decline.

Looking at the financial situation in the United States makes it easier to understand this pressure. The national debt has surpassed $38 trillion, and the fiscal deficit remains high year after year, with interest payments approaching the scale of defense spending annually. In this predicament, the government continues to print money to cope—this is equivalent to accelerating the process of currency devaluation.

Interestingly, some established investors are already taking practical steps to hedge against this risk. For example, in Japan's low interest rate environment, they borrow yen for loans and then invest the funds in high-quality assets such as major trading companies in Japan. This approach not only avoids the risk of devaluation of a single currency but also achieves relatively stable investment returns.

This reflects a serious reality: the hard-earned assets need active protection. In the face of potential currency risks, merely holding cash is no longer sufficient; one must actively consider the diversification of assets - this applies to ordinary investors as well. In the current volatile cryptocurrency market, it is even more necessary to rationally think about the logic of asset allocation.