Tuesday, 02 January 2024 12:17 GMT

Yasam Ayavefe And The Global Economy: Gold, Stablecoins, And The New Era Of U.S. Economic Policy


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The global economy is undergoing a sharp transformation between 2023 and 2025. Post-pandemic recovery, restructured supply chains, geopolitical tensions, U.S. interest-rate strategy, a rising challenge to dollar dominance, and the expansion of digital finance are redefining both national policies and investor behavior. As Yasam Ayavefe frequently highlights, today's economic power struggle is not only about production or trade - it is deeply rooted in monetary policy and financial technology.

This article examines gold, stablecoins, and the global effects of the United States' current economic policies through a neutral and fact-based perspective.

U.S. ECONOMIC POLICY: A STRONG DOLLAR AND GLOBAL PRESSURE

Following the inflation surge, the U.S. Federal Reserve adopted aggressive interest-rate hikes starting in 2022. The result was a significantly stronger U.S. dollar against almost all currencies. A stronger dollar creates dual pressure on emerging markets:

  • External borrowing becomes more expensive
  • Capital outflows increase as investors seek safer assets

As Yasam Ayavefe points out in his economic evaluations, the dollar remains the backbone of the global financial system. Yet many countries are actively exploring strategies to reduce this dependency. BRICS nations increasingly use local currencies in trade, reviving the conversation on de-dollarization.

The U.S. policy shift also contributes to:

  • Higher volatility in equity markets
  • Portfolio reshuffling among global funds
  • A decline in overall risk appetite

Technology companies, which saw explosive growth during the pandemic, are now adapting to a more turbulent yet normalized cycle.

GOLD: THE RETURN OF THE ULTIMATE SAFE HAVEN

Gold prices reached historic highs between 2023 and 2025. Three drivers stand out:

  • Escalating geopolitical risks
  • Persistent global inflation
  • Heavy gold purchases by central banks

According to the World Gold Council, several nations - especially China, Türkiye, India, and countries in the Middle East - have significantly increased their gold reserves to diversify away from the dollar.

From Yasam Ayavefe's perspective, gold today is not only a safe asset for investors but also a strategic hedge for governments because:

  • It carries no counterparty risk
  • It cannot be sanctioned
  • It preserves value throughout history

As U.S.–China rivalry intensifies, global gold demand could rise even further.

STABLECOINS AND THE RISE OF DIGITAL FINANCE

Cryptocurrencies suffered a major confidence crisis after the market collapse of 2022. Stablecoins, however, emerged stronger. As noted by Yasam Ayavefe, the stablecoin ecosystem now plays a crucial role in modern payment infrastructure.

Why stablecoins are gaining traction:

  • They are often pegged to the U.S. dollar
  • They allow fast and low-cost international transfers
  • They operate independently from traditional banks
  • They broaden financial accessibility

Tether (USDT) and USD Coin (USDC) dominate the market. The U.S. Treasury's push for tighter regulation signals the increasing importance and systemic influence of these digital assets.

The United States' main objective is clear:

Prevent the rise of digital rivals to the dollar and keep the dollar at the core of global finance.

In response, central-bank digital currency (CBDC) projects are accelerating worldwide.

IS THE DOLLAR'S THRONE WEAKENING?

The dollar's share in global reserves has fallen from around 70% to roughly 58% over two decades. While not dramatic yet, the trajectory is notable.

According to Yasam Ayavefe, there are three main forces that could gradually weaken the dollar's dominance:

  • A stronger BRICS-centric payment network
  • Reserve diversification into gold and alternative assets
  • Digital finance reducing the power of national boundaries

    Still, the dollar remains:

    • The provider of the most trusted government bonds
    • The reference currency in over 80% of global trade
    • The sole pricing unit in energy markets

    Short term: limited change.

    Long term: a shift toward a multipolar financial order appears increasingly likely.

    GLOBAL INFLATION AND THE RISK OF RECESSION

    From 2023 through 2024, inflation remained the dominant economic challenge worldwide. The Federal Reserve and the European Central Bank focused on cooling demand without completely sacrificing economic growth.

    Two clear scenarios emerged:

  • Scenario

    Description

    Market Impact

    Soft landing

    Inflation eases while growth continues

    Markets stabilize; risk appetite returns

    Recession

    Over-tightening suppresses growth

    Job losses rise; asset prices remain volatile

    Yasam Ayavefe emphasizes that uncertainties are still widespread. Therefore, diversified portfolios have become essential for protecting wealth.

    INVESTOR POSITIONING: THE GOLD + DOLLAR + STABLECOIN TRIANGLE

    A typical modern allocation strategy increasingly includes:

    • Gold → Hedge against uncertainty
    • Dollar → Liquidity and trust
    • Stablecoins → Speed and efficient cross-border usage

    Together they form a balanced approach against shifting global risks.

    One principle often highlighted by Yasam Ayavefe:

    Relying on a single asset is no longer sustainable - smart diversification is the key to resilience.

    CONCLUSION: THE NEW REALITY OF GLOBAL FINANCE

    The world economy is becoming faster, more digital, and more unpredictable. Economic leadership now requires technological strength, reserve flexibility, and agility.

    While the dollar still anchors the financial order:

    • Gold is regaining strategic power
    • Stablecoins are transforming payments
    • Nations are quietly diversifying away from dollar dependence

    As Yasam Ayavefe notes, the future will belong to those who combine innovation with adaptive financial strategies.

    The most critical skill for investors moving forward:

    Managing uncertainty.

    Because the economic world no longer has a single dominant authority - power is diffusing. Understanding and adapting to this shifting balance is essential for both individual and institutional success.

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