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A man walks past a campaign poster for the military’s proxy party USDP ahead of strictly controlled elections in Myanmar. Credit: Guy Dinmore/IPS

By Guy Dinmore
YANGON, Myanmar and BANGKOK , Jan 6 2026 (IPS)

With thousands of civilians killed in years of civil war and over 22,000 political prisoners still behind bars, no one was surprised that early results from Myanmar’s first but tightly controlled elections since the 2021 coup show the military’s proxy party speeding to victory.

“How can you hold elections and bomb civilians at the same time?” asked Khin Ohmar, a civil rights activist outside Myanmar who is monitoring what the resistance forces and a shadow government reject as “sham” polls.

The junta had already cleared the path towards its stated goal of a “genuine, disciplined multi-party democratic system” by dissolving some 40 parties that refused to register for polls, which they regard as illegitimate, with their leaders and supporters still in prison.

These include the National League for Democracy (NLD) and its leader, Aung San Suu Kyi, who won a landslide second term  in the 2020 elections – only for the results to be annulled by Senior General Min Aung Hlaing, a coup leader and self-appointed acting president. Mass street protests were crushed in early 2021 and war spread across Myanmar.

Although these elections will deliver just a façade of the legitimacy craved by some of the generals, they did succeed in projecting a power and authority that was quickly slipping away just two years ago as long-standing ethnic armed groups and newly formed People’s Defence Forces (PDFs) inflicted a series of humiliating defeats on the junta.

“The tide has turned in favour of the military,” commented a veteran Myanmar analyst in Yangon, crediting China, which reined in the ethnic groups on its shared border, fully embraced Min Aung Hlaing and, along with Russia, delivered the arms, technology and training needed to peg back the resistance.

Campaigners for the pro-military USDP canvas residents and check voters lists in Yangon ahead of the December 28 parliamentary election that excluded major anti-junta parties. Credit: Guy Dinmore/IPS

The regime’s air power and newly acquired drones have been deployed to ruthless effect, often hitting civilian targets in relatively remote areas where the resistance has grassroots support. Air strikes were stepped up as the elections approached. Major cities like Yangon were calm; people subdued.

Bombs dropped on Tabayin township in the Sagaing Region on December 5 killed 18 people, including many in a busy tea shop, AFP reported. On December 10, air strikes on a hospital in the ancient capital of Mrauk-U in Rakhine State were reported to have killed 10 patients and 23 others. The regime accused the insurgent Arakan Army and PDFs of using it as a base.

“I don’t think that anyone believes that those elections will be free and fair,” UN Secretary General Antonio Guterres stated while visiting the region ahead of the polls. He called on the junta to end its “deplorable” violence and find “a credible path” back to civilian rule.

In contrast, the Trump administration declared in November that the junta’s election plans were “free and fair” and removed Temporary Protected Status from Myanmar refugees in the US, saying their country was safe for them to return to.

“I’ll be jailed if I don’t vote,” said Min, a Yangon taxi driver, only half-joking on the eve of voting in Yangon, the commercial capital. “And what difference does it make? We are ruled by China and Xi Jinping, not Min Aung Hlaing,” he added.

With the polls spread over three stages, the first 102 townships voted on December 28. Others will follow on January 11 and January 25 to make a total of 265 of Myanmar’s 330 townships scheduled to vote for the bicameral national parliament and assemblies in the 14 regions and states.

Residents in downtown Yangon check their names on the electoral register and then cast their votes in a polling station on December 28. Credit: Guy Dinmore/IPS

No voting is to be held at all in the remaining 65 townships that the election commission deemed too unsafe.

Voting in the first round in Yangon, an urban and semi-rural sprawl of seven million people, proceeded calmly and slowly on a quiet Sunday – despite intense efforts, and sometimes threats, by the regime to boost the turnout.

In 2020 and 2015 – when Myanmar arguably held the region’s most open and fair elections and the military’s proxy Union Solidarity and Development Party (USDP), was soundly defeated – people gaily posted images of their ink-stained little fingers on social media as evidence of their vote after weeks of packed rallies and vibrant campaign rallies.

But not this time. Social media posts hurled insults, some comic and vulgar, at the regime. Those eager to support the resistance’s boycott but who were afraid of reprisals were relieved if they found their names had been omitted by mistake on electoral lists. Electronic voting machines in use for the first time made it impossible to leave a blank.

But as in past elections, a solid core of people close to the military and its web of powerful economic interests turned out to vote for the USDP.

“We are choosing our government,” declared one man exiting a polling station in central Yangon with his family, apparently USDP supporters. One proudly waved his little finger dipped in indelible ink.

How can you hold elections and bomb civilians at the same time? - Khin Ohmar, civil rights activist
Turnout for the first round was put by regime officials at 52 percent. This compares with about 70 percent in the past two elections. China’s special envoy – sent as an official observer, along with others from Russia, Belarus, Vietnam and Cambodia – praised the elections.

On January 2, the election commission unexpectedly issued partial results: the USDP, led by retired generals, had won 38 of 40 seats in the lower house where votes had been tallied to date. No one blinked.

The USDP campaign message focused on two main elements – get out and vote with all your family, and back a USDP government to restore stability and progress to Myanmar.

Its underlying message was a reminder that the last USDP administration, led by President Thein Sein introduced socio-economic and political reforms and ceasefire negotiations with ethnic groups after securing a large majority in the 2010 elections when the NLD and other opposition groups were also absent.

Aung San Suu Kyi, then under house arrest, was released just after the 2010 polls and went on to contest and win a seat in a 2012 by-election ahead of the NLD’s own sweeping victory in 2015. Aung San Suu Kyi governed in a difficult power-sharing arrangement with the military for the next five years and was thrown back into prison in the coup.

For now a large proportion of Myanmar’s population lives in areas under junta control, including all 14 of the state and regional capitals, swollen by an influx of people fleeing conflict.  The military also holds major seaports and airports and – to varying degrees – the main border crossings for China and Thailand.

But in terms of territory, over half of Myanmar is in the hands of disparate ethnic armed groups and resistance forces. Alliances are fluid and negotiable.

The shadow National Unity Government is trying to establish its own authority over liberated territory, looking to cement a consensus around the concept of a democratic and federal Myanmar free of the military’s interference – something that has eluded the country since independence from British colonial rule in 1948.

Front lines shift back and forth as the military struggles to regain control over the Bamar heartlands of central Myanmar, once considered their bastion, while stretched elsewhere after losing vast tracts of border areas since the coup. Several million people have fled the country or are internally displaced.

Once again there is some speculation that a “smooth” election and the formation of a USDP government in April will lead to a gesture signalling the military’s confidence, such as a possible ending of forced conscription and the release of some political prisoners. Project power, then collect legitimacy.

“Political prisoners are used as bait,” said Khin Ohmar, the civil rights activist in Bangkok. “The world would at least have to applaud.”

IPS UN Bureau Report

 

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In today's edition: Cyprus presidency, MFF, health workforce

La grande famille OUÉDRAOGO à Ignogo, Kaya, Koupèla et Ouagadougou ;
les grandes familles MOGMENGA et Damendo à Ouagadougou, Sangha,
Dapaong et Lomé ;
Monsieur OUÉDRAOGO Denis,
Monsieur OUÉDRAOGO Moumouni,
Monsieur OUÉDRAOGO Boulay,
Monsieur OUÉDRAOGO Henry,
Madame OUÉDRAOGO Dasmata, tous à Ouagadougou ;

Les enfants :
Son Excellence Monsieur Rimtalba Jean Emmanuel OUÉDRAOGO, Premier
ministre, Chef du Gouvernement ;
Léa BELEMKOABGA/OUÉDRAOGO, comptable à Ouagadougou ;
Franck Édouard OUÉDRAOGO, administrateur des services financiers ;
Georges OUÉDRAOGO, médecin ;
Gérard OUÉDRAOGO, officier de l'armée ;
Edgard OUEDRAOGO, commerçant ;
Mamadou Arthur OUÉDRAOGO, élève ;
Justine OUÉDRAOGO, étudiante ;
Marie Alex OUÉDRAOGO, élève ;

Les petits-enfants :
Tebkièta Ariel, Tarick, Nathan, Nour, Melvin, Arif, Mathéo, Fortuné et Jade ;

Les familles alliées : DERA, BELEMKOABGA, NIKIEMA et KABORÉ ;
Les neveux et nièces ;
très touchés par les nombreuses marques de compassion, de solidarité et de soutien multiforme qui leur ont été témoignées lors du rappel à Dieu de leur bien-aimé père, grand-père, frère, oncle et ami, Monsieur OUÉDRAOGO Tebkiètta Bernard, survenu le 18 décembre 2025 à Ouagadougou, ainsi que lors de ses obsèques le 19 décembre 2025 à Koupèla,

adressent leurs remerciements sincères à l'ensemble des autorités, personnalités, parents, amis, voisins, collègues et connaissances qui les ont accompagnés dans cette douloureuse épreuve.

Leurs remerciements vont particulièrement à l'endroit de Son Excellence Monsieur le Président du Faso, des Présidents d'institutions, des membres du Gouvernement, des autorités coutumières et religieuses, de la jeunesse de Koupèla, ainsi qu'à toutes les délégations pour leur présence, leur compassion et leur soutien multiforme.

La famille se réserve de citer des noms, de peur d'en oublier.

Puisse le Tout-Puissant et Miséricordieux vous récompenser selon Sa juste mesure.

Union de prière

Le Chef du village de Saye, commune de Bassi, province de Zondoma, Région de Yaadaga ;

Le Toog-Naba de Saye ;

La grande famille OUEDRAOGO à Saye quartier Toghin, Ouagadougou et Ouahigouya ;

Les familles alliées : OUEDRAOGO à Roba, DIALLO à Ouahigouya, YAMEOGO à Koudougou, SAVADOGO à Kalsaka, TAMBOURA à Djibo, ZONGO à Laye ;

Monsieur Hamadé Lazare OUEDRAOGO, agent de la Sonabel à la retraite ;

Les enfants, Rimanédogo Rachelle, Raoul Wendpanga, Ragnangnewendé Narcisse, Pazoussidé Louis, Wendwaoga Désiré Benjamin ;

Les petits enfants, et arrières petits enfant ;

Très touchés par votre marque de compassion, de solidarité et soutiens multiformes lors de l'hospitalisation et du décès de leur fils, frère, père, grand-père, arrière-grand-père, monsieur Kouka Dénis OUEDRAOGO, ingénieur météorologue à la retraite ;

Vous témoignent leur gratitude et vous remercient grandement.

Les remerciements vont particulièrement :

– à ses voisins et aux jeunes de Tampouy secteur 15 arrondissement 3 de Ouagadougou ;
– au CBB saint saint Pierre de Toécin ;

– à la coordination saint Jean Baptiste de Toécin ;
– au Curé de la paroisse saint Augustin de Bissighin ;
– au Chef de GUIRI-GUIRI et au Chef de LINTIBA ainsi qu'à toute la grande famille royale du Yatenga ;
– à tous les ressortissants et populations de Saye et de toute la commune de Bassi, province de Zondoma, région de Yaadaga ;

– au CCB saint Léon de SAYE ;
– au Colonel à la retraite Michel BELEM ;
– à Monsieur Michel LANKOUANDE, ingénieur météorologue à la retraite ;

– à Monsieur Lassané SAVADOGO, ancien ministre de la fonction publique ;
– à Monsieur Ousseni TAMBOURA, ancien ministre de la communication ;
– à tous ses collègues de l'ANAC et de l'ASECNA en fonction ou à la retraite ;
– à Monsieur Amed LAMIZANA, SG du Syndicat Unique de la Météorologie et de l'Aviation Civile (SUMAC) et à tous ses camarades ;

– à Monsieur Lassané COMPAORE Contrôleur Général d'Etat ;
– à Monsieur Hermann YELKOUNI 3ième vice-président de l'ALT ;
– à Monsieur Monsieur Mamadou DEMBELE, Directeur de cabinet du premier ministre ;
– à Monsieur Abdoulaye BAMOGO, PDG de BBC et Partners ;
– à Monsieur Saïdou DIMZOURE, PDG de Burkina Transit ;
– à Monsieur SOULEMAN OUSSIMAN PDG de GEFA ;
– à tous Les amis et collègues des enfants et petits-enfants ;

Ils s'en excusent auprès de tous ceux dont leurs noms n'ont pas été cités.

Que DIEU rende à chacun au centuple de ses biens faits.

Par ailleurs, ils vous informent du programme des messes suivant :
– les dimanches 4, 11, 18 et 25 Janvier 2026 à 7h00 à la chapelle Jean Baptiste de Toécin,
– les dimanches 4, 11, 18 et 25 Janvier 2026 à 9h00 à la paroisse Saint Vianney de Tampouy.

Union de prière pour le repos de son âme.

In today's edition: Mercosur, France stance, chemicals

The UN report, released last month, calls for a fundamental recalibration of global security and development strategies, prioritizing diplomacy and international cooperation to reverse the current trend of escalating military spending. Credit: UNDP

By Alice Slater
NEW YORK, Jan 6 2026 (IPS)

The United Nations issued a year end Fact Sheet: Rising global military expenditures, starkly illuminating that last year’s record high of $2.7 trillion in military expenditures, caused a cascade of devastating consequences to human well-being, the environment, possibilities for avoiding climate collapse, as well as blows to employment, ending hunger and poverty, providing health care, education, and other ills, due to a lack of adequate funding support.

The Fact Sheet does an admirable job of illustrating the shocking maldistribution of States massive military expenditures and what that money could buy in many instances, such as to end hunger and malnutrition, provide clean water and sanitation, education, environmental remediation, and so much more.

But isn’t it time for the UN to issue a Fact Sheet: Lost Opportunities to Halt Rising Military Expenditures and Heal the Earth? After all, just this summer on the 80th Anniversary of WWII, Russia and China issued a Joint Statement by the Russian Federation and the People’s Republic of China on Global Strategic Security in which they urged that in acknowledging that anniversary and the founding of the United Nations, States and their associations “should not seek to ensure their own security at the expense and to the detriment of the security of other States.” adding that ”the destinies of the peoples of all countries are interrelated.”

Even a cursory examination of the sorry history of the United States and its nuclear alliance, in seeking to secure military domination at the expense of Russia and China, shows a sad list of missed opportunities to accept Russia and China’s offers to negotiate for peace and disarmament, which would have freed up trillions of dollars over the years to address the crisis we now face for preserving all life on earth.

The most recent opportunity that should be on the list, (met with deafening silence by the corrupt western media, laboring under the heavy thumb of their corporate military sponsors, who delight in the billions lining their pockets to produce the burgeoning war machine) was China and Russia’s Joint Statement criticizing the US misbegotten Golden Dome space project and opposing any countries use of outer space for armed confrontation.”

They urged negotiations based on the Russian-Chinese draft treaty to prevent weapons and use of force in outer space, proposed at the UN Committee on Disarmament in 2008 and 2014, where consensus is required to negotiate a treaty and the United States vetoed it each time, preventing any discussion. Amazingly, they further pledged that to prevent an arms race in outer space and promote peace in space, they would “agree to promote on a global scale the international initiative/political commitment not to be the first to deploy weapons in outer space.” In other words, No First Use.

While peace in space is the most recent Lost Opportunity, the first Lost Opportunity happened in 1946 when President Truman rejected Stalin’s proposal that the US turn the bomb over to international supervision at the newly formed UN, so Russia got the bomb.

President Reagan rejected Gorbachev’s plea to give up Star Wars as a condition for both countries to eliminate all their nuclear weapons when the wall came down and Gorbachev released all of Eastern Europe from Soviet occupation, thus losing the opportunity to abolish our nuclear arsenals.

More Lost Opportunities: the expansion of the North Atlantic Treaty Organization (NATO) up to Russia’s border despite promises made when the wall came down that NATO would not expand east of a reunified Germany:

President Clinton’s refusal of Putin’s offer to go down to 1000 bombs each, and then call all nuclear states to negotiate for their elimination, provided the US stopped developing missile sites in Romania.

President Bush walked out of the 1972 Anti-Ballistic Missile Treaty and put the new base in Romania; President Trump put one in Poland.

President Obama rejected Putin’s offer to negotiate a treaty to ban cyber war! [i]

Had the US been more open over the years to cooperation, instead of losing so many opportunities to make peace, we would be so much more able to deal with the urgency of preserving a livable planet for all and avoiding the dire consequences enumerated in the new UN Fact Sheet on global military expenditures. It’s still not too late to take up the Russian-Chinese proposal for peace in space. May wiser heads prevail.

[i] https://pirm.medium.com/why-no-international-treaty-for-cybersecurity-to-ban-cyber-attacks-5a53d8b3fdd1

https://www.un.org/sites/un2.un.org/files/milex-docs/MILEX_UN_Fact_Sheet.pdf

Alice Slater serves on the Boards of World BEYOND War and the Global Network Against Weapons and Nuclear Power in Space, and is a UN NGO Representative for the Nuclear Age Peace Foundation.

IPS UN Bureau

 

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La route des Balkans reste toujours l'une des principales voies d'accès l'Union européenne, pour les exilés du Proche et du Moyen Orient, d'Afrique ou d'Asie. Alors que les frontières Schengen se ferment, Frontex se déploie dans les Balkans, qui sont toujours un « sas d'accès » à la « forteresse Europe ». Notre fil d'infos en continu.

- Le fil de l'Info / Bosnie-Herzégovine, Albanie, Kosovo, Bulgarie, Questions européennes, Populations, minorités et migrations, Migrants Balkans, Courrier des Balkans, Croatie, Turquie, Grèce, Moldavie, Macédoine du Nord, Monténégro, Slovénie, Roumanie, Serbie, Gratuit, Grèce immigration

La route des Balkans reste toujours l'une des principales voies d'accès l'Union européenne, pour les exilés du Proche et du Moyen Orient, d'Afrique ou d'Asie. Alors que les frontières Schengen se ferment, Frontex se déploie dans les Balkans, qui sont toujours un « sas d'accès » à la « forteresse Europe ». Notre fil d'infos en continu.

- Le fil de l'Info / Bosnie-Herzégovine, Albanie, Kosovo, Bulgarie, Questions européennes, Populations, minorités et migrations, Migrants Balkans, Courrier des Balkans, Croatie, Turquie, Grèce, Moldavie, Macédoine du Nord, Monténégro, Slovénie, Roumanie, Serbie, Gratuit, Grèce immigration

La route des Balkans reste toujours l'une des principales voies d'accès l'Union européenne, pour les exilés du Proche et du Moyen Orient, d'Afrique ou d'Asie. Alors que les frontières Schengen se ferment, Frontex se déploie dans les Balkans, qui sont toujours un « sas d'accès » à la « forteresse Europe ». Notre fil d'infos en continu.

- Le fil de l'Info / Bosnie-Herzégovine, Albanie, Kosovo, Bulgarie, Questions européennes, Populations, minorités et migrations, Migrants Balkans, Courrier des Balkans, Croatie, Turquie, Grèce, Moldavie, Macédoine du Nord, Monténégro, Slovénie, Roumanie, Serbie, Gratuit, Grèce immigration

La route des Balkans reste toujours l'une des principales voies d'accès l'Union européenne, pour les exilés du Proche et du Moyen Orient, d'Afrique ou d'Asie. Alors que les frontières Schengen se ferment, Frontex se déploie dans les Balkans, qui sont toujours un « sas d'accès » à la « forteresse Europe ». Notre fil d'infos en continu.

- Le fil de l'Info / Bosnie-Herzégovine, Albanie, Kosovo, Bulgarie, Questions européennes, Populations, minorités et migrations, Migrants Balkans, Courrier des Balkans, Croatie, Turquie, Grèce, Moldavie, Macédoine du Nord, Monténégro, Slovénie, Roumanie, Serbie, Gratuit, Grèce immigration

La route des Balkans reste toujours l'une des principales voies d'accès l'Union européenne, pour les exilés du Proche et du Moyen Orient, d'Afrique ou d'Asie. Alors que les frontières Schengen se ferment, Frontex se déploie dans les Balkans, qui sont toujours un « sas d'accès » à la « forteresse Europe ». Notre fil d'infos en continu.

- Le fil de l'Info / Bosnie-Herzégovine, Albanie, Kosovo, Bulgarie, Questions européennes, Populations, minorités et migrations, Migrants Balkans, Courrier des Balkans, Croatie, Turquie, Grèce, Moldavie, Macédoine du Nord, Monténégro, Slovénie, Roumanie, Serbie, Gratuit, Grèce immigration

La route des Balkans reste toujours l'une des principales voies d'accès l'Union européenne, pour les exilés du Proche et du Moyen Orient, d'Afrique ou d'Asie. Alors que les frontières Schengen se ferment, Frontex se déploie dans les Balkans, qui sont toujours un « sas d'accès » à la « forteresse Europe ». Notre fil d'infos en continu.

- Le fil de l'Info / Bosnie-Herzégovine, Albanie, Kosovo, Bulgarie, Questions européennes, Populations, minorités et migrations, Migrants Balkans, Courrier des Balkans, Croatie, Turquie, Grèce, Moldavie, Macédoine du Nord, Monténégro, Slovénie, Roumanie, Serbie, Gratuit, Grèce immigration

La route des Balkans reste toujours l'une des principales voies d'accès l'Union européenne, pour les exilés du Proche et du Moyen Orient, d'Afrique ou d'Asie. Alors que les frontières Schengen se ferment, Frontex se déploie dans les Balkans, qui sont toujours un « sas d'accès » à la « forteresse Europe ». Notre fil d'infos en continu.

- Le fil de l'Info / Bosnie-Herzégovine, Albanie, Kosovo, Bulgarie, Questions européennes, Populations, minorités et migrations, Migrants Balkans, Courrier des Balkans, Croatie, Turquie, Grèce, Moldavie, Macédoine du Nord, Monténégro, Slovénie, Roumanie, Serbie, Gratuit, Grèce immigration

La route des Balkans reste toujours l'une des principales voies d'accès l'Union européenne, pour les exilés du Proche et du Moyen Orient, d'Afrique ou d'Asie. Alors que les frontières Schengen se ferment, Frontex se déploie dans les Balkans, qui sont toujours un « sas d'accès » à la « forteresse Europe ». Notre fil d'infos en continu.

- Le fil de l'Info / Bosnie-Herzégovine, Albanie, Kosovo, Bulgarie, Questions européennes, Populations, minorités et migrations, Migrants Balkans, Courrier des Balkans, Croatie, Turquie, Grèce, Moldavie, Macédoine du Nord, Monténégro, Slovénie, Roumanie, Serbie, Gratuit, Grèce immigration

La destitution rapide du dirigeant vénézuélien et la perspective de le voir comparaître devant un tribunal américain incitent beaucoup à se demander si le droit international a été violé.

Le gouvernement grec met en place des mesures toujours plus dures pour dissuader les demandeurs d'asile, jugées inhumaines par ses opposants et illégales par l'UE et les organisations internationales. Analyse.

- Articles / Courrier des Balkans, Populations, minorités et migrations, Grèce, Grèce immigration, Migrants Balkans

In today's edition: Grids sabotage, plastics regulation, Venezuela fallout, winter bites

By Jomo Kwame Sundaram
KUALA LUMPUR, Malaysia, Jan 6 2026 (IPS)

While US President Donald Trump has blamed the BRICS and foreign investors for de-dollarisation, his rhetoric, actions and policy measures are mainly responsible for the trend’s recent acceleration.

Jomo Kwame Sundaram

Threats and reactions
Although Trump is not the sole cause of de-dollarisation, which began much earlier, well before he became president, his recent initiatives have accelerated the trend.

Despite some temporary reversals, the dollar’s post-World War II role as world reserve currency has gradually declined over the decades, especially since the 1970s. Ben Norton has argued that several Trump measures have accelerated this trend.

Trump claims his supposedly ‘reciprocal tariffs’ will reduce the US trade or current account deficit with the rest of the world. But if countries cannot export to the US, they cannot earn dollars to meet their trade and investment needs.

Many believe Trump’s tariffs and other threats are enhancing US leverage vis-à-vis others, but their reactions, including defensive countermeasures, are accelerating de-dollarisation.

Trump’s measures, such as his insistence on bilateral negotiations, have alarmed most nations, including long-time allies. As nations, including allies, rethink their economic relations with and vulnerability to the US, de-dollarisation inadvertently accelerates.

Trump vs the Fed
The US Federal Reserve Bank’s overnight lending or funds rate has been higher since 2022, responding to higher consumer price inflation following the pandemic and the Russian invasion of Ukraine.

As the Fed raised interest rates, yields on US government debt rose. But Trump now wants the Fed to cut interest rates to reduce the high debt servicing costs of both the government and private corporations.

In 2024, the US federal government paid about 3% of GDP in debt interest alone. Although such debt exceeds 120% of GDP, debt service costs are deemed manageable as long as interest rates remain low.

Trump’s pressures on the Fed to cut interest rates have inadvertently undermined investor confidence and prompted ‘flights [from dollar assets] to safety’.

Trump’s recent campaign against his earlier Fed chair appointee, Jerome Powell, has inadvertently raised investor concerns about his espoused monetary policy priorities.

Inflation fears persist
Investors now worry that Trump is pressuring the Fed to cut interest rates. They believe this will stoke inflation and cause the dollar to fall against other major currencies. As Trump is seen forcing down interest rates, he risks being blamed for persistent inflation.

If the Fed buys US Treasuries to reduce yields, for a new round of ‘quantitative easing’ (QE), dollar asset investments will realise lower, if not negative, real yields.

Although inflation hawks’ worst fears of higher inflation have not materialised so far, few believe tariffs will not raise inflation.

Expecting Trump 2.0 to impose more tariffs, many US companies stockpiled imports before April 2. As tariffs took effect and stocks declined, prices rose.

Many investors have sold their dollar assets as monetary authorities worldwide seek alternatives to the greenback. Such sell-offs lower the dollar’s value, further spurring de-dollarisation.

Trump now wants to lower US Treasury bond yields as foreign governments and investors seek alternatives to holding dollar assets.

Many are considering switching to non-dollar assets despite stagnation tendencies elsewhere in the Global North, especially in Europe and Japan. If investors stop buying dollar assets or sell them to purchase non-dollar assets, de-dollarisation will gain momentum.

Foreign demand falling
Washington is understandably worried that foreign investors will dump Treasury securities. In 2015, a third was held by foreigners, but this has since fallen to under a quarter.

The ‘Mar-A-Lago Accord’ proposal, which requires foreign governments to hold US Treasury ‘century bonds’ for 100 years despite assured losses, will compound resentment.

Lowering Treasury bond yields is both risky and difficult due to the highly financialised US economy. Past bond market turmoil has triggered stock market selloffs, lowering Treasury yields, share prices and tax revenue.

Government and corporate borrowing costs rise together. As trillions of dollars’ worth of corporate bonds mature over the next two years, high interest rates will raise corporations’ borrowing costs. Many want to refinance at lower interest rates.

These efforts to bring down interest rates are apparent to all. But lower interest rates and negative ‘actual yields’ for Treasury securities will ensure high inflation persists.

De-dollarisation accelerating?
Trump’s actions, especially threats of tariffs and sanctions, have elicited diverse reactions, often undermining dollar hegemony and accelerating de-dollarisation.

Many recent developments have undermined public confidence in the US government and the rule of law, accelerating de-dollarisation.

As investors sold US assets in mid-2025, the dollar saw its biggest fall since the 1973 oil price hike. It fell by over 10% against other major currencies, triggering temporary falls in the prices of many financial assets, including equities and bonds.

Since then, there has been increased capital market uncertainty and volatility, as in the US bond market, although a strong rally followed the ensuing stock market crash.

In many recent episodes of financial volatility, dollar liquidity was considered the safe option. But in 2025, confidence in dollar assets fell, prompting selloffs and de-dollarisation.

Thus far, Trump has been adept at managing short-term volatility, but his style implies no one knows when the music will stop.

IPS UN Bureau

 

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• Trade, Currency War Weapons Double-Edged
• What’s different about Trump’s tariffs?
• Trump’s Trade War in Perspective

Despite the country's stagnant economy, the baht gained nearly 9 percent against the dollar over the course of 2025.

The main opposition coalition boycotted the vote after a referendum allowed the removal of term limits.