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US military dominance is what makes USD the world's reserve currency which in turn drives 30-40% of our GDP if we start to withdraw it will start to affect USD

by qaq 10y ago

US military dominance is what makes USD the world's reserve currency which in turn drives 30-40% of our GDP if we start to withdraw it will start to affect USD standing as a world's reserve currency.

trendia 10y ago
These kinds of economic predictions are nearly impossible to prove or verify. I remember approximately 1 week ago that Trump being elected would cause a global economic meltdown. Krugman himself said the stock market would "never recover" if he is elected. And already stocks are up, and have been the last few days.
- ojbyrne 10y ago
  Bond market is getting hammered though, because it believes he'll revive inflation.
  - selimthegrim 10y ago
    If he lets the Tea Party horsemen of the apocalypse loose on Yellen and the Fed, he just might http://www.nybooks.com/articles/2016/02/25/infrastructure-country-breaking-down/ http://www.nybooks.com/articles/2016/02/25/infrastructure-co...
cylinder 10y ago
This is just one of those myths that gets bandied all around the web. It's a reserve currency because it's a huge balanced economy, and the dollars are freely floated and available. And it's not exactly proven that a strong dollar benefits the US altogether.
- qaq 10y ago
  You are confusing the exchange rate with our ability to basically control word's money supply. The Middle East is basically economic preferences in exchange for security type of setup. One of the consequences of that is that's world's oil trade is denominated in USD. Putin's wet dream is changing that.
- tedunangst 10y ago
  The strong vs weak dollar is one of those things that nobody seems to understand. A weak dollar means it's harder for BMW to sell in America, but easier for Ford to sell in Europe. Why should that make people in Detroit angry?
  - cellis 10y ago
    In fact, Trump is in favor ( as all nationalists should be ) of depreciating our currency to be more competitive.

by qaq 10y ago

US military dominance is what makes USD the world's reserve currency which in turn drives 30-40% of our GDP if we start to withdraw it will start to affect USD standing as a world's reserve currency.

trendia 10y ago

These kinds of economic predictions are nearly impossible to prove or verify. I remember approximately 1 week ago that Trump being elected would cause a global economic meltdown. Krugman himself said the stock market would "never recover" if he is elected. And already stocks are up, and have been the last few days.

ojbyrne 10y ago
Bond market is getting hammered though, because it believes he'll revive inflation.
- selimthegrim 10y ago
  If he lets the Tea Party horsemen of the apocalypse loose on Yellen and the Fed, he just might http://www.nybooks.com/articles/2016/02/25/infrastructure-country-breaking-down/ http://www.nybooks.com/articles/2016/02/25/infrastructure-co...

cylinder 10y ago

This is just one of those myths that gets bandied all around the web. It's a reserve currency because it's a huge balanced economy, and the dollars are freely floated and available. And it's not exactly proven that a strong dollar benefits the US altogether.

qaq 10y ago
You are confusing the exchange rate with our ability to basically control word's money supply. The Middle East is basically economic preferences in exchange for security type of setup. One of the consequences of that is that's world's oil trade is denominated in USD. Putin's wet dream is changing that.
tedunangst 10y ago
The strong vs weak dollar is one of those things that nobody seems to understand. A weak dollar means it's harder for BMW to sell in America, but easier for Ford to sell in Europe. Why should that make people in Detroit angry?
- cellis 10y ago
  In fact, Trump is in favor ( as all nationalists should be ) of depreciating our currency to be more competitive.