3 ms·
I would not be so sure about that. The reason why you are able to spend those huge amounts is because you are able to print the money while the world keeps on a
by gonvaled 8y ago
I would not be so sure about that. The reason why you are able to spend those huge amounts is because you are able to print the money while the world keeps on accepting it.
The same imbalance that strengthens your hand on trade (the huge trade deficit that the US has), is a big weakness regarding the dollar: the fact that the world has accumulated and keeps accumulating dollars could prove a big problem for the US once we decide your policies must be retaliated with actual measures.
For example, it does not make any sense for the EU to be unable to abide by a perfectly working international commitment (the agreement with Iran about non-proliferation, which has been positively audited internationally), just because we are unable to manage the flow of capitals when the US decides to block them. It would be in the interest of the EU to actively fight the prominence of the dollar.
- sheepmullet 8y ago> It would be in the interest of the EU to actively fight the prominence of the dollar. Maybe if Trump starts talking about across the board 50% tariffs it might make sense. I think the EU has far bigger structural problems to worry about.