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The USD has risen against pretty much every major currency in the past several years. Its status as the world reserve currency keeps its value artificially high

The USD has risen against pretty much every major currency in the past several years. Its status as the world reserve currency keeps its value artificially high despite running the printing press. Whether this is good or bad for the US economy is debatable (and unclear), but it's not really a recipe for currency manipulation at all. I have no idea what you're talking about.

mars4rp 7y ago
is it really debatable? how could giving China printed paper for their goods be bad for US economy?
- arithma 7y ago
  I don’t understand this argument. Can’t the Chinese buy a LOT of influence, real estate, and US properties with all the dollars? Why is printing money “free”? How is this not either hyperinflation on one end or just regular currency value on the other. On one end it hurts the issuing country, on the other it’s mutually beneficial. How does printed-paper for goods fit into that spectrum. I truly can’t wrap my head around this argument: been on the back of my head since I heard I think Peter Thiel say it (iirc.)
oska 7y ago
> The USD has risen against pretty much every major currency in the past several years. And would have risen more without QE.
- AnthonyMouse 7y ago
  > And would have risen more without QE. And risen even more than that if they had started destroying currency. But the usual target for a currency is value stability with other major currencies, and "devaluation" means that its value goes down compared to most other currencies. It's completely normal (and basically required to prevent deflation) to create some new currency during normal (i.e. growth) times to provide more currency to use for the increasing number of transactions.
- seanmcdirmid 7y ago
  Well, America’s QE caused everyone else to do QE as well. The RMB because stronger in that period because China was less interested in doing QE at the time.

mars4rp 7y ago

is it really debatable? how could giving China printed paper for their goods be bad for US economy?

arithma 7y ago
I don’t understand this argument. Can’t the Chinese buy a LOT of influence, real estate, and US properties with all the dollars? Why is printing money “free”? How is this not either hyperinflation on one end or just regular currency value on the other. On one end it hurts the issuing country, on the other it’s mutually beneficial. How does printed-paper for goods fit into that spectrum. I truly can’t wrap my head around this argument: been on the back of my head since I heard I think Peter Thiel say it (iirc.)

oska 7y ago

> The USD has risen against pretty much every major currency in the past several years. And would have risen more without QE.

AnthonyMouse 7y ago
> And would have risen more without QE. And risen even more than that if they had started destroying currency. But the usual target for a currency is value stability with other major currencies, and "devaluation" means that its value goes down compared to most other currencies. It's completely normal (and basically required to prevent deflation) to create some new currency during normal (i.e. growth) times to provide more currency to use for the increasing number of transactions.
seanmcdirmid 7y ago
Well, America’s QE caused everyone else to do QE as well. The RMB because stronger in that period because China was less interested in doing QE at the time.