4 ms·
> The dollar is rising because people need American stuff Not really, and the USA trade deficit is going to get worse because USA stuff is more expensive due t
by landemva 4y ago
> The dollar is rising because people need American stuff
Not really, and the USA trade deficit is going to get worse because USA stuff is more expensive due to exchange rates.
There is increased demand for usd because:
1) Europeans are sick of low/negative yields at home, and
2) some big non-USA borrowers issued debt in usd and must pay it back in usd.
- oneoff786 4y ago1) Europe is set for a decade of decline and money is fleeing it. 2) this has been the case for decades and isn’t novel at all. It is noteworthy however when your usd denominated debt becomes much more expensive due to currency exchanges