4 ms·

isn't this also kinda opposed to having the dollar as the dominant world currency? Lots of countries settle trades between each other using dollars. Making it

isn't this also kinda opposed to having the dollar as the dominant world currency? Lots of countries settle trades between each other using dollars. Making it harder to get those dollars will leave them seeking to use something else to trade.

magicreadu 2y ago
Having dollar being the worlds currency is not necessarily a good thing. Yes, you can borrow at low interests rate for a while. But guess what? Those are still debts. And eventually rates rise due to inflation. Now you have hollowed out your industrial base and you are stuck with tons of debts. Even if dollar gets weaker, better to have less debts and more industrialization
- PaulDavisThe1st 2y ago
  Inflation reduces the effective cost of debt. Inflation and the "hollowing of your industrial base" are not inevitably connected, and in the case of the USA, have almost no connection to each other at all.
- rat87 2y ago
  Not being the world's reserve currency can be argued over but having these massive economy crushing tarrifs is just stupid
- wqaatwt 2y ago
  Like Germany? Which country do you think did better over the last 20 years and which had barely any growth?
- ashoeafoot 2y ago
  The state printed paper money, he still owns a debt to the forrest donating the tree?
ashoeafoot 2y ago
Leaving the euro! Authoritarian currency is as good as their word.
- scotty79 2y ago
  Since yuan is pegged to dollar for settling day to day stuff it's roughly as good.
- bilbo0s 2y ago
  Reluctantly agree. Can't really count on more and more currencies these days. Including our own here in the US.
matheusmoreira 2y ago
BRICs were making plans to introduce their own reserve currency as an alternative to the USD. Trump once threatened 100% tariffs if they did. https://www.msn.com/en-us/money/markets/aggressive-tariffs-fuel-brics-strategic-push-toward-dollar-free-trade/ar-AA1Co2kW https://www.msn.com/en-us/money/markets/aggressive-tariffs-f... https://www.msn.com/en-us/money/markets/trump-threatens-100-tariffs-on-china-and-russia-if-brics-group-of-nations-issues-new-currency/ar-AA1v5omC https://www.msn.com/en-us/money/markets/trump-threatens-100-... https://www.bloomberg.com/news/articles/2024-12-02/south-africa-rejects-trump-s-claims-over-brics-currency-plans https://www.bloomberg.com/news/articles/2024-12-02/south-afr... These developments are going to be interesting.
- ashoeafoot 2y ago
  The C and the I are at war, R is stuck in a vietnam in Ukraine and South Africa is unstable .Leaving Brazil, which yes, brazil and India alone may hold up a stable reserve currency .
  - xg15 2y ago
    > South Africa is unstable Is it? They have some intra-government spats, but I hadn't heard that this threatened the stability of the whole country yet. > which yes, brazil and India alone may hold up a stable reserve currency. Also several other countries which joined the last year or are in the process of joining. I believe at some point, the official name was also changed to BRICS+
  - matheusmoreira 2y ago
    I seriously doubt Brazil will keep it up if Trump follows through with his threat. Honestly I'm surprised Brazil hasn't been hit hard yet. Brazilian taxes on american products can approach 100%. One for me and one for the government, as we say. A "reciprocal" 10% tariff against brazilian goods is just comical to me. I wish I was paying just 10%.
    - desdenova 2y ago
      That 10% would be over the other taxes. But Trump also managed to devalue the dollar so much, we won't even feel the difference.

magicreadu 2y ago

Having dollar being the worlds currency is not necessarily a good thing. Yes, you can borrow at low interests rate for a while. But guess what? Those are still debts. And eventually rates rise due to inflation. Now you have hollowed out your industrial base and you are stuck with tons of debts. Even if dollar gets weaker, better to have less debts and more industrialization

PaulDavisThe1st 2y ago
Inflation reduces the effective cost of debt. Inflation and the "hollowing of your industrial base" are not inevitably connected, and in the case of the USA, have almost no connection to each other at all.
rat87 2y ago
Not being the world's reserve currency can be argued over but having these massive economy crushing tarrifs is just stupid
wqaatwt 2y ago
Like Germany? Which country do you think did better over the last 20 years and which had barely any growth?
ashoeafoot 2y ago
The state printed paper money, he still owns a debt to the forrest donating the tree?

ashoeafoot 2y ago

Leaving the euro! Authoritarian currency is as good as their word.

scotty79 2y ago
Since yuan is pegged to dollar for settling day to day stuff it's roughly as good.
bilbo0s 2y ago
Reluctantly agree. Can't really count on more and more currencies these days. Including our own here in the US.

matheusmoreira 2y ago

BRICs were making plans to introduce their own reserve currency as an alternative to the USD. Trump once threatened 100% tariffs if they did. https://www.msn.com/en-us/money/markets/aggressive-tariffs-fuel-brics-strategic-push-toward-dollar-free-trade/ar-AA1Co2kW https://www.msn.com/en-us/money/markets/aggressive-tariffs-f... https://www.msn.com/en-us/money/markets/trump-threatens-100-tariffs-on-china-and-russia-if-brics-group-of-nations-issues-new-currency/ar-AA1v5omC https://www.msn.com/en-us/money/markets/trump-threatens-100-... https://www.bloomberg.com/news/articles/2024-12-02/south-africa-rejects-trump-s-claims-over-brics-currency-plans https://www.bloomberg.com/news/articles/2024-12-02/south-afr... These developments are going to be interesting.

ashoeafoot 2y ago
The C and the I are at war, R is stuck in a vietnam in Ukraine and South Africa is unstable .Leaving Brazil, which yes, brazil and India alone may hold up a stable reserve currency .
- xg15 2y ago
  > South Africa is unstable Is it? They have some intra-government spats, but I hadn't heard that this threatened the stability of the whole country yet. > which yes, brazil and India alone may hold up a stable reserve currency. Also several other countries which joined the last year or are in the process of joining. I believe at some point, the official name was also changed to BRICS+
- matheusmoreira 2y ago
  I seriously doubt Brazil will keep it up if Trump follows through with his threat. Honestly I'm surprised Brazil hasn't been hit hard yet. Brazilian taxes on american products can approach 100%. One for me and one for the government, as we say. A "reciprocal" 10% tariff against brazilian goods is just comical to me. I wish I was paying just 10%.
  - desdenova 2y ago
    That 10% would be over the other taxes. But Trump also managed to devalue the dollar so much, we won't even feel the difference.