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USD strength comes from military. Just as it was the case with all other currencies in the past. Do you see anyone challenging the US in a conflict? China won’t
by lvl155 1y ago
USD strength comes from military. Just as it was the case with all other currencies in the past. Do you see anyone challenging the US in a conflict? China won’t even invade Taiwan because they are afraid. ‘Nuff said.
- senko 1y agoWhat, if I (a European) decide not to buy American treasuries, a squad of Marines is going to bust my front door?
- cuuupid 1y agoWhat will you buy instead? The point is that the dollar is strong not purely because the American economy has been (and continues to be) the largest on the planet, but also because it is not currently possible to topple the US since its global activities are tied strongly to its military. The only realistic options that exist at the moment are going back to the gold standard (not viable for most countries) or shifting to the yen (which is tied to the dollar as Japan is the largest holder of treasuries).
- tobias3 1y agoWhen Trump was elected, I clicked the sell button on the US treasuries and the buy button on the European ones. Was pretty easy. It will be more costly for the people doing this later, of course.
- DaSHacka 1y agoActually less, if like the long-term trend holds
- 93po 1y agotreasuries are overwhelmingly impacted by federal reserve policy, not sure why you think trump would have much to do with it. if you compare US vs european treasuries since 2016 it's sort of a wash - the european ones are barely outperforming US ones, but the US ones consistently had better yields. and the big impact on US treasuries was interest rate changes, something trump has no say in
- hdgvhicv 1y agoIf you decided to trade oil in euros then a squad of aircraft carriers parks off your coast
- machiaweliczny 1y agoSee: Irak, Libia
- lvl155 1y agoNo, we just won’t rescue you next time you guys do stupid things.
- tobias3 1y agoYour president said we had "not a great day" the last time you rescued us.
- lvl155 1y ago[flagged]
- actionfromafar 1y ago"Say thank you!" You just need a golden 747.
- const_cast 1y ago> Do you think Americans will be stupid enough to spill blood for ungrateful Europoors next time? Jesus Christ what the fuck is this. Can we talk like adults? Is that something we're all capable of? Really? Europoors? We can't even come up with our own witty word play?
- zeroc8 1y agoYes they will if the are told so by their leaders. Brain washing works.
- energy123 1y agoNo, but that military might turn a blind eye when your trade routes are threatened, or might decide to offshore balance against you. Liberals are like libertarians in this regard. Housecats that don't understand what the actual source of stability and prosperity is.
- bix6 1y agoMy friends in Taiwan think they will be invaded before 2030 so we’ll see
- PartiallyTyped 1y agoThere's been a spike in news articles on the invasion the last couple of weeks. Given that the US appears to not hold on to any alliances or assurances, and ~~incontinent~~ incompetent in chief is on the helm, it seems that they've the perfect opportunity. Europe's busy with Russia, US is busy with itself, so honestly, why not?
- almost_usual 1y agoEconomy is wrecked due to real estate and internal power struggles.
- PartiallyTyped 1y agoLaunching wars to quell internal conflict is a common tactic.
- phillipcarter 1y ago> so honestly, why not? Because it might not work out so well for them? Let's not kid ourselves, this would be an invasion by sea against an opponent who's prepared for many years, has a modern defense force, and has explicitly designed a defense protocol to inflict as much damage as possible. This is not Russia stepping over fields they already encircle that are governed by a dysfunctional government. And it's not Isreal being allowed to bomb impoverished children with impunity either. And neither of those scenarios have worked out splendidly for them either.
- energy123 1y agoA state's security doctrine, in compressed form, needs to be "assume the worst". Slightly less compressed, it should be "When a nearby state keeps saying they own you, then take the credible threat seriously and pretty much pretend they're going to act on that, even if you think it would be stupid of them to do that, because history is full of examples of states doing this kind of thing. Prepare accordingly".
- bootsmann 1y agoThe dollar has lost 15% vis-a-vis the euro this year, how does your theory explain this?
- TrackerFF 1y agoThere's a sitting POTUS that wants to devalue the dollar, in order to stimulate domestic production, and exports. "But what about the stuff that the factories import, to produce anything?" one might ask. Well, Trump wants no such imports - he wants the people selling stuff to the US, to relocate to the US. Note: I'm not in favor for what Trump tries to do, but it explains why there's so little concern for the dropping dollar.
- bootsmann 1y agoIts not about concern (the dollar dropping while Trump is putting on tariffs is very concerning, it should be appreciating) its more about the fact that the dollar value seems to be influenced by things other than military strength.
- lvl155 1y agoIt lost 15% because Trump is undermining the US? What’s there to explain? Does US still have its military? Yes. Do you think currencies stay completely stagnant over even one week? It’s driven by a myriad of market forces.
- bootsmann 1y agoYes thats the point I was trying to make. The strength of the USD derives itself in large parts from the fundamental trust markets have in US institutions not from the strength of its military.
- lvl155 1y agoI know what you’re saying but it’s not some fiat blind trust. There’s a big reason why the US can print with impunity. EUR cannot, even though people may trust EU more over the near-term. It’s all tied to military.
- almost_usual 1y agoArguably USD strength comes from geography.