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The dollar has lost 15% vis-a-vis the euro this year, how does your theory explain this?
by bootsmann 1y ago
The 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.
- actionfromafar 1y agoThe military is one required pillar of US dollar hegemony. It's not a sufficient pillar and the current administration is working hard at destroying other required pillars. US Treasury bonds will be less attractive, because foreign investors will lose trust in the US economy