If the goal is to make US goods attractive to other countries and to decrease our trade deficit (not saying I agree with this goal), either the dollar has to become fundamentally weaker or the goods have to become more valuable. The latter feels more difficult than the former at this point. However, the side effects of a weaker dollar may not be worth weakening it.
If Trump announces some toady lunatic to run the Fed, watch out below, because the dollar is going to crash. I know I have moved a bunch of money into international stocks and currency and I suspect when the right leaning crowd finally catches on it will be a stampede.
The export driven economies like China or the EU rely on the dollar to weaken their own currencies for competitive trade. Without it, natural FX mechanisms would naturally begin to appreciate their currencies and make their exports uncompetitive.
The biggest problem of all social sciences is that they measure only what can be measured or is easier to measure. Sorry for the redundancy, but they don't see what is hard to see and, therefore, think it doesn't exist.
I suspect there might be a lot of "de-dollarization" going on in realms that might not be easy to measure. To be specific: it is interesting that crypto-currencies have emerged as the currency of choice for illegal activities.
The dollar has lost 13% vs the South African Rand in the past year. Thats an interesting metric for me given how South Africa has decoupled from the US in favor of China and Russia, with a strong anti-Israel stance. And also taking into consideration how the country is still struggling with crime, corruption and uncertainty.
It’s doing to be interesting to see how this plays out as the producers and makers of the world unite, and the EU turns away from the US.
Yes, of fucking course it is. The US elected a convicted con artist who is incontrovertibly violating human rights law, breaking treaties with allies, militarily threatening neighbors, and in general making a global outcast of themselves.
The US is making an absolute mockery over the honor and responsibility granted to in the post-WW2 world. It has sophisticated rivals that are predictably and effectively making use of the self-inflicted crisis. So far the ruling class of the US has been happy enough to let this go, and has been too busy making rocket ships, fake computer currencies, and large estates in south Florida to deal with real world problems.
If you are in the US, buy some gold or a house so your savings aren't destroyed - utterly predictably - by the man who declared Chapter 11 bankrupcy at least 6 times.
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[ 4380 ms ] story [ 2147 ms ] threadThe behavior of the US Government has been very unusual lately, and the independence of the Federal Reserve is actively being challenged.
So draw from that whatever conclusions you wish.
I suspect there might be a lot of "de-dollarization" going on in realms that might not be easy to measure. To be specific: it is interesting that crypto-currencies have emerged as the currency of choice for illegal activities.
https://www.macrotrends.net/1380/gold-to-oil-ratio-historica...
It’s doing to be interesting to see how this plays out as the producers and makers of the world unite, and the EU turns away from the US.
I mean, it sure looks like the goal.
And if you feel like something long (pdf): https://www.atlanticcouncil.org/wp-content/uploads/2025/05/A...
The US is making an absolute mockery over the honor and responsibility granted to in the post-WW2 world. It has sophisticated rivals that are predictably and effectively making use of the self-inflicted crisis. So far the ruling class of the US has been happy enough to let this go, and has been too busy making rocket ships, fake computer currencies, and large estates in south Florida to deal with real world problems.
If you are in the US, buy some gold or a house so your savings aren't destroyed - utterly predictably - by the man who declared Chapter 11 bankrupcy at least 6 times.
Also. Any attack to the independence of the federal reserve damages whee vale of the dollar