You’re naive if you don’t think other nations will suffer when the USD fails. We’re in a global economy, and our currency is basically considered the world’s reserve currency. That means that other nations have USD. What do you think happens when the dollar fails?
Are those nations somehow indemnified against losses in some way I’m not aware of?
Nah we are just selling off USD we don’t need anyway, in exchange for other currencies that have better value to us.
The USD has already dropped 10% to the Euro since Trump became president. That’s the lowest since 2021!
We are in a worldwide, interconnected economy. You cannot crash “the world’s reserve currency”/Petrodollar without creating some massive ripples (or more like tidal waves) throughout the world economy.
Maybe not, but when the dollar declines, everything else is up relatively. so the losses on dollars are recouped in increase in native and other currencies for those countries.
Unstable markets are generally unhealthy for everybody, but obviously a declining US economy is worst for USA.
Trump actually want the dollar to decline, he thinks USA can export more and import less, and he is getting what he asks for. But it will mostly be import less, and not so much export more.
The US trade war (tariffs) are way more serious than the declining dollar.
Everybody else is already increasing activities around USA.
If the dollar remains stable it doesn’t make a hoot of a difference to change our reserve currency to something else for anybody else but USA.
For Europe to change it to Euro would be HUGELY beneficial. For everybody else it doesn’t matter.
If Saudi Arabia sell oil for Euro instead of USD to Europe that’s a HUGE advantage for Europe.
If they sell to other countries for Euro instead of USD, it makes no difference for either party.
But USA will in both cases have to buy their own dollars back, and that will make the dollar fall.
Do we (the rest of the “free” world) want this? No!
Did we ask for this? No!
Did we cause this? No!
You’re naive if you don’t think other nations will suffer when the USD fails. We’re in a global economy, and our currency is basically considered the world’s reserve currency. That means that other nations have USD. What do you think happens when the dollar fails?
Are those nations somehow indemnified against losses in some way I’m not aware of?
Nah we are just selling off USD we don’t need anyway, in exchange for other currencies that have better value to us.
The USD has already dropped 10% to the Euro since Trump became president. That’s the lowest since 2021!
We are in a worldwide, interconnected economy. You cannot crash “the world’s reserve currency”/Petrodollar without creating some massive ripples (or more like tidal waves) throughout the world economy.
Maybe not, but when the dollar declines, everything else is up relatively. so the losses on dollars are recouped in increase in native and other currencies for those countries.
Unstable markets are generally unhealthy for everybody, but obviously a declining US economy is worst for USA.
Trump actually want the dollar to decline, he thinks USA can export more and import less, and he is getting what he asks for. But it will mostly be import less, and not so much export more.
The US trade war (tariffs) are way more serious than the declining dollar.
Everybody else is already increasing activities around USA.
If the dollar remains stable it doesn’t make a hoot of a difference to change our reserve currency to something else for anybody else but USA.
For Europe to change it to Euro would be HUGELY beneficial. For everybody else it doesn’t matter.
If Saudi Arabia sell oil for Euro instead of USD to Europe that’s a HUGE advantage for Europe.
If they sell to other countries for Euro instead of USD, it makes no difference for either party.
But USA will in both cases have to buy their own dollars back, and that will make the dollar fall.
Do we (the rest of the “free” world) want this? No!
Did we ask for this? No!
Did we cause this? No!
Did USA cause this? Yes.