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De-dollarization: Is the US dollar losing its dominance? (2025)

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Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#171

Post by altcognito »

llmslave wrote: post #152
snovymgodym wrote: post #3

The international value of the dollar as a reserve and trade currency is inherently tied to the behavior of the US Government and the Federal Reserve. The 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.

did you forget about all the money the fed printed during covid? fed independence is important, but literally irrelevant in the face of rampant money printing

Why did the fed raise interest rates? To soak up some of that cash. It was too slow, but this is exactly the sound money policy that everyone expects. You loosen cash (what you mistakenly call printing money), when you need investment, and tighten cash when inflation and risk taking is out of control.

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#172

Post by chrisco255 »

throwaway290 wrote: post #102
mothballed wrote: post #84

Earlier quoted context omitted.

The 10th amendment limits the federal government to the enumerated powers. So your argument that it "isn't prohibited" isn't how this works. You have to justify it under an enumerated power (which, you might well be able to do, though this is debatable).

> The 10th amendment limits the federal government to the enumerated powers. federal reserve is not government... that's kinda the entire point) its why current US admin is being so butthurt about it, it's not under its control.

It is quasi-government, its a hybrid entity.

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#173

Post by FrustratedMonky »

llmslave wrote: post #152
snovymgodym wrote: post #3

The international value of the dollar as a reserve and trade currency is inherently tied to the behavior of the US Government and the Federal Reserve. The 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.

did you forget about all the money the fed printed during covid? fed independence is important, but literally irrelevant in the face of rampant money printing

was money printing because of a lack of independence, and manipulation by the executive? or the fed trying to keep things afloat.

this president is trying to money print during non-crisis, to ramp up economy to "20% GDP".

why downvote? Trump literally said he wants a GDP that goes to 20% or 100%. Shoot to the moon.

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#174

Post by therobots927 »

maerF0x0 wrote: post #157
therobots927 wrote: post #144

Earlier quoted context omitted.

Similarly I was downvoted for pointing out that the developed markets index returns (30%) doubled US market returns (15%) over the last year. Simultaneously the value of the dollar has dropped 10%. I simply stated that we’re seeing capital flight from the US. Ray Dalio said the same thing this morning.

And if you look at pricing as a proxy for capital flows, SMMD which is Russell 3000 minus S&P500 has had a heck of a run in 3 months. IMO People are retreating the mag7

I hadn’t noticed that , that is interesting. Makes sense to me. That’s not good for the S&P considering that ten stocks make up 40% of the index.

And since the wealth effect is really the only thing keeping the US out of a recession, if the MAG7 fail then we’re looking at serious economic problems.

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#175

Post by legitster »

It's no secret that our current US administration is envious of China. So in no small part they probably want to model the US Dollar after the Renminbi. Drop the value internationally to incentivize American exports, and manipulate the hell out of it. (Hence why they have dropped inflation as a political issue - some in the administration are essentially rooting for inflation to get much, much worse).

It should go without saying that this would be shortsighted - China made it work because they were able to take advantage of a strong international market denominated in USD. The US cannot destroy our own common market and currency and expect to take advantage of it.

Furthermore, we know what a de-dollarized world looks like - imperialism. If you need to secure oil/mineral/food for your economy but you need expensive foreign currencies to acquire it, it suddenly becomes much more economically appealing to take the resources.

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#177

Post by llmslave »

altcognito wrote: post #171
llmslave wrote: post #152

Earlier quoted context omitted.

did you forget about all the money the fed printed during covid? fed independence is important, but literally irrelevant in the face of rampant money printing

Why did the fed raise interest rates? To soak up some of that cash. It was too slow, but this is exactly the sound money policy that everyone expects. You loosen cash (what you mistakenly call printing money), when you need investment, and tighten cash when inflation and risk taking is out of control.

a sound response to some of the worst fed decision making in US history. they essentially ruined the housing market, priced out a generation of younger buyers, which is now crushing fertility rates, savings, and more

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#178

Post by ezst »

DetectDefect wrote: post #53
4fterd4rk wrote: post #6

Compromised people and useful idiots within the Trump administration are being persuaded by Russia to destroy the dollar and break up NATO.

Are you certain inflating the money supply with trillions of dollars by prior administrations did not have an effect?

So, "let's have Trump burn the house down just to make the point nobody was arguing against that fireplaces can be hazardous"?

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#179

Post by SailorJerry »

calvinmorrison wrote: post #76
munk-a wrote: post #66

Earlier quoted context omitted.

It isn't prohibited by the constitution and was created as an independent body. You are correct that it wasn't specifically outlined by the constitution but that's an empty statement - the constitution included the allowance of the creation of agencies and laws outside of itself... that's the main power and strength of the constitution. Your statement was equivalent to saying that Hacker News has no constitutional ri…

Maybe unsaid but the idea that Congress can create an organization that is not executed by the executive is the issue

I don't understand why you're being downvoted. This sounds like a reasonably debatable argument.

Re: De-dollarization: Is the US dollar losing its dominance? (2025)

#180

Post by kaycebasques »

How do people hold yuan? I was surprised at the lack of ETFs in this space. There's of course a lot of Chinese equity ETFs. There used to be a pure currency ETF but it was liquidated a couple years back. CBON seems like a good way to get exposure via bonds, but its AUM is quite low.
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