481–490 of 913 posts
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.
The Fed and largely US policy has absolutely no effect on the real reserve currency: https://en.wikipedia.org/wiki/Eurodollar
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I am not saying you're stupid or misinformed, I'm saying you're missing the point. Understanding what Trump wants doesn't require you to understand geopolitics, it requires you know clinical psychiatry.
Trump doesn't want this. He didn't come up with the idea. Trump was told and encouraged to want this by the little birdies at the DoD.
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Rejoining is seen as politically too risky in the short term. As you observe, the UK would not get back its privileged position, there are probably some bargains to be struck but a track to the Euro currency is almost certainly mandatory and that'd be unpopular because people really like our banknotes for some reason and the Euro deliberately just looks like play money, the illustrations deliberately don't show real…
> Rejoining is seen as politically too risky in the short term. As you observe, the UK would not get back its privileged position, Just curious, what privileges did it have? I can think of keeping it currency only.
Is the US dollar losing its dominance? The answer is both A) yes and B) it doesn't matter. Yes, US dollar is losing a bit of power and influence. This is likely to continue. Making inferences about the US global dominance based on this fact is misguided. US global dominance is as strong as ever and, if anything, getting stronger. US has very successfully managed to move the game a level above currency, to direct gove…
This is going to disappear if USD is no longer the dominant currency.
https://www.blackrock.com/corporate/insights/blackrock-inves...
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This is part of the same reason many people don't use Bitcoin- you can't actually do much with it because retailers don't accept it. But China is definitely thinking about how to fix that problem, and soon they will make it possible to pay directly in CNY in other countries. Once you can buy things with it, the CNY is attractive from a practical perspective. A lot of your stuff is already manufactured in China, once/…
Retailers don't accept crypto not because of the technology so much as the fact it is a capital gains event every time you transfer crypto, which means both the buyer and seller are now forced to keep a log of their gains/losses against the dollar everytime they buy a pack of gum. Obviously that's extremely impractical and at best you're hiring a 3rd party to streamline that for you. It's a clusterfuck at tax time (e…
Honest question: isn't it just a matter of time before US dollar loses its dominance, given that US has been losing its manufacturing business? I mean, can people really keep investing in the US market if they need less and less stuff produced by the US?
I think that's foolish and backwards thinking. The US doesn't really need more manufacturing; it had relatively low unemployment, a healthy economy, etc. The US is a service country. Apple is one of the richest companies in the world and does none of it's manufacturing in the US. Why wouldn't people invest in Apple?