A Strong U.S. Dollar Weighs on the World

Post by defrost » Wed, May 01, 2024, 9:38 AM UTC

oytis wrote: post #49

pineaux wrote: post #26

Earlier quoted context omitted.

You should read "the global minotaur" by yanis varoufakis. It explains exactly why this is the case. This is true only for the US and it is because other countries buy dollars in bulk to keep the dollar high because: 1) not keeping the dollar high will devalue their dollar reserves. 2) they need large reserves of dollars to be able to facilitate trade in dollar denominated resources like oil. 3) they buy us treasury…

> because it ks historically a safe investment. That's the key IMO. USA has a long history of being a safe country for investment. It has uninterrupted democracy and rule of law since it was founded. It hasn't had a war on it's territory since the Civil War. It has a lot of free land and natural resources. It's just good fundamentals first - and then of course you need not to fuck up massively to ruin that, which USA…

    American Civil War (April 12, 1861 – May 26, 1865)

    Black Hawk's War (1865–72)
    Red Cloud's War (1866–68)
    Comanche campaign (1867–75)
    Modoc War (1872–73)
    Red River War (1874–75)
    Great Sioux War of 1876 (1876–77)
    .... 10 more ....
    Ghost Dance War (1890–91)

    Crazy Snake Rebellion (1909)
    New Mexico Navajo War (1913)
    Bluff War (1914–15)
    Colorado Paiute War (1915)
    Posey War (1923)

Post by resolutebat » Wed, May 01, 2024, 9:42 AM UTC

defrost wrote: post #51

oytis wrote: post #49

Earlier quoted context omitted.

> because it ks historically a safe investment. That's the key IMO. USA has a long history of being a safe country for investment. It has uninterrupted democracy and rule of law since it was founded. It hasn't had a war on it's territory since the Civil War. It has a lot of free land and natural resources. It's just good fundamentals first - and then of course you need not to fuck up massively to ruin that, which USA…

> It hasn't had a war on it's territory since the Civil War. American Civil War (April 12, 1861 – May 26, 1865) Black Hawk's War (1865–72) Red Cloud's War (1866–68) Comanche campaign (1867–75) Modoc War (1872–73) Red River War (1874–75) Great Sioux War of 1876 (1876–77) .... 10 more .... Ghost Dance War (1890–91) Crazy Snake Rebellion (1909) New Mexico Navajo War (1913) Bluff War (1914–15) Colorado Paiute War (1915)…

Post by defrost » Wed, May 01, 2024, 9:46 AM UTC

resolutebat wrote: post #53

defrost wrote: post #51

Earlier quoted context omitted.

> It hasn't had a war on it's territory since the Civil War. American Civil War (April 12, 1861 – May 26, 1865) Black Hawk's War (1865–72) Red Cloud's War (1866–68) Comanche campaign (1867–75) Modoc War (1872–73) Red River War (1874–75) Great Sioux War of 1876 (1876–77) .... 10 more .... Ghost Dance War (1890–91) Crazy Snake Rebellion (1909) New Mexico Navajo War (1913) Bluff War (1914–15) Colorado Paiute War (1915)…

Calling any of those "wars" is a stretch when casualties were mostly in the single digits.

    Red Cloud's War consisted mostly of constant small-scale Indian raids and attacks on the soldiers and civilians at the three forts in the Powder River country, wearing down those garrisons.

    The largest action of the war, the Fetterman Fight (with 81 men killed on the U.S. side), was the worst military defeat suffered by the U.S. on the Great Plains until the Battle of the Little Bighorn in the Crow Indian reservation ten years later.

Post by [deleted] » Wed, May 01, 2024, 11:01 AM UTC

Post by brutus1213 » Wed, May 01, 2024, 11:14 AM UTC

po wrote: post #42

danielheath wrote: post #35

Earlier quoted context omitted.

A spread on interest rates means you can e.g. borrow some JPY at 2% interest, spend it to purchase USD, then loan the USD to someone else at 6% interest. After you pay back the 2% interest to the original lender, you're left with 4% as profit. This usually happens when one government pushes banks for lower interest rates (to stimulate the domestic economy). It creates a large volume of trades buying USD with JPY, and…

This is exactly right, and also demonstrates why the Japan is in a bind. They don't mind the currency going low as it helps exports but going too low, too fast is a problem. Increasing interest rates to narrow the spread will affect the economy. So they are walking a very tight line here between JPY/USD spreads and domestic economy/interest rates. All global economies are to some extent but since JPY is trusted and h…