- cross-posted to:
- usa@midwest.social
- usa@lemmy.ml
- cross-posted to:
- usa@midwest.social
- usa@lemmy.ml
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“worst” is the wrong word to use. Exchange rate fluctuations are not necessarily good or bad, there are winners and losers in either direction. A weaker dollar makes our exports more competitive, and puts downward pressure on interest rates
exactly. trump admin (Miran, Bessent) wanted to soften the dollar. that’s how the tariffs will “pay for themselves.”
even though i hate it, this softening means they are achieving their goals - at least in that regard.
ahem What exports?
Paper and plastic.
I’m not kidding those are pretty much our two main physical exports, since we moved all of our electronics production to China or Mexico.
Scams
This could break the US financial powers. Correct?
Yes, this will eventually break our reserve currency status which would plunge the US into a fiscal nightmare situation. Our debt would finally matter and inflation would be seen like never before.
They are purposely plunging it imo because the tech bros who backed Trump have a ton of crypto and their value isn’t denominated in USD, it’s denominated in assets. They also don’t give a shit about a functioning US because they can flee and go anywhere. The USD failing will not impact their wealth, and, at least in the short term, it will give them more. This is a perfect scenario in which the world might shift to a “currency” they already have a massive stake in. It’s essentially the equivalent to bringing a company they own a huge stake in, public, except at a currency level. It’s extremely dangerous and the USD is kind of the main obstacle. Even if Bitcoin is never actually used as a currency (and it’s not which means its intrinsic value imo is even less than a single dollar) as long as the charade keeps up, they can capture a large amount of wealth that they can translate to real assets over time
If an oil-rich country breaks from the petrodollar and aligns with another currency, I think that would mark a very obvious end to US hegemony. Otherwise just a slow shift in what trade is denominated in
should I buy yuan
No, dinar
that’s ok i just ate.
it’s pretty much guaranteed to be more stable than the dollar
how about CAD?
I can’t see that Canada is going to be doing well economically in the near future. The neolibs are doing mass austerity and plan to spend 5% GDP on NATO. Also, 70% of trade here is with the US, so if the US economy starts tanking that’s necessarily going to have a huge impact on Canada as well.
I don’t see how Computer Assisted Design plays into US currency value
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I’ve seriously looked into this and there’s only a few banks in the US (mainly in LA and NYC) that will let you buy it and keep it in an account. They only really allow you to do that, however, if you’re an actual business because the minimum balance is well over $10k, with a lot of requirements being above $100k.
Like if you could afford to buy any as an American and not have it hiding in your mattress, you could afford to just leave the country.
The walls aren’t just to keep foreigners out, they’re to keep us in as well.
They’re mainly for keeping us in.
forex is full of scams, so you could just go to a physical currency exchange.
Buying foreign currency as an appreciating asset is generally a terrible idea. Holding it physically is an even worse idea, so if you’re going to own imaginary things, you might as well make it an asset that also directly contributes to the Chinese century.
Consider holding MCHI or FLCH in a tax advantaged account instead. They are highly diversified index-based funds, you “own” (not really but too long of a story) all of China. Your money goes directly to growing China and they are both mainland China-specific, no T * iwan or J * pan stocks, or any other country.
Of course there is the small risk the US bans investment into China (or starts a war) and confiscates all assets but there’s no way to directly invest in China as a foreigner and if the US goes that far, the dollar is becoming worthless anyway.
This is in comparison to meme assets whose price is mostly based on sentiment rather than anything real. US dollar’s exchange rate to yuan and euro, the currency most of the world will exchange their labor for, has remained stable.
the dollar is down 6.5% vs euro since jan 1 2025, though. not as bad as the headline but still a drop
it’s only down 2.7% against the yuan though
