Matthew
@matthew
USDC/T tradeoff thoughts: As currencies devalue relative to the dollar, more people around the world look to save in dollars as a way to protect their money from local inflation. This in turn devalues currencies relative to the dollar, and in turn causes the demand for dollars to rise dramatically over time. On the one hand, this is good for America because it extends soft power— billions around the world holding their net worth in dollars makes them more likely to align with American values and participate in the American-led economy. It also makes it more difficult for competing systems such as BRICs to pose a real threat. On the other hand, the trend causes US-made goods to rise in price relative to goods produced in other countries (like China), worsening American manufacturing crisis and furthering the trade imbalance that DJT seems intent on reversing. Has anyone thought about this? Am I missing something?
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Henry
@hlau
The world is turning inward. I think anyone still stuck in the globalization of 2009 is in for a very rude awakening. Economics will be defensive-first moving forward across the board
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Henry
@hlau
I guess in other words the US policy will be to wield its power as a hegemon to make the domestic market buy American and to force American products on its sphere of influence as well. Externalities can be introduced to make it “the best deal.” It’s bully ball.
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