The USD is the most used reserve currency, that will probably remain the case for a while yet, but it will probably decrease, and other currencies will be used more.
That’s not a problem for the world, only for USA. As it will make it necessary to print less money, and/or increase interest rates to stave off inflation. This will of course make USA a bit poorer than it would have been otherwise.
How dramatic the effect will be obviously depends on the speed this will happen at. I think it will be slow, so not very dramatic.
But I don’t think Trump understands the privilege it has been for USA to have the world leading reserve currency.
just the turmoil from moving from one to the other. Then lets say EU takes off, but they get psy-oped to FAFO also. Where does it end when in this current climate that there is no centralized barometer of value?
The USD is the most used reserve currency […] but it will probably decrease, and other currencies will be used more.
That’s not a problem for the world, only for USA.
Uhh yeah, that’s absolutely a problem for the world. You literally just said USD is the most used reserve currency (also, the basis for the petrodollar at the moment). Of course changing that is going to affect “the world”.
I never claimed it wouldn’t affect the world, only that it wouldn’t be a problem, it just means selling off USD to buy other currencies to trade with instead, that is obviously not a problem. Only USA will be affected negatively by their currency being sold and losing value. If this happens fast the USD will plummet. And that will probably mean vastly increased interest rates and inflation in USA.
You’re naive if you don’t think other nations will suffer when the USD fails. We’re in a global economy, and our currency is basically considered the world’s reserve currency. That means that other nations have USD. What do you think happens when the dollar fails?
Are those nations somehow indemnified against losses in some way I’m not aware of?
Nah we are just selling off USD we don’t need anyway, in exchange for other currencies that have better value to us.
The USD has already dropped 10% to the Euro since Trump became president. That’s the lowest since 2021!
The USD is the most used reserve currency, that will probably remain the case for a while yet, but it will probably decrease, and other currencies will be used more.
That’s not a problem for the world, only for USA. As it will make it necessary to print less money, and/or increase interest rates to stave off inflation. This will of course make USA a bit poorer than it would have been otherwise.
How dramatic the effect will be obviously depends on the speed this will happen at. I think it will be slow, so not very dramatic.
But I don’t think Trump understands the privilege it has been for USA to have the world leading reserve currency.
just the turmoil from moving from one to the other. Then lets say EU takes off, but they get psy-oped to FAFO also. Where does it end when in this current climate that there is no centralized barometer of value?
Uhh yeah, that’s absolutely a problem for the world. You literally just said USD is the most used reserve currency (also, the basis for the petrodollar at the moment). Of course changing that is going to affect “the world”.
I never claimed it wouldn’t affect the world, only that it wouldn’t be a problem, it just means selling off USD to buy other currencies to trade with instead, that is obviously not a problem. Only USA will be affected negatively by their currency being sold and losing value. If this happens fast the USD will plummet. And that will probably mean vastly increased interest rates and inflation in USA.
You’re naive if you don’t think other nations will suffer when the USD fails. We’re in a global economy, and our currency is basically considered the world’s reserve currency. That means that other nations have USD. What do you think happens when the dollar fails?
Are those nations somehow indemnified against losses in some way I’m not aware of?
Nah we are just selling off USD we don’t need anyway, in exchange for other currencies that have better value to us.
The USD has already dropped 10% to the Euro since Trump became president. That’s the lowest since 2021!