Topic: People keep talking how weak dollar and how bad usa economy getting (Read 1046 times)

You'll find that the people saying these sort of things are from parts of the world that America is crushing - either culture-wise or economically. There are a lot of patriotic people all around the world, many of them don't like the fact that their culture is not succeeding or they feel some perceived slight which is often the cause of what their leaders have brought upon them. America, relatively speaking when looking at population numbers, is punching much stronger than it's weight when compared to say India or China. That balance is shifting slightly, as you would expect when those countries adopt more of the freedoms America has, but many people in those countries still admire America a lot. I'd say just ignore the naysayers, as they have insignificant impact on reality.

The production and trade of weapons has always been a very profitable business for any country, and the United States is no exception in this regard. But it is hardly worth saying that the US government deliberately creates hot spots in order to then supply weapons there and make money from it. After all, the production of weapons and ammunition in the USA and Europe is largely carried out by private companies. They are the ones who are more interested in wars and, as a result, in increasing government orders for their products.

The biggest catalyst for rising arms and defense spending among Europe and the United States in recent decades has been Russia's attack on Ukraine and its two-year-long deadliest war since World War II.

The world's largest weapons manufacturers are increasing production of missile launchers, tanks and ammunition. The owners and directors are expanding such companies because they expect that there will be a consistently high demand for weapons now and in the future due to the war in Ukraine.

Rheinmetall, one of Europe's largest arms and ammunition makers, last week agreed to buy a Spanish rival to boost its production capacity. The German company's CEO said he expects new major contracts to be signed next year.

Increased production capacity of defense contractors is also being seen in the US and Asia. The Pentagon allocated more than $17 billion in weapons and services to Ukraine, but most of the weapons were taken from ready-made stocks. Therefore, the US Department of Defense allocated about $3.4 billion for new orders to replenish its own reserves and those of its allies.

Raytheon Technologies began dismantling old Stingers for parts and bringing back retired workers to speed up production. The US has not ordered these anti-aircraft missiles since 2008.

Lockheed Martin is doubling production of the Javelins missiles it produces jointly with Raytheon, and is also increasing production of Himars missile launchers and GMLRS missiles by 60%.

Russia's full-scale invasion of Ukraine in February of this year contributed to an even greater increase in defense budgets.

This has seen Rheinmetall shares rise 115% since January 1, while UK BAE Systems' Saab shares have jumped 30% and 44% respectively.

American manufacturers have been exporting weapons around the world for a long time, so the war in Ukraine did not lead to such a significant increase in shares. Year to date, Lockheed shares are up 36%, General Dynamics is up 22% and Raytheon is up 12%.

Poland is increasing its defense budget to 3% of GDP in 2023 – now it is 2.1%. Lithuania, Estonia and Latvia, according to the International Institute for Strategic Studies, are moving towards the 2.5% mark. Sweden, Finland and the UK have also pledged to increase their defense budgets.

It should also be emphasized that European countries and other countries are now actively getting rid of Russian weapons and weapons dating back to the times of the USSR, modernizing and replacing them with the latest weapons from NATO countries. There are two reasons for this process. Firstly, Ukraine, as a republic of the former USSR, has the skills to use these weapons and in war conditions there is no time to switch to another. But in order to interest states in transferring such weapons to Ukraine, the United States offered to supply these countries with the latest NATO weapons in return. Therefore, many states are happy to get rid of old Soviet weapons and receive NATO ones. Secondly, this war showed the vulnerability and poor performance of Russian weapons compared to high-precision NATO weapons. As a result, many states are abandoning Russian weapons.

https://forbes.ua/ru/svit/khochesh-miru-gotuysya-do-viyni-virobniki-zbroi-zbilshuyut-svoi-virobnichi-potuzhnosti-wsj-25112022-10046

Weakness of the US dollar could be figured out with just some sort of historical purchasing power check. While all those nations are terrible, that doesn't make USA great, it just makes it less worse. Look at the purchasing power of someone who worked as a Nurse 40 years ago, then compare that to 20 years ago, and then compare that to today.

If you are seeing diminishing returns, then you know it is not good. You can change the job and put any other job you want there, it doesn't have to be a Nurse, even the software engineers are getting fired so it is not like your economy is doing great neither. Sure maybe your "companies" could be, but the people who are living there having basically no hope of living like their parents.

The trust comes down to lawmakers in the capitol to raise the debt ceiling when needed, otherwise chaos would ensue very quickly and the United States would default on a debt is which bigger than their Gross National Income. Keeping that little detail to one side though, I believe people indeed underestimate how strong and trustworthy the United States Dollar is in the eyes of the rest of the nations in the world. My nation is quite an ironic example, actually, we are adversaries of the United States and for many years our incompetent government has been bad mouthing the USD, saying it is not backed by anything but debt, saying it is a weapon wielded by the imperialism of the world to force smaller countries into submition, among other things.
When the comical crisis came and people needed to save their savings from an insane inflation, they had to resort to the USD. Nowadays, the United States Dollar circulates together with our national currency as well, and the goverment has had to abandon their discourse on how evil those banknotes are. It is pure cheap politics, nothing pragmatic. If they really wanted people to stay away from the USD, they would have cared more about this economy instead and not force people to flee their currency.

Judging by the events taking place in the world, the fantasy of “the weakness of the dollar and the US economy” is being spread by countries where:
- The degradation of the economy has reached the point that they are forced to cut spending on science, medicine and education, sending the rest of the budget to finance the terrorist war that they unleashed in 2014.
- Oil is sold for dollars, and not even for yuan or rupees, but for... BANANAS
Russia began exchanging oil for Indian bananas
Russian authorities are launching a “banana scheme” to solve the problem of trade imbalance with India, which increased oil purchases from Russia 11 times after the start of the war, but did not launch a return flow of goods to the Russian market

Another “second world economy,” China’s, is “bursting at the seams.”
This week, all Chinese media were banned from showing information about the ongoing collapse of the Chinese stock market. Over the week, Chinese indices fell by 6%....

And the top three “who consider the dollar and the US economy to be bad and weak” is completed by Iran, which is developing so well that it has equated its currency to the value of a piece of ordinary paper

As an American I want to first state that I'm not your typical American who thinks "USA is number one!!"...I more so see myself as a citizen of the world, and I do NOT think the United States is the best country in the world, not by a long shot.  That said the US does have the best economy in the world HANDS DOWN.  What other currency is back by such a strong nation that could take over the US dollar as the worlds reserve currency?  China with their shady communist ways and the Yuan?  Russia and their dictatorship ways with the Ruble?  Nah.  There's a reason the US has so much debt from other nations..because it's the most trusted debt in the world.

That's the classic trait of a Ponzi Scheme.

We had that in Bitcoin with "bitcoin doublers" in early years. In Ponzi Schemes, they take your money and promise to pay you a big profit. They do indeed pay you a big profit but that scheme can not last forever...

Although I'm not sure if this is correct. But based on the economic news that keeps mentioning both of them, it's exactly what you say. Well, the competition between the two also seems to be getting stronger lately. China even seems to be getting smarter at collaborating with other countries to follow them. The approaches taken by China and America are actually slightly different. But I have to admit that if we are talking about the growth of economic power in the last 2 years then perhaps China is perhaps the one that is becoming more rapid at this time. But this is still not enough to surpass America. because America has built their world economy much further ahead. So China will definitely need a longer time to catch up with America in world economic dominance.

I think China and America are currently at the top, if the dollar weakens as reported, then other countries' currencies will also weaken, even worse.
So in conclusion I think China and America are like Bitcoin and Ethereum.

Jo
I just have a feeling that the USA economy is not as bad as we think of it.The US economy has proved to be strong and resilient all these years,We've so far not been able figure out which other alternative to operate with since the dollar is weak and the US government is failing in its role.
 The USA economy can not just exist all these years and a mere little challenge will defeat it,no because I don't think so.Despite all the problem,its still the dollar that's in usage and circulation,I wonder if there really will be any changes.

BRICS don't "can't" create a currency, BRICS don't want to yuanize their economies so that they don't become slaves to the Chinese economy. saving it with their economies. India has openly stated that it is against the yuan as the currency of the BRICS union, and that makes sense. The currency of the union. should be backed by something meaningful and liquid, not by the problems of the Chinese economy.

If we return to the idea of de-dollarization - whether you like the dollar or not, there is no alternative to it in the world economy at the moment! Even the most powerful EU economy with its EURO cannot replace the dollar. And if we can assume that at the initial stage of dollarization of the world economy was a cunning pan of the U.S., then now this solution is simply ... it is very convenient and profitable for everyone to trade for currency, for which you can then buy any goods from any seller !

And in fact, war is a source of economic income for...... providing assistance but not for free, providing assistance but in the end it must.... war for him produces more profit than anything else. Therefore, it is not surprising why conflicts occur in several countries, both civil and religious conflicts, which have become a productive field for continuing to maintain resistance. The East has oil wealth, create conflict there and we will step in to take over in a subtle way.

It's been a few months since your thread and it seems that the world has changed since then. The USA is doing pretty well compared to other developed countries in the West. The stock market is looking solid, inflation is down, unemployment rate is low and the fear of a recession seems avoided for now. The main issue for the USA is their own politics and if they can avoid another crisis and shutdown of the government. At least in my country the news is talking positively about the USA and the only threat would be for Trump to win again in 2024 and ruin everything. This doomsday scenario seems a bit exaggerated and who knows how the pools will turn out next year. For me USA is still the economic superpower number one in the world and their quick reaction to the high inflation made things much better. We here in Europe have much slower politicians that take a long time to talk and react. Also comparing the stock markets from USA and Europe this year shows that the Americans are doing so much better and the US Dollar is a better investment than the Euro at the moment.   

Don't you think Russia making trades using dollars means that they are getting rid of what they already have as a reserve? When you want to build something new, you need to get rid of old things. USA economy is getting weaker and that's not a lie, instead that's a fact. But only because they have hold the power for so long that people still use dollar as a global currency. Switching to something else entirely different will cause problem and many difficulties.

BRICS aren't able to establish a new currency because of it. They cannot create something new which will be accepted by everyone or accept one currency from a country because they can easily print more money. Same thing happens to US dollar but we don't talk about it much. Because it is a global currency accepted by everyone.

If it falls because of weak economy then there will be something else to rise up for sure. It's just a matter of time.

In my opinion, correct me if I'm wrong, why can the US control other countries' currencies because a country's currency is pegged to the dollar? If the dollar is destroyed, that country's currency will definitely fall because the currency between countries, as far as I know, is the dollar, which is still widely used for foreign trade. that's why America is the most influential country in the world, criticize me if I'm wrong

You know the truth: the US has no backup gold, but why are they still recognized as a strong currency? They are also the country with the biggest debt in the world. Why?

That's because their deal offer is good for the interest on the money they will lend to the countries they actually lend to. Besides that, there are other reasons. As the state of their economy is quite good, that's why it's the same if other countries lend them too much.

Every country is interested in its regional economy because it has a direct impact on that country's economic interests. As the regional economy develops, countries in the region will have opportunities to cooperate, trade, and invest with each other, thereby providing economic growth. On the contrary, when the regional economy is in recession, countries in the region will be negatively affected, leading to economic growth decline, unemployment, income deceleration,...

In the current context, the world faces many economic formulas. Of course, countries in the region still want to maintain good relations with each other to continue cooperation, trade and investment, thereby promoting regional economic growth.

I think so, even though the dollar is said to be weakening and so on, but in fact the dollar is strengthening against other currencies, even though the government is printing more banknotes every day, still the value of the dollar against other currencies is stable and tends to rise, this indicates that the dollar is still strong on.

And just imagine if weapons manufacturers who continue to make weapons and accumulate more and more will definitely suffer losses if they don't immediately release the stock of weapons they have produced if this world remains peaceful. So war scenarios and the like even become big profits for weapons manufacturers. And I don't know whether that's true or not, but I read and watched news about the weapons used in war today, which are weapons that have been produced for quite a long time and are not the newest. The point is that the current war is to sell old weapons that have been piling up. And perhaps if the war continues then newer, more deadly weapons will come into use. And of course the price will definitely be more expensive. So now it's more like a strategy to get rid of old content.

So in the end, this war is one of a small part of an economic strategy. And ultimately this is big business.

The US is always reported to be in economic difficulty but that is in economic news. But I see that in reality their economy is indirectly continuing to strengthen. The currency in my country continues to decline in value compared to the dollar. Which makes every imported item  very expensive here. But when it comes to people's welfare, I am proud of my country, Indonesia. Because here, even someone who is a beggar in a big city turns out that in reality they have a hometown and what is even more surprising is that they can build a luxurious house in their hometown. Sometimes I'm shocked to see this. 

well yeah.. Countries need to balance their economic interests with other concerns like national security, social welfare, and human rights. Governments must scale the costs and benefits of different policies in order to make decisions for the best interests of their citizens.

For example, a country might choose to impose tariffs on imports from other countries in order to protect its own industries. This could lead to higher prices for consumers and could also damage relationships with other countries, but Governments need to be prepared for the consequences. The goal of any government is to improve the lives of its citizens. This requires a careful balance of economic interests with other considerations. Governments must be willing to make tough decisions in order to achieve their long-term goals.