Topic: USA dollar and USA economy are Not Same - page 2. (Read 429 times)
There are differences between the US dollar and the US economy when the value of the dollar falls the country's economy goes down. If the stability of a currency depends entirely on its issuer then the condition of the dollar is very fragile dollar liquidity attracts investors they consider it a safe currency because the dollar can be exchanged quickly at any time. But it also has the opposite side everybody rushes towards the dollar when they smell any danger but most of the major blows to the world economy come from the united states.
You're right in saying that the US dollar's movements do not encapsulate the US economy's underlying fundamentals all the time.
However, holding USD is probably the worst decision you can make right now. Inflationary risks are extremely high with YoY inflation of 5% or more, and there are just overall long run risks with holding a depreciating asset like the USD.
It's not even going to be the global reserve currency in a decade's time. It's almost guaranteed that the CNY or some decentralised crypto will overtake its status.
However, holding USD is probably the worst decision you can make right now. Inflationary risks are extremely high with YoY inflation of 5% or more, and there are just overall long run risks with holding a depreciating asset like the USD.
It's not even going to be the global reserve currency in a decade's time. It's almost guaranteed that the CNY or some decentralised crypto will overtake its status.
It is not the same but they are quite related to each other. One is dependent to the other. However, US dollar is getting weak due to stimulus checks given and more money are printed this year alone. It even surpasses the printed money after world war 2 and it is quite bad for US dollar but probably be good for economy.
My teacher told me that the most important thing that can make economy better in the future is human factor. It will not only depend on resources or any minning industries anymore. I think you should not too worry about USA economy or Dollar, American is one of the best people in this world although china is the biggest competitors right now. I personally don't like to invest in fiat because of the inflation factor, and I still think that buy gold and hold it is better to safe country economy.
2022 Will be strong dollar but Not so strong Economy in USA.
Anyways Biden Don't care about as much as of People but Biden was sent to be president to save dollar.
To save dollar a lot taxes need to have.
USA dollar Will be the Next 3-4 years best asset You Can Ever have.
The World Elite Now try to save USA dollar but to do this the taxes around the world must go higher.
No More tax heavens all the money what is too much need to collect from the world.
Less money means stronger currency.
Once there is collected a lot dollars then can make intrset rates higher.
This way we all together can help save the USA dollar.
I Don't mind to cut my spendings if I can help to save the dollar as Long as I have
Usdc stable currency.
Or usdt coin.
The economy of the US depends almost entirely on the strength of the US dollar, you must understand that the US has an advantage that no other country has since the US dollar is the reserve currency of the world this means that by printing more money not only they can steal from their citizens with inflation they can do this as well to other nations, the problem is the more they print the US dollar the less the rest of the countries want to accept it and they will be more willing to accept other currencies or to ask for something that can maintain its value over the long term like gold, do you think is it a coincidence that during the last years many countries have asked the US to return their gold? Of course it is not and this is because they are preparing for the day in which the US dollar losses that status. Anyways Biden Don't care about as much as of People but Biden was sent to be president to save dollar.
To save dollar a lot taxes need to have.
USA dollar Will be the Next 3-4 years best asset You Can Ever have.
The World Elite Now try to save USA dollar but to do this the taxes around the world must go higher.
No More tax heavens all the money what is too much need to collect from the world.
Less money means stronger currency.
Once there is collected a lot dollars then can make intrset rates higher.
This way we all together can help save the USA dollar.
I Don't mind to cut my spendings if I can help to save the dollar as Long as I have
Usdc stable currency.
Or usdt coin.
I believe that the US economy is the most stable in the world, but as in any inflationary economy, as long as governments want to acquire more liquidity, the simplest thing is to print banknotes, this causes the slow death of any economy.
Although there is a total hegemony of the dollar in the world, the US is a country that has a lot of energy and resource consumption, if all the people in the US reduce consumption and try to better distribute their resources such as meals, among others, consumption begins to decrease, spending decreases and therefore the debt begins to decrease, not only for the people but also for the government.
Biden has made some changes, but those changes will begin to be noticed from the 5th year in power, it is that slow because the dollar represents stability for many, I think that to understand the US economy you must zoom in on each stratum of the people who live there, then it is something difficult when the country generates, produces, but still has debt, a debt that is not noticed when using the most important currency in the world, which is the dollar.
Although there is a total hegemony of the dollar in the world, the US is a country that has a lot of energy and resource consumption, if all the people in the US reduce consumption and try to better distribute their resources such as meals, among others, consumption begins to decrease, spending decreases and therefore the debt begins to decrease, not only for the people but also for the government.
Biden has made some changes, but those changes will begin to be noticed from the 5th year in power, it is that slow because the dollar represents stability for many, I think that to understand the US economy you must zoom in on each stratum of the people who live there, then it is something difficult when the country generates, produces, but still has debt, a debt that is not noticed when using the most important currency in the world, which is the dollar.
The United States currency, namely the US dollar, is one of the main currencies used in almost all countries in the world. Thus, what is happening to the US dollar and America as a country in general will also affect the economies of other countries, including developing countries.because the US dollar is the main currency in almost all countries, with rising US interest rates, investors begin to reallocate their assets, even bringing US dollars back home because of higher yields.The decline in the U.S. economy due to Covid 19. However, the U.S. economy has decreased less than other countries.
When billionaires pay less in taxes than middle-class people, then that's when extraordinary fraud has occurred. At that time it needed a review, why did this happen and could not be allowed to happen like this. People who feel the pain will certainly apply various forms to demand justice that is applied. Even today, not a few people are suffering from the economic devastation caused by COVID-19. Will things like this be resolved as soon as possible or left alone.
You can argue about it any way you like, but at the end of the day, it all boils down to the economy. For a time, you may still have a strong demand for the USD despite an unstable US economy. The US government may print and print money out of nothing in order to support crumbling companies. But if massive economic bail outs remain futile and bankruptcy is still taking place one company after another, then the hollow currency will start to become apparent. A currency unsupported by an economy is nothing. You cannot have a vibrant USD and a failing US economy.
2022 Will be strong dollar but Not so strong Economy in USA.
Isn't that the recipe and formula for a currency bubble.
It would be like venezuela having a strong bolivar, with its current economy. Or the zimbabwe dollar being strong during its era of hyperinflation.
The federal reserve can initiate high buying of the US dollar, to surge demand. And elevate its value. But ultimately I think most would naturally expect the currency to follow in the footsteps of the issuing nation. If the US economy is weak, the dollar will eventually follow. The extent to which the fed can mitigate market mechanics with QE and similar policies can be debated or discussed. They did manage to contain inflation longer than many expected them to. I think the strength of the dollar will be similar. It will stay stronger longer than we expect. But eventually, like inflation it will give way to market mechanics and fundamental principles.
2022 Will be strong dollar but Not so strong Economy in USA.
That's contradicting.If the dollar will be strong next year, that only indicates that the economy of the USA will be that strong. If the economy of the USA won't be so strong then that makes sense that its dollar won't be strong as well.
Highly unlikely to happen. They the media isn't telling what exactly is happening in US but there are articles sometimes that I see about the people not encourage to work anymore because they are receiving about $300/week without doing anything. The US government is just printing USD all the time to provide for the people. If this is going to continue, the dollar will collapse. And if your trading partners will decide not to use USD, there goes your American dream.
But the reality is that there were too many companies that had laid off their employees. I think, things are coming back there smoothly as the vaccination process had been successful.
The USA Dollar and the USA economy might not be the same thing but they have obvious relationship about them such that the effect on the economy would be reflected on the dollar. This can not be over emphasised. A forex trader and people who deal on stocks would understand this enough.
On dollar being one of the highest asset on can have in the future, we can only hope but sadly, its a hope that is most likely not or never to come to pass as long as America remains world power and dollar is used as the reserve currency. Look at it, 9ne of the obvious reasons why dollar is used as a world reserve currency is because of the fairly stable economy of the USA which is also reflected in the dollar.
Should there be some major alterations like we have it in cryptos like bitcoin, dollar might fail in that regard.
On dollar being one of the highest asset on can have in the future, we can only hope but sadly, its a hope that is most likely not or never to come to pass as long as America remains world power and dollar is used as the reserve currency. Look at it, 9ne of the obvious reasons why dollar is used as a world reserve currency is because of the fairly stable economy of the USA which is also reflected in the dollar.
Should there be some major alterations like we have it in cryptos like bitcoin, dollar might fail in that regard.
From my economics classes I remember that countries usually want a weaker currency. A weaker currency makes their export cheaper and more competitive compared to the international competition. If the country however wants to import a lot of things then a stronger currency would be better. The problem with USD is that many country use it and that a lot of commodities are traded in USD. So the seller probably prefer a stronger USD that they can buy more things for their money.
Americans print money to buy the whole world so the US dollar has been stronger in the past year.
https://www.bea.gov/news/2020/us-international-trade-goods-and-services-august-2020
I think in the future the US will import more than before because the trend of bringing production chains out of the US is happening and with many products. I don't believe in the dollar's real power, I believe in the US government's manipulation of the dollar. It is only a means for them to realize ends that bring economic and political benefits.
Just a while ago I saw a post highlighting how billionaires pay less taxes than the middle class people, which means that as time goes by, the people who realize how one sided biden is, is steadily increasing. Sooner or later as people suffer there will be some who would raise complaints and rallies or whatever, you name it, may arise. Which is why I believe thay this decision of Biden should be greatly reviewed because lots of lives are being affected and this is no joke. Specially at this moment when everyone are still suffering due to the economical devastations that were brought about by the covid-19 pandemic.
It means they start to be tired of USD and are more likely to switch to something else. The problem with the USA economy is surely sad but none of other business. When things are going well they expand their dominance and are proud to show it but when things go wrong they are almost crying out for help.
that's what we often hear when other countries use the dollar as a benchmark for the value of each country's money. either an emphasis on keeping values high or expecting a low score comparison. The US is overly indulgent and appoints the IMF to guarantee finances with a preponderance of freedom of borrowing. We don't think it matters when the big big crack of the Dollar has no effect on the screams of other countries.
The US was screaming but after getting help, it went back to its nature which pressured all countries to borrow more Dollars.
The US dollar doesn't seem to be at peace with the trend, just using conventional methods without realizing that the Yuan is heading in a good direction. here who would dream? while the US economy still cannot accept the existence of those who have demonstrated their existence in digital growth, then how long will it be selfish and consider safe from the threat of an economic shift that will lead to the Yuan?
From my economics classes I remember that countries usually want a weaker currency. A weaker currency makes their export cheaper and more competitive compared to the international competition. If the country however wants to import a lot of things then a stronger currency would be better. The problem with USD is that many country use it and that a lot of commodities are traded in USD. So the seller probably prefer a stronger USD that they can buy more things for their money.
Yep, that is more or less correct. When a country need a bit of a boost from outside, it tends to weaken the currency. Weakening a currency is a recognition that other countries are actually doing better than yours in terms of productivity and inflation, so it means that the residents should be getting less stuff from abroad since they are not able to produce as much as others.
Governments always try to tell people than "inflation is good because it makes the country more competitive... but that always come with increasing prices for import goods. Some economies are highly dependent on imports, such as oil and gas, thus actually making their economy less competitive due to costs of energy.
In my view, depreciating a coin is a recognition of having to lower the income level of the whole country and should be interpreted as a failure to be competitive.
2022 Will be strong dollar but Not so strong Economy in USA.
That's contradicting.If the dollar will be strong next year, that only indicates that the economy of the USA will be that strong. If the economy of the USA won't be so strong then that makes sense that its dollar won't be strong as well.
Highly unlikely to happen. They the media isn't telling what exactly is happening in US but there are articles sometimes that I see about the people not encourage to work anymore because they are receiving about $300/week without doing anything. The US government is just printing USD all the time to provide for the people. If this is going to continue, the dollar will collapse. And if your trading partners will decide not to use USD, there goes your American dream.
2022 Will be strong dollar but Not so strong Economy in USA.
That's contradicting.If the dollar will be strong next year, that only indicates that the economy of the USA will be that strong. If the economy of the USA won't be so strong then that makes sense that its dollar won't be strong as well.
Let's die USD. There is a new trend in central bank reserves
You can see the demand for USD by central banks is dropping while other currencies such as EUR, Yen, GBP don't follow the same trend.
the percentage of USD reserves held by central banks dropped to the lowest level in the past 2 decades or more.
It means they start to be tired of USD and are more likely to switch to something else. The problem with the USA economy is surely sad but none of other business. When things are going well they expand their dominance and are proud to show it but when things go wrong they are almost crying out for help.
The dollar dominance has to stop, it makes too many problems for others countries. it will certainly make the country lose a lot but as I said it is not our problem
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