Strange sell-off in the dollar raises the specter of investors losing trust in the US under Trump
Strange sell-off in the dollar raises the specter of investors losing trust in the US under Trump
Among the threats tariffs pose to the U.S. economy, none may be as strange as the sell-off in the dollar.
Truly unforseeable instability
you dropped this
/s
Reposting:
It’s not fucking “strange”.
It’s Canada, Japan, the EU, and our other former allies retaliating against the US trying to use absolutely asinine and ham-fisted tariffs as a cash grab/shakedown by engaging in strategic retaliatory fiscal policy.
This is actual 4D geoeconomic chess. Because if orangeboi doesn’t listen and they keep going, the USD standard goes away.
Of course it's not strange. It's not even necessarily retaliation! It's just smart business. The US is not reliable or stable, and the dollar is not reliable or stable. Neither are good investments right now.
I mean it IS retaliation though. It’s retaliation for thinking absurd tariffs are a great idea to apply to one’s allies.
And please do note that some particular countries who were until very recently considered geopolitical adversaries by our government (Russia; Belarus) are NOT targeted by any of the tariffs.
This is what happens when you switch teams, and all of your allies are not a fan of you switching teams, and they don’t want to be tied to your currency standard anymore.
What trust? I'm from the EU and I have no trust in the US atm.
For anyone asking why it's strange, from the article
Traditionally, the dollar would strengthen as tariffs sink demand for foreign products.
If you're looking at the dollar with supply and demand, if international trade to the u.s. decreases with tarriffs, then the amount of dollars leaving the u.s. also decreases and thus the supply of dollars on the international market. Assuming demand remains constant then the strength of the dollar should go up.
For this decrease in strength you have to look to demand which has to decrease enough to counteract the tarriffs plus more. This decrease in demand is coming from both decrease in demand for assets priced in dollars (u.s. companies stocks, treasury bonds, real estate etc.) And retaliatory tarriffs which lower demand for u.s. goods.
Exactly, when people and organizations are selling their American stocks and companies and customers around the world stop buying American, there is less need for dollars. When the demand decreases, the price decrease.
"Strange" lol, lmao even
Almost like investors don't trust a fucking criminal who is manipulating the markets... How strange!
curious!