There are lots of talk about trashing USD or devaluing USD. Not clear what is the benefit of this? The arguments like this will make Asian countries not invest, etc. Seems like a very dangerous, ill-informed idea. But be prepared for this.
in 2015, the current president-elect floated this idea of trashing the dollar so that the debt owed to China (i.e., the treasuries China owns) are useless.
The congress was up in arms when some countries didn’t want to use USD in trade settlements between them and from their they are ready to trash the USD, in months. Welcome to the new brave world, may you live in interesting times.
I wonder what else would crash along with the US dollar if he had his way. The full faith and credit of the US government? And who would then benefit? A certain Russian comes to mind.
The US economy. Exports do ok but imports killed. Oreos are made in Mexico. Avocados mostly grown there–goodbye guac. Canadian made stuff also goes up (lots of cross-trade).
Except agricultural products, other exports don’t compete on price. OTOH, US imports lot more… Separately King dollar has ruled the world… willingly want to give up the throne to make a better america? Doesn’t’ add up.
LOL, you state that like ag products are insignificant.
Fat lot that matters to the exporters. Care to guess what is our largest export? Refined petroleum.
We are still the second largest exporting country in the world. Think they care about the cost of imports? Might some oil companies really really benefit for a lower dollar?
You betcha. And now you know what people are talking about wanting to devalue the dollar.