Among the threats tariffs pose to the U.S. economy, none may be as strange as the sell-off in the dollar.
  • @gravitas_deficiency@sh.itjust.worksEnglish
    35•20 hours ago

    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.

  • @Raiderkev@lemmy.worldEnglish
    56•23 hours ago

    What’s so strange about it? Trump is trying to fire the chairman of the fed, a non political organization to install a sycophant that will lower rates and send prices through the roof so rich people’s line can go up. He is intentionally trying to lower the value of the dollar. If he succeeds, we’re fucked.

    • @Kidplayer_666@lemm.eeEnglish
      23•22 hours ago

      It’s strange mostly because it’s the first time in post war history that stocks AND dollar does down

      • @AA5B@lemmy.worldEnglish
        4•2 hours ago

        Have they seen our current politico-economic stance? That’s the first time too, but seems like the expected response.

        I haven’t ever tried lighting my house on fire but I can safely predict that if I did, things I care about will get ruined. It hasn’t happened before but that’s because I’ve never lighted my house on fire before. Otherwise, obvious cause and effect

  • @selkiesidhe@lemm.eeEnglish
    9•18 hours ago

    Almost like investors don’t trust a fucking criminal who is manipulating the markets… How strange!

  • @Not_mikey@lemmy.dbzer0.comEnglish
    6•17 hours ago

    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.

    • DenixenEnglish
      2•57 minutes ago

      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.