The dollar is declining, could that be a good thing?

Discussion in 'Economics' started by RGLD, Aug 30, 2020.

  1. RGLD

    RGLD

    It'd help our exports? Plain and simple, we have all these products made in China, a weak dollar would bring some manufacturing home. Ofcourse it's never that simple right?

    The Eur/Usd went up a lot in the past few months. I'm not familiar with EU politics, but didn't they print a ton of money too for Covid? Or we just printed that much more?
     
    clacy and murray t turtle like this.
  2. %%
    Good uptrend in qqq/tqqq/spy/upro; dont know if that is greenback related/ they are all green.
    Good for exports/good for silver; dont really have an opinion on gold or europe paper……………………………………………………………………………………………………………………………..
     
  3. tiddlywinks

    tiddlywinks

    Another aspect of a weak(ish/er) USD...

    As the world's reserve currency, it allows other economies, industrialized and emerging, some breathing room. Not only in supplying necessary commodities, but also with debt repayment and debt issuance.

    As for why the Euro is rising, I will leave that (complex) subject to the teacher types that roam the halls of ET. Plus, imo, and counter-intuitive, Europe is near a dire condition regardless of what is being told.
     
    jys78 and murray t turtle like this.
  4. RGLD

    RGLD

    What have you been told?
     
  5. tiddlywinks

    tiddlywinks

    For starters, you can search for European protests this weekend. Mind you, politically around the globe, Wuhan virus has been weaponized. Feet on the ground have very different news accounts with supporting vids and pics. London, Berlin, and Belarus.

    But that's only a recent wrinkle. Who of sound mind would pay to achieve a negative interest rate?
     
  6. SunTrader

    SunTrader

    Money sometimes has to do things it doesn't want to. If it had a mind of it's own to decide.
     
  7. tiddlywinks

    tiddlywinks

    And that right there highlights one of the EU problems... reach for yield vs return of capital vs a positive rate of return. The USD weakness provides a bit of currency appreciation, which is different and separate from asset appreciation.
     
  8. If the $USD declines enough, it will bankrupt you and everybody you know.

    Explain how you think/hope that might be a good thing.
     
  9. Your notions are naive and fanciful. Suggest you educate yourself.
     
  10. RGLD

    RGLD

    I suggest you not troll. When you don't have anything of value to add.
     
    #10     Aug 30, 2020