Anonymous wrote:Can someone provide insights about what's happening with the US Dollar. I had nothing to do so I started looking at the US dollar performance during time of wars etc.
Usually when oil price is on an upward trajectory so is the US dollar. When they are geopolitical tensions, the dollar becomes a refuge. This time around that's not happening..Why?
Don't we need a string dollar to be able to have low mortgage rates, low interest loans for a lot of things compared to the rest of the world? Or is the dollar irrelevant? We are a consumer based economy that embraces debt so I just wonder what happens when our currency is not so attractive anymore. Will the Fed have to print money then?
Yes, and basically the international chaos caused by Trump is causing the dollar to lose reserve currency status. This could have some very serious repercussions for the US.
https://www.wired.com/story/the-dollar-is-facing-an-end-to-its-dominance/
The US has lost a lot of economic and soft international power in the past year and if things continue as is, it will get worse.