But then Trump appointed Kevin Warsh as next Fed Chair, and things got better ;-). What a lot of global craziness around the unpredictability of one man! And I don't mean Kevin...
There are serious weaknesses with every point you make about “effects,” starting with the inflation effect. We don’t import a large share of GDP, as a typical small or developing economy does. The Fed does not have much reason to defend the dollar, unless it starts falling at 10% per quarter rather than per year. Since we owe a lot to the rest of the world, in dollars, a falling dollar makes the debt burden lighter. None of your points are irrelevant, but the explanations are one-sided due to oversimplification.
But then Trump appointed Kevin Warsh as next Fed Chair, and things got better ;-). What a lot of global craziness around the unpredictability of one man! And I don't mean Kevin...
There are serious weaknesses with every point you make about “effects,” starting with the inflation effect. We don’t import a large share of GDP, as a typical small or developing economy does. The Fed does not have much reason to defend the dollar, unless it starts falling at 10% per quarter rather than per year. Since we owe a lot to the rest of the world, in dollars, a falling dollar makes the debt burden lighter. None of your points are irrelevant, but the explanations are one-sided due to oversimplification.
Thank for your note. I would love to read your post on this topic.
https://johnevansklock.substack.com/p/the-yuan-that-didnt-bark
That’s at least a start.
https://johnevansklock.substack.com/p/the-yuan-that-didnt-bark
Thank you. I will take a look at your post about the weakness of the dollar. I hope it’s as complete as you expect of others.
Thank you! We are really passing the buck. Short term gains for a lifelong/ generational pain.
The worse part about it it is the slowest and longest problem ever. We have been kicking this can my whole life. Literally