Trade Wars and Tariffs

#1,252
#1,252
tvolsfan said:
Maybe, but I doubt its seriously challenging the dollar anytime soon. A far more likely threat is the Euro, especially if Europe federalizes.
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EURO is in decline too. To me the Chinese Yuan is the real contender. There are more people in China than the entirety of Europe and China may soon surpass the EU in GDP.
 
#1,253
#1,253
volbound1700 said:
EURO is in decline too. To me the Chinese Yuan is the real contender. There are more people in China than the entirety of Europe and China may soon surpass the EU in GDP.
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The problem is what is FAR more important in terms of being valued as a reserve currency is stability, and the Chinese Yuan absolutely does not have that right now.
 
#1,254
#1,254
tvolsfan said:
The problem is what is FAR more important in terms of being valued as a reserve currency is stability, and the Chinese Yuan absolutely does not have that right now.
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I get that but EU isn't really popular outside of Europe anymore. Their stability/legitimacy was propped up based on history and the USA. Both are going against them currently.

Visiting Africa last year, I didn't see as much European products. I saw Chinese, Indian, USA products and influence. China is far more widespread now then you think. Latin America, Africa, Russia, Central Asia and the Middle East are all more likely to buy into the Yuan than the EURO.
 
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#1,255
#1,255
McDad said:
I grasp the concept. I have familiarity with it on the stuff I purchase. I can see the dollar moving in value relative to supply and demand. I don't see it moving to zero value based on it no longer being reserve currency. So far, I am gaining in understanding and learning new things.

But the leap to zero still escapes me.
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Worthless, zero value are exaggerations but it most certainly would feel almost worthless.
 
#1,257
#1,257
McDad said:
I assume we provide the money for the IMF and World Bank because of the dollar's position as world currency? And if true, we have to keep funding those entities because we have a vested interest in remaining the world's reserve currency. Yes?
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Yes, and it get's better. When a country is about to default on their loans, we'll either do a debt swap (not exactly sure how that works) or loan them more money so that they can keep making the interest payments on the loans they were about to default on. Look at early 1980's Mexico as an example.
 
#1,258
#1,258
McDad said:
That's assumptive.

If we're talking about the dollar as commodity, then the same things done to manipulate other commodites would be done for the dollar.

Wouldn't there would be months of advance notice or rumors the reserve currency was being changed giving them time to enhance the value?
Couldn't the governement simply decree us dollars held outside the US have no value and destroy all the foreign dollars overnight?
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IDK about those possibilities but wouldn't declaring the foreign held dollars violate the "full faith and credit" of the US? Basically rendering our credit null and void?
 
#1,260
#1,260
McDad said:
I grasp the concept. I have familiarity with it on the stuff I purchase. I can see the dollar moving in value relative to supply and demand. I don't see it moving to zero value based on it no longer being reserve currency. So far, I am gaining in understanding and learning new things.

But the leap to zero still escapes me.
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It wouldn't hit zero or very near it unless we apply Zimbabwean monetary principles. So who knows.
 
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#1,266
#1,266
titansvolsfaninga said:
I am not 100% sure what reality these people live in, but it's not the same as a majority of Americans. Despite the economic turmoil, we can all rest easy that we have the Gulf of America.
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Stop believing every twit that tweets.
"The spokesperson added that the layoffs are not related to tariffs, but were driven by demand for the types of appliances manufactured at the Amana facility."

www.kcrg.com

Whirlpool in Amana to layoff 650 workers

Whirlpool in Amana confirmed it is laying off 650 workers.
www.kcrg.com www.kcrg.com
 
#1,269
#1,269
EasternVol said:
How is the Euro in decline?
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Do you read the news? It has been devaluing vs US Dollar for some time. EU nearly crashed with the Greece incident several years back. Many of its member nations are in massive debt, manufacturing is in decline across Europe, job availability for young people is scarce. Situation isn't great there. Granted, we have many of those problems in USA as well.
 
#1,271
#1,271
The reason you don't see American cars in Europe is because we build giant gas guzzlers that would struggle to navigate a lot of old european streets AND they're paying a **** load more for gas. It doesn't take a rocket scientist to figure out. What are we doing to solve for those factors if we want to to be a force in their market?
 
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#1,272
#1,272
MercyPercy said:
The reason you don't see American cars in Europe is because we build giant gas guzzlers that would struggle to navigate a lot of old european streets AND they're paying a **** load more for gas. It doesn't take a rocket scientist to figure out. What are we doing to solve for those factors if we want to to be a force in their market?
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I think the meaning is you don't see cars from brands like Ford or Stellantis in the other regions. The cars would be unique for the region. Nissan is like that here. They make cars that are only in North America market like Sentras, Altimas, Rogues, etc. You can't find those vehicles in Japan.
 
#1,274
#1,274
MercyPercy said:
The reason you don't see American cars in Europe is because we build giant gas guzzlers that would struggle to navigate a lot of old european streets AND they're paying a **** load more for gas. It doesn't take a rocket scientist to figure out. What are we doing to solve for those factors if we want to to be a force in their market?
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American manufactures have models that are small and fuel efficient. They even make specific models for various foreign markets. In Australia you can buy a Ford Ranger with a diesel engine, you're not going to find one here.
 
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#1,275
#1,275
McDad said:
Reserve currency and its positive / negative affects to American is not something I understand.
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WWII and the dominance of the US (the 48 being untouched by war and cranked up industrially) post-war, the devastation across the globe, the Marshal plan, the reconstruction of Japan allowed the US to convert from war production to domestic production made the US dollar the de facto world reserve currency. Our continuing economic strength has kept it so. International markets continue to use the US dollar as a basis for valuation and exchange (especially in oil). Being the dominant market everyone wants to sell into means most countries have and/or want to have US dollars and dollar based equivalents. Though there have been attempts in recent decades to establish the euro and the renminbi as bases of international exchange, they’ve not been successful in displacing the US dollar. If this happens, the US would need to build established reserves of foreign currency to effectively participate in global markets. We don’t want this to happen. We would be the poorer for it. That’s as much as I can post here and now. Presently, I don’t foresee the US dollar being displaced, but I would hate for it to happen. For one thing, everyone has US dollar reserves that they don’t want devalued.
 
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