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jbverschoor04/03/20253 repliesview on HN

That's precisely the point right? Devalue the dollar when so you can pay off your debt with a higher value asset.

If the US$ drop 30%, the deficit magically dropped 30% when calculated in something else....


Replies

blatantly04/03/2025

Which is like burning all the houses (including your own) so you can use your houses to buy other people's houses cheap.

This only works if you have superior manufacturing infra. To some extent the FAANGs export tech. But if FAANG is a tiny thing compared to say Toyota.

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Taniwha04/04/2025

But the US$ is kept artificially high because it's used as a reserve currency for things like oil/etc - this is IMHO the main reason why the US is in this position, it wont let its currency float down leaving exporters screwed (but cheap imports for the masses). Just increasing the cost of imports but not making export prices higher (lower in fact because other countries will be raising tariffs against the US)

It's very much a case of "you can't have your cake and eat it too" fix an artificially high US$ and you can force everyone to trade in it for oil, but as a side effect you screw your exporters

knowaveragejoe04/03/2025

That's like burning your house down to cook a steak.

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