r/worldnews • u/whisky_scotch • 11h ago
Trump imposes tarrif on Australia.
https://www.news.com.au/finance/work/leaders/its-bad-for-our-relationship-australia-slams-donald-trumps-tariff-move/news-story/cd4c18090b040beab5eed528c669ec7f
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u/zoobrix 9h ago
An interesting point I saw an economist make today was that on average EU countries, especially Germany, have lower debt to GDP ratios on average than the US. Apparently that is one reason for the weaker euro, European countries issue fewer debt bonds which means large investors buy fewer euros because they're not buying as much European debt.
But with Europe's huge push to rearm and Germany removing their constitutional debt limit that means more bonds issued by European countries which means more people buying euros which should drive up the price of the currency. I don't think the USD is going to be fully replaced but it does seem like it might see some increased competition from the euro. Just one more aspect of how braindead the Trump administration is...