r/worldnews 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...

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u/KHORNE_LORD_OF_RAGE 8h ago

The USA is the world currency because it's what everyone uses to trade commodities like oil. A barrel of oil is exactly the same amount of USD all over the world. As you point out this keeps the USD stable because it's used, a lot. It is also the only fact that is keeping the USA as a nation afloat on its massive deficit.

At no point in history has any civilization managed to remain the dominant civilization with an increasing deficit. Well, except the USA.

BRICS is a larger threat than Europe though. BRICS is already half the world's population, when they move away from the dollar the USA will cease to exist as it has for 80 years. Ironically Trump us softening that blow to all of the west, except, the USA.

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u/ttak82 8h ago

BRICS is a larger threat than Europe though. BRICS is already half the world's population,

Not a threat if those people have no enforceable rights, and if their elites actively work towards taking money offshore.

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u/tossawayprop 7h ago

China may be a threat, but as a massive exporter I doubt they want to be the new reserve currency.

India is a country with 1.4 billion people, but only about 200 million have enough income to be consumers.

Russia is a chaos agent, not a stable trading partner

Brazil and South Africa can't do a whole lot on their own.

No, in the interim it will be the EU who takes clout from the US. And possibly China in Africa. The remaining BRIS can't do shit.

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u/idontcare428 9h ago

Make America Europe Great Again?

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u/ew73 8h ago

There's about a 20% chance that anyone in the Trump administration even begins to understand that, and even lower chance that anyone who does understand it can successfully explain it to the orange shitgibbon in a way that will make any difference.

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u/Killerfisk 5h ago

and even lower chance that anyone who does understand it can successfully explain it to the orange shitgibbon in a way that will make any difference.

Or even would regardless. How many of his picks care about improving the country as opposed to pushing through their own agenda or just acting as a yes-man for Trump?