Trump
The craziest thing about the tariffs, is that it destroys the trust in the dollar. The thing Trump is seemingly upset he is losing when Americans trade them for goods and services.
The dollar is worthless as a commodity, you can't eat it, live in it, neither is it an input in any industry. It's only value is its trade value.
The US was getting goods and value for an IOU with nothing backing it, other than the trust in the US government. The very trust Trump is destroying.
Trump
@karolherbst That is Trumps stated goal, or at least one of them. He is achieving one very deliberate goal, the loss of trust in the US dollar leading to lower barriers to trade.
Reducing the face value of the currency to lower barriers to trade is a know strategy for low income countries. Doing it as a high income country, Doing it by throwing trust to the wind. Is where things get, for lack of a better word, "crazy".
Librem Social is an opt-in public network. Messages are shared under Creative Commons BY-SA 4.0 license terms. Policy.
Stay safe. Please abide by our code of conduct.
(Source code)
Trump
@ekg yeah... the EUR-USD rate is already increasing significantly, and I'm sure the outcome will be that at least for everybody inside Europe, it's going to be cheaper to buy stuff from the US 🙃 good job Trump...