“US Dollar as the world’s reserve currency means the world will be awash in unwanted dollars and the dollar in free fall”
So why then is the USD up this year against the Euro, Yen, Pound, and pretty much every other major currency?
Just wait. It’s coming...
“So why then is the USD up this year against the Euro, Yen, Pound, and pretty much every other major currency?”
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The U.S. dollar has actually weakened considerably against the euro in recent months.
By the end of last September, Americans could buy one euro with just 96 cents. But the U.S. dollar has lost about 14% of its value against the euro since that recent peak; Americans needed $1.10 to buy one euro as of April 4.
The dollar has gone from $113.00 six months ago to a little less that $102.00 today. A weakening dollar means that imports become more expensive thus adding to inflation. A weak dollar diminishes its purchasing power internationally, which eventually leads to higher prices for the consumer. In addition, a weak dollar increases the cost to import oil, causing oil prices to rise. (Thank you Joe Biden for returning us to depending on OPEC for oil). This means a dollar buys less gas and thus that increased cost also causes the prices of all products to rise.
A weak dollar is inflationary and a sign of an economic down-turn. Or, inflation results in a weak dollar, also a sign of an economic down-turn. In other words, inflation is not going to ease much in the near future.