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Joined 5 months ago
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Cake day: November 23rd, 2024

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  • The world does not trade in US dollars, thats a myth. If a Japanese company buys something in Australia, they convert from yen to AUD, they don’t go through the USD. Thats not what “reserve currency” means.

    There used to be a thing called the Gold Standard. The amount of gold you had in reserve was linked to the amount of money you could print. The gold standard failed because it was too restrictive.

    After WW2, the US proposed that instead of a lump of metal, money creation would be tied to the national economy. The US economy would be the “gold reserve” of the world and all the other currencies woudl be compared to it. The goal was to reduce the amount of foreigners using USD, as this was causing American notes to leak overseas and made inflation difficult to determine.

    The Euro is used over a range of economies that are only loosely tied together. Although crude monetary policy like interest rates are common, tax collection is up to individual countries, so the Euro is not a stable value as there are too many variables.






  • Probably will have some delays as the software get updated, and I wouldn’t be surprised if a bunch of Chinese goods get re-routed through Vietnam or other countries with lower import tariffs.

    Most likely they’ll just have is “assembled” (put in a box) in Mexico.

    India has 300% tariff on Chinese goods. Everything is still made in China there. US auto workers make $40 an hour, a Chinese autoworker makes $100 a week. Yes there are robots, but they have to be maintained. The difference is the costs of fitters in the US and China is even greater.

    There might be a few edge cases where it is cheaper to make in the US ; food processing for example, where the sale price is low and transport is a large proportion, or highly automated things, like making plastic bags or injected moulded stuff like those garden chairs or plastic tanks.