The dollar is having its worst year in decades \ stacker news ~econ

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The dollar is having its worst year in decades

454 sats \ 24 comments \ @carter 22 Sep econ

153 sats \ 17 replies \ @Undisciplined 22 Sep

That can't be right. The people saying tariffs strengthen a currency were so sure of of themselves.

Wait... wasn't the goal to weaken the dollar so that domestic production becomes cheaper than foreign production? Like an emerging economy would? I.e. be more like China and less like Norway?

121 sats \ 11 replies \ @Undisciplined 22 Sep

There was a camp making a rather convoluted argument about how tariffs would actually strengthen the dollar and they were pretty belligerent about it.

I think the idea was to level the playing field with our trade partners who have very high non-tariff trade barriers.

142 sats \ 4 replies \ @freetx 22 Sep

I think the idea was to level the playing field with our trade partners who have very high non-tariff trade barriers.

Alternatively the idea was the weaken the dollar, but claim that it was strengthening it for domestic PR purposes.

42 sats \ 3 replies \ @optimism 22 Sep

I am probably confused about who said what now. Ugh.

100 sats \ 2 replies \ @Undisciplined 22 Sep

Lots of people said lots of things

88 sats \ 1 reply \ @optimism 22 Sep

The world I (used to) live in:

Overlord has target, states target
To reach said target, overlord proposes a plan
Non-overlords:
- Have an opinion about the target itself
- Have an opinion about whether the plan is likely to reach the target

I somewhat feel that this structure is gone.

Non-overlords now say the target isn't the target but there is another target, the overlord lies about the target, non-overlord opinions are stated as facts, the plan was never meant to reach said target... and so on. What a mess.

18 sats \ 0 replies \ @Undisciplined 22 Sep

Good summary

reply on another page

42 sats \ 3 replies \ @optimism 22 Sep

Why would one claim that when it was iirc clearly stated that weakening was the goal?

100 sats \ 2 replies \ @Undisciplined 22 Sep

I don't think the messaging around the tariffs was clear at all, beyond "MOAR JOBS"

142 sats \ 1 reply \ @carter OP 22 Sep

and manufacturing jobs are dropping https://fred.stlouisfed.org/series/MANEMP#:~:text=Observations,Release%20Date:%20Oct%203,%202025

100 sats \ 0 replies \ @Undisciplined 22 Sep

I'm reserving judgement on some of these things until the policy environment settles down.

I think a lot of the economic stagnation is due to regime uncertainty.

142 sats \ 0 replies \ @0xbitcoiner 22 Sep

https://www.crescat.net/the-history-of-the-us-dollar-cycles/

The Depreciation of the Dollar Aug 6, 2025

The U.S. currency depreciation could have significant impacts for consumers, businesses, investors and ultimately for the overall economy: It would be more expensive for Americans to travel abroad. U.S. assets could be less compelling for foreign investors. Import prices could rise, putting pressure on inflation. On the positive side, however, the weaker dollar could be a boost for American exporters.

https://www.morganstanley.com/insights/articles/us-dollar-declines

100 sats \ 0 replies \ @justin_shocknet 22 Sep

It's not convoluted at all, less imports of rubber dog shit from Temu = less dollar exports (currency exchange)

Very simple supply and demand, I'd think even you could understand it, well maybe only if you read it from a globalist rag first.

China is the primary target and largely does not have yet have those tariff yet in place, deadlines kicked to October and November

November 10, 2025: The temporary 10% reciprocal tariff is scheduled to increase to 34% unless extended again. October 14, 2025: New Section 301 fees are scheduled to take effect on deliveries by Chinese ships.

The front-running from announcement to implementation would and has temporarily increased dollar exports.

Also need to look at 1:1 pairs, DXY heavily weighs EUR, and the bulk of the loss was rapid into the EUR when globalist capital was re-repatriated from US stocks into EU defense stocks.

If you're so sure of yourself, let's see those CNY and EUR calls?

142 sats \ 3 replies \ @tomlaies 22 Sep

be more like China and less like Norway?

This would also explain the communist policies by MAGA like taking stakes in companies and sponsoring new ventures

21 sats \ 2 replies \ @optimism 22 Sep

Does that surprise you though? There's a reason why Bernie Sanders has said on multiple topics that he agrees with Trump.

120 sats \ 1 reply \ @tomlaies 22 Sep

Bernie Sanders and MAGA are indeed very alike. Both have as a primary motivation being against "the elites". Both are pro gun. Both are populists that want to solve complex problems by simple slogans, none of which including shrinking the state.

A thinker/philosopher of the Bernie wing, Slavoj Žižek, said it best why so many Commies like him like Trump:

21 sats \ 0 replies \ @crenshaw 22 Sep

It is an interesting thought exercise to imagine what a Bernie presidency would have evolved into given the environment of the last decade. Unfortunately I think the vast inequality coupled with the bipolar extremism fueled by social media still brings us to a similar inflection point of outrage and violence.

That's an intriguing idea in that video, of Trump and MAGA being the heirs of the 60s counterculture and civil rights movements. Thanks for the share

60 sats \ 0 replies \ @optimism 22 Sep

By design!

7 sats \ 0 replies \ @Kael_Yurei 22 Sep

The strong vs. weak dollar debate misses the point: tariffs mean higher import costs and more uncertainty for businesses. Currencies move on capital flows and confidence, not slogans. Short-term effects aside, the real issue is low productivity and lack of competitiveness.

0 sats \ 0 replies \ @Solomonsatoshi 23 Sep

China won the trade war.

Trump is managing the decline of US extraordinary privilege.

0 sats \ 0 replies \ @spiderman 23 Sep

I cannot help but feel the Americans are the ones responsible for it, at least in part.

The last few months made me incredibly optimistic that the Bitcoin is staging a comeback in America in popular consciousness, even as many companies are preferring it as the treasury asset over bonds.

States like Florida and Utah are even recognising gold as a legal tender, to protect their respective state economies from the Federal reserve.

So yeah, it seems much of America itself is waking up from the shitcoin (dollar) fuckery. While it is far ahead of the Eurozone and Asian countries, I can only hope America's adoption level can match Switzerland.

0 sats \ 0 replies \ @Solomonsatoshi 22 Sep

Trump is managing the decline of US extraordinary privilege.

0 sats \ 0 replies \ @88b0c423eb 22 Sep

Nothing is bad that can't get worse