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TapWaterBandit | 1 year ago

I think "follow the money" is the correct call but not like this. I think having the reserve currency be the USD means there is more demand for the currency than is needed to trade with the USA (because USD is used for all sorts of other international trade as well including things like buying oil). This makes the USD relatively too strong which makes their exports relatively too expensive.

This then has all sorts of flow on impacts throughout the manufacturing process and incentives inside the country.

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