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The US dollar is on track for its worst year in modern history

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124 points harambae | 2 comments | 04 Jul 25 06:47 UTC | HN request time: 1.291s | source
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forgotoldacc ◴[04 Jul 25 07:45 UTC] No.44462155[source]▶
Looking at the scale of a few years, the dollar has been insanely overvalued post-COVID.

Historically, the euro has generally been a good bit more valuable than the dollar. But in 2022, the dollar was more valuable than the euro at a point. Recently it's been bouncing around at nearly 1 euro=1 dollar.

Then there's the yen. Used to bounce around between 1 dollar = 100~110 yen. Recently reached 1 dollar = 162 yen.

The dollar losing its value is a return to the pre-covid norm. Lots of countries pumped money into the US to make money off skyrocketing stocks and high interest rates, and now they're pulling it back into their countries. It's a high that can't last forever. And if it did last forever, that would not be good for the world as a whole since it would mean every country is supporting the US at the cost of devaluing themselves.

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hnlmorg ◴[04 Jul 25 07:48 UTC] No.44462181[source]▶
I think the bigger problem is the reason why people are pulling back their money from US markets.
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1. AlecSchueler ◴[04 Jul 25 16:47 UTC] No.44466017[source]▶
It's kind of jaw dropping to see people here continually avoid the elephant in the room, same thing in discussions about Tesla sales.
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2. mindslight ◴[04 Jul 25 16:56 UTC] No.44466093[source]▶
The points avoiding the elephant in the room are basically deliberate, in support of the elephant. They think the elephant is some good thing that is going to destroy the woke, or inflation, or the immigrants, or whatever the hypocritical bogeyman is next week. But it is certainly not poised to destroy them, because they are the true patriotic Americans, don't you know. It is only everything else about this country that is wrong. And as soon as the elephant is done wrecking everything that is bad, their own true brilliance will be allowed to blossom. Or at least so they seem to think.