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US is spreading dollars by consumption - import more than you export but pay in USD ..

This leaves surplus USD with exporter ..

Now offer than 4 percent to invest those dollars in buying more T bills .. US debt ..

So the exporter is happy , exporting government is happy ..

China does it in reverse way ..

Export cheap goods to nations .. but ask them to pay in Yuan .. which means they need to hold Yuan .. which means they need to buy Yuan with their own currency ..

The problem occurs when China exports to US .. cuz US won't hold Yuan ..

https://g.co/gemini/share/82280bf91c4d

That is the Crux of the problems.

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Discussion

Satosha 5mo ago

Now .. the US problem is .. this has systematically depleted manufacturing in US .. if you can buy cheap stuff with paper why would you manufacture ..

Besides countries are putting major tarrifs on US goods .. Point in case .. 150 percent on US whiskey by India :-)

And thirdly - big corps have figured out labour arbitration.. if you can pay a cent for someone to stitch your shirt why would you pay twenty dollars in US ..

Effects are dire ..

The massive exploitation of humans in third world ..even in China and a India .. almost slave like conditions

Total hopelessness in US manufacturing belt ..

And third , the most important.. with printer going crazy , gov debt is increasing alarmingly .. and hence the rise of alternatives such as #bitcoin ..

So here we are ..

Trump is doing undoable ..

Bring manufacturing back

Stop the printer

Stop slavery around the world

Bring big corp to terms

Bring hope in US manufacturing

In doing this

He is incentivizing nations to come to zero tarrif datum .. and fix the trade deficit .. making it a true global village ..

If this means little inflation on you Costco bill .. I guess that is not much to worry about ..