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😹
Fun
Transcript
00:00Is the US dollar losing value a good thing? Some prominent members of the White House
00:04argue that a strong dollar makes our exports too expensive for other countries to buy,
00:09which hurts American manufacturing. But most economists agree that this is outweighed by the
00:14benefits. Like cheap imports. One of the reasons Americans pay less for so many products from
00:20clothes to smartphones is because our dollar is in demand. Also, when you're traveling abroad,
00:26you'll find the dollar will go much further than other currencies in many places.
00:30Another advantage is cheap debt. The dollar is the global reserve currency, which means
00:35all other countries need to have plenty of them on hand to do international business.
00:39This amounts to a massive low to no interest loan that the rest of the world perpetually
00:44gives to the US. We can use that cheap debt to finance stimulus packages during rough times,
00:50a prerogative sometimes known as our exorbitant privilege.
00:54But that may be coming to an end. In response to recent tariffs and political uncertainty,
00:59demand for the dollar has slipped since the beginning of the year. This is especially
01:04precarious since the Republican Congress added two to four trillion dollars to the national debt.
01:10Debt that we hope the rest of the world will still want to finance.
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