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