You are viewing a single comment's thread from:

RE: Bounty:Why a strong USD may crash the world economy

in #usd5 years ago

Well, I am not bashing on the USD as after all, I do live in America and while we have a TON of issues it's still a great nation that I believe in. This being said, let's look at the other side of the coin.

First, with a strong USD we will see less tourism in the USD as it will be more expensive for people from other nations to come to visit. This will lead to a lack of cultural enrichment that happens when we have an open society of free-flowing ideas.

Next, we can say that with a higher USD, Exports from the US will cost more for other nations. This will stifle USD innovations but may boost innovations overseas. This also then makes USD companies that operate overseas also scale back as they will be making less, being based in the USD.

New markets that are based on the USD will have a hard time gaining traction as they will have to pay more to get started, so it could stifle new markets from starting.

Lastly, a strong Dollar inspired people to buy more things on credit, this then makes a BIG bubble that when it pops, drops the floor out on all those who used that credit causing a larger financial crash.

I see this is not just an issue with a Strong USD, but with any monetary system. It's like investing and putting all your investments in one company, sure its easy to manage.. but if that one thing goes down you are screwed. Best to have a wide and varied portfolio of assets, USD, BTC, ETH, PHP.

Well, them are my thoughts. I hope it helps!

Sort:  

All of this makes sense to me. But it seems all good for the world and bad for us.

So ur not explaining how the strong dollar crushes the world economy

Coin Marketplace

STEEM 0.22
TRX 0.26
JST 0.039
BTC 99024.83
ETH 3475.09
USDT 1.00
SBD 3.20