[theold]

Japanese authorities have indeed spent billions of dollars to prop up the yen, which has lost a third of its value since 2021 and fell to a 34-year low of more than 160 per dollar in April -- this is the outcome of the yawning interest-rate differential between the two countries: when the Fed sharply raised interest rates in early 2022 to combat inflation, the Bank of Japan maintained its negative interest-rate policy to address domestic deflation.

Most notably, the Japanese authorities spent a record ¥9.8 trillion (2.1 trillion baht) in April and May to reverse the yen's downtrend, surpassing the total amount deployed to defend the currency in 2022. Despite the scale of these efforts, the yen's descent continued.

https://www.bangkokpost.com/opinion/opin...e?tbref=hp

[sclim]

the response from non us base is clear.
your plan your game we are exiting. so gold gone up with more central bank buying.
people change from usd as backing to basket of currencies.
eventually us will run out of tricks to force money running for safety of usd.
reaching the rate of dimishing return with each tricks.
already interest has to keep high for demand of their loan. very difficult to reduce rates. then eventually high rates also no use but reduce usd versus other currencies exrate. which is what we see now.
2022 high of 111 to current 101.79. what next ? a slow reduction and stablaised at?

[sclim]

us gov need austerity measure. but they are easy money drug to ram up support until the end.
the end is near

[Sticw]

As much as we like to decouple but it will never work.

USD is mostly held by everyone. Everyone's economic growth is tied to US consumption. That 300mil consumption based has yet to be replaced by anyone. No where else in this world can we find another consumer base to take up the slack. If you notice, all other economies and their growth is dependent on USA market. If USA is down everyone goes with them. A cheap USD actually is a worse off position for everyone over time, a strong USD is actually a better option for our growth.

Go back to your ISLM model and see it at a global len. Without that balance, we are all fucked. USA does the consumption so that everyone else does the production to grow our economy. In the last 4 decades, China took most of the manufacturing role (and gains) that led to their massive speedy economic development much like what SEA had before the opening up of China.

We rather pray USA continues to consume and we snatch the pie from China, than a downturn starting in USA and a cheaper USD...