[theold]

The mighty dollar is steamrolling everything right now, causing issues for economies almost everywhere—except in the US. That means that, for now at least, it’s not America’s problem and the historic central-bank-fueled surge in the greenback is unlikely to abate anytime soon.

By some measures the US currency is already stronger than ever, eclipsing the highs of the Covid-19 pandemic from early 2020. The pain it’s inflicting has echoes of the mid-1980s, when foreign exchange chaos forced the world’s most important finance officials to join hands and impose a solution on markets. Right now, though, it’s every country for itself as the US administration pushes back on the idea of coordinated market action.

https://www.bloomberg.com/news/articles/...-pound-gbp

[theold]

For US consumers, a stronger dollar means cheaper imported goods in the shops and more affordable holidays abroad.

For everyone else, the picture is less rosy.

The strength of the dollar also makes it more difficult for many developing countries to repay their debts, which are often held in US currency.

“As a result, many countries will struggle to find an ever-increasing amount of local currency to service their debts,” Tziamalis said.

“These countries will either have to tax their economies more, issue inflationary local money or simply borrow more. The results could be deep recession, hyper-inflation, a sovereign debt crisis or all three together, depending on the path chosen.”

https://www.aljazeera.com/economy/2022/9...llar-soars

[Blasterlord2]

I think a stronger dollar defeats the purpose of the rate hikes. The hikes are supposed to curb spending by people, so that they do not chase after limited goods. But with a stronger dollar, they have no problems buying from overseas. This has a big impact on inflation in other countries but ultimately will affect them too.

[A2Z]

For any central banker there have only 2 tools to fight inflation the interest rate and the currency. Fed Powell was in denial that inflation is transitory (likely pressure by politics). Powell was hoping that supply constraints wd ease off but sway still kenna with covid lockdowns, russian ukraine invasion causing the energy to pop up. The only safe haven to park you $Billions is in US$. The strength of US$ has taken away some inflationary pressure (recalled when Trump imposed imports duty on China, Rmb/US$ strengthen to almost 10% to offset the import duty charges). RMB was touted to be the new currency to replace US$ but it pooped. Powell woke up realized he was way behind the curve (Even our local ocbc research head can be better than him, dbs too). So now die die must kill the inflation monster, hence sell whatever assets and pack your funds in US$. The bigger picture is all big funds, banks are doing that.

[growthorvalue]

I think a stronger dollar defeats the purpose of the rate hikes. The hikes are supposed to curb spending by people, so that they do not chase after limited goods. But with a stronger dollar, they have no problems buying from overseas. This has a big impact on inflation in other countries but ultimately will affect them too.

whats the point of strong dollar when you have less of it..... most Americans are on debt.... think the mortgage just hit 7%... from 2% one year ago.. imagine this happening in sg... many will jump off their HDB...

[Sticw]

Let me share my humble pov on what's happening here. This havoc is not without planning but in fact a sop that existed since the formation of USD as global reserve currency courtesy of the Rothschild and Rockefeller... It's stage out to grow the world and then to collect back the chips each round. And each round it gets bigger because the world population has been growing through each war.

The very first time they tasted the sweet gains was during the first world war. And the mode of operations has been more or less the same. And they had the world in their hands even when USD is no longer back by gold. The strong dollar and inflationary pressures will collapse all other economies leading to greater ownership of all assets across the globe. The average American while not hurted by the strengthening USD will be taken out by the massive debt they already are enslaved. For the rest of the world once their economies collapse, they have no choice but to borrow from imf and wb to restart the next cycle but giving up on their sovereignty...

Those that do not take the loans will be isolated and cornered unless they choose to become a China or Russia where they have to only depend on internal consumption for bitter winter...