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Comment by phkahler | Hacker News Reader

The dollar is going down in value right now. Thats the plan. It makes foreign goods more expensive and exports more affordable to other countries. Meanwhile it should have less inflationary pressure on domestically produced stuff like housing.

I dont know if this is going to work or collapse. If it does work IMO they still need to reduce the debt - current actions are because we are backed into a corner, so that needs to be corrected.

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There is no plan. There is just chaos.

There is a plan, it's a deliberate assault on financial institutions with the intention of seizing financial control.

The "Mar a Lago Accord" plan [1], for those curious. The US debt is one major rationale behind the strategy.

It's a dangerous plan that relies on keeping allies happy and re-establishing hegemony via a Plaza Accords / Bretton Woods 2.0 type system.

It's not going to work if you simultaneously piss all of the allies off.

[1] https://www.youtube.com/watch?v=1ts5wJ6OfzA by Money & Macro, which is a fantastic economics YouTube channel. Patrick Boyle has also spoken about this in pieces.

It also increases profits for multi-national US companies since they get paid in other currencies, which they then convert to dollars locally. Basically, they have favorable FX tailwinds.

Eh, it's not a plan, it's make believe.

It's a flimsy back-filled rationale thrown on top the mercurial (and often sadistic) whims of an American Caligula, so the elite enablers can pretend there's something rational - or even good - about the chaos and destruction they are supporting.

There isn't. It's just chaos and destruction.

What scares me is that lots of American believe there is a plan and that the current administration is competent

Who is that "we" backed into corner? USA as such certainly not.

Maybe you mean "pro-democracy anti abuse" people? Those yes. But administration and far right are not in corner. They are in full active act achieving exactly what they wanted.

> Meanwhile it should have less inflationary pressure on domestically produced stuff like housing.

This is pure fantasy. A weak dollar makes it more affordable for foreign capital to buy US assets, yes, including housing. The president himself recently admitted on video that he plans to make house prices rise.

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