Kenneth Rogoff, a Harvard economics professor and author of "Our Dollar, Your Problem," dives into the declining strength of the U.S. dollar, exploring its pivot from global dominance amidst rising tariffs and interest rates. He discusses the intricate ties between military power and currency stability, as well as the looming threat of emerging currencies. The conversation also sheds light on upcoming cryptocurrency regulations and the sociopolitical undercurrents of these developments. Plus, listeners share books that help them reset during tough times.
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insights INSIGHT
Dollar's Rise as Reserve Currency
After World War II, the U.S. emerged economically stronger than the UK, making the dollar the global reserve currency.
The dollar's dominance was cemented by linking it to gold and by global reliance on the US economy.
insights INSIGHT
Unusual Dollar Weakening
Normally, rising U.S. interest rates strengthen the dollar by attracting money.
But recent episodes saw money fleeing the U.S. despite rising rates, signaling a weakening dollar trend.
insights INSIGHT
Exorbitant Privilege Explained
The dollar's "exorbitant privilege" means the U.S. can borrow cheaply and invest abroad without similar reciprocal obligations.
This status grants the U.S. immense economic benefits and global influence.
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In this short story, Montresor, the narrator, seeks revenge against his acquaintance Fortunato for an unspecified insult. During the Carnival season in an unnamed Italian city, Montresor lures Fortunato into his family's catacombs with the promise of tasting a rare Amontillado wine. Once there, Montresor chains Fortunato to a wall and bricks him up alive. The story explores themes of revenge, pride, and the darker aspects of human nature, all told from the perspective of the vengeful Montresor[2][4][5].
Our Dollar, Your Problem
Kenneth Rogoff
Pride and Prejudice
Jane Austen
Published in 1813, 'Pride and Prejudice' is a novel that revolves around the lives of the Bennet family, particularly the second eldest daughter, Elizabeth. The story is set in the early 19th century and explores themes of love, societal expectations, and personal growth. The novel centers on Elizabeth's tumultuous relationship with the wealthy and proud Mr. Darcy, whose initial arrogance and reserve gradually give way to a deeper understanding and mutual respect. Through their interactions, both characters learn to overcome their prejudices and flaws, leading to a transformative journey of self-discovery and redemption. The novel also delves into the societal pressures on women to secure marriages, the importance of family, and the nuances of social hierarchy during the British Regency period[3][4][5].
The Martian
Andy Weir
R.C. Bray
The Martian tells the story of astronaut Mark Watney, who is presumed dead and left stranded on Mars after a fierce storm. With limited supplies, Watney must draw upon his ingenuity, wit, and spirit to subsist and find a way to signal to Earth that he is alive. Meanwhile, NASA and a team of international scientists work tirelessly to bring 'the Martian' home, while Watney faces numerous challenges in his quest for survival. The novel is praised for its blend of science, humor, and suspense.
Things aren’t looking so good for the U.S. dollar. Though it’s spent decades as the world’s reigning reserve currency, it’s been weakening lately thanks to tariffs and uncertainty in the U.S. economy.
But its declining value, has been in the making for a while, according to Harvard economist and author of the new book, “Our Dollar, Your Problem,” Kenneth Rogoff.
“The problem we’re facing is that, independent of this dollar phenomenon, interest rates are going up,” said Rogoff. “And if you’re the world’s biggest debtor, that’s tough.”
Rogoff joins Kai and Kimberly to unpack how the greenback became the world’s go-to currency, what a reserve currency actually is, why it’s been losing some of its value lately and what might take its place. Plus, how does military power tie into all this?
We’ll also get into some potential cryptocurrency regulation coming down the pipeline and discuss the troubling parallel between Trumpism and Brexit.
Then, you tell us what books help you reset – from classic literary romances to an apocalyptic sci-fi tale. And, our intern, Zoha Malik (hi!) shares her answer to the Make Me Smart question.
Make Me Smart 
