Odd Lots Lots More on JD Vance and the Future of the US Dollar
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Jul 19, 2024 
Matthew C. Klein, co-author of "Trade Wars Are Class Wars," discusses the complexities of the U.S. dollar's dominance and its implications for the American economy. He argues that this currency strength may create more burdens than privileges. The conversation dives into JD Vance's views on how dollar dominance may not align with U.S. interests. Klein also explores the potential long-term effects of aggressive tariff policies and their deeper implications for trade relationships and economic stability.
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Dollar Dominance: Burden or Privilege?
- J.D. Vance, Republican nominee for vice president, suggests that U.S. dollar dominance may not benefit America.
- He has expressed this view in interviews and testimonies, even questioning Jerome Powell about it.
Dollar's Impact on US Economy
- The U.S. financial system caters to foreign savers, impacting the domestic economy.
- Foreign preference for saving in dollars leads to increased U.S. debt and potentially lower incomes or higher spending.
Managing Foreign Capital Influx
- If foreign saving trends continue, the U.S. government should manage the influx of foreign capital.
- Prioritize federal borrowing over private borrowing, invest in productive assets, and support domestic manufacturing.
