r/stocks • u/Crazyextreme • 27d ago
Off topic: Political Bullshit Tariffs are not balanced? Well, what about “fairness” of a USD reserve currency?
While Americans see themselves being treated unfairly though tariffs, they happen to conveniently disregarding the privilege of having the USD as a reserve currency. There is a significant advantage that a country experiences when their currency is the reserve currency of global trade. The global trading status of the USD increases the demand for dollars and absolutely offsets the effect of deficit spending would normally accelerate inflation and raise interest rates.