USA dollar and USA economy are Not Same

[Koro-Sensei]

It is not the same but they are quite related to each other. One is dependent to the other. However, US dollar is getting weak due to stimulus checks given and more money are printed this year alone. It even surpasses the printed money after world war 2 and it is quite bad for US dollar but probably be good for economy.

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[magneto]

You're right in saying that the US dollar's movements do not encapsulate the US economy's underlying fundamentals all the time.

However, holding USD is probably the worst decision you can make right now. Inflationary risks are extremely high with YoY inflation of 5% or more, and there are just overall long run risks with holding a depreciating asset like the USD.

It's not even going to be the global reserve currency in a decade's time. It's almost guaranteed that the CNY or some decentralised crypto will overtake its status.

[Xinarae*]

There are differences between the US dollar and the US economy when the value of the dollar falls the country's economy goes down. If the stability of a currency depends entirely on its issuer then the condition of the dollar is very fragile dollar liquidity attracts investors they consider it a safe currency because the dollar can be exchanged quickly at any time. But it also has the opposite side everybody rushes towards the dollar when they smell any danger but most of the major blows to the world economy come from the united states.

[amishmanish]

--snip--
USA dollar Will be the Next  3-4 years best asset You Can Ever have.

How can holding cash be termed as an asset for 3-4 years, especially when the interests rates on deposits are negligible and inflation is slated to increase with the printing of money?

The World Elite Now try to save USA dollar but to do this the taxes around the world must go higher.

If taxes were to be rationalized, it would affect the levels of inequality and welfare spending. How it helps the US dollar is questionable? And why exactly does someone have to "help" the US dollar when it has the richest country and the most powerful army in the world backing it? If anything, the US Dollar needs to stop having such an over-arching influence. Throughout much of the past half century, we have already witnessed how the petro-dollars have kept the most ruthless regimes in place, helped to fund devastating wars and badly affected world peace and political stability.

The dollar needs to be disentangled from politics. The Fed by itself wouldn't be such a hated entity for Bitcoiners if they had done their job as an autonomous institution and not as the money printer for populist politicians.

[KuchorzKFC]

In poland we dont have dollar but we have polish zloty and the best inflantion
Polecam stronę na której dowiesz się kto do ciebie dzwonił
https://www.czyj--numer.pl/

[Gyfts]

2022 Will be strong dollar but Not so strong Economy in USA.
Anyways Biden Don't care about as much as of People but Biden was sent to be president to save dollar.
To save dollar a lot taxes need to have.

The dollar is not strong with an 8.6 inflation rate with sign of slowing down. Biden has compounded the federal reserve's ineptitude by incentivizing lockdowns through COVID fear/hysteria, large unemployment checks, and unnecessary spending to the tune of trillions. He's made the situation worse and the pitch for Biden was "not Trump." No one legitimately thought he could save the U.S. economy or reverse the spending that happened before his presidency during the 2020 COVID lockdowns.

USA dollar Will be the Next  3-4 years best asset You Can Ever have.

How so? You mean a currency that is, by design, expected to depreciate by 2 percent yearly if the federal reserve can do its job? 2 percent is the target by design. The reality is 4x that amount using May's inflation report. With this much USD cheerleading you should ask the fed to hire you for their marketing initiatives.

[Prosperiousproduct]

USA dollars is the physical money in an economy, comprising the coins and paper notes in circulation. Currency makes up just a small amount of the overall money supply.
While the economy's performance is at the heart of the decision to buy or sell dollars. A strong economy will attract investment from all over the world due to the perceived safety and the ability to achieve an acceptable rate of return on investment. So we all see that currency and economy are not the same. Using USA dollar and economy as a good example.

[Cryptodebjoe]

its not the same the economy depends on the value of the dollar there are many other internal factors that determines the economy; Personal Consumption Expenditures. Consumer spending contributes almost 70% of the total United States production, Business Investment, Government Spending,Net Exports of Goods and Services.

[Freeesta]

The US is now entering the stage of financial crisis. In this case, expenses exceed income, and debts exceed liabilities. In this case, it is necessary to either raise taxes or print new money. America chose the second variant. The big difference between rich and poor people provokes internal political tension. New money is not backed by real assets and all this requires the government to make the right decisions. Many factors indicate that the crisis in the United States will drag on for several years and what its consequences are not clear today.

[justdimin]

The dollar is not strong with an 8.6 inflation rate with sign of slowing down. Biden has compounded the federal reserve's ineptitude by incentivizing lockdowns through COVID fear/hysteria, large unemployment checks, and unnecessary spending to the tune of trillions. He's made the situation worse and the pitch for Biden was "not Trump." No one legitimately thought he could save the U.S. economy or reverse the spending that happened before his presidency during the 2020 COVID lockdowns.

It is really a funny feeling to see republicans trying to spin this on Biden. As a progressive myself (and not an American at all, thank God) I could see why this has nothing to do with Biden, but since you guys are just hating on democrats all the time, you would love to spin it for him. Dude took over a nation where Trump gave 3x more money to public than what Biden did, he did 800 bucks or something if I am not wrong whereas Trump did 2 checks of 1.2k dollars, and that is just to people, we are talking about something like 3 trillion dollars printed and distributed to the public.

And now Russia and Ukraine is fighting, and oil prices are high EVERYWHERE and the food prices and inflation is high EVERYWHERE but yeah... Biden did it, sure... . Thank God I am not an American.

[DrBeer]

I don’t quite understand why there are so many fantasies about the collapse of the US economy. Firstly, this is unlikely to happen, except in the case of the type of plot of the movie "The Day After Tomorrow"
Secondly, it is a powerful economy backed by advanced technologies. Where will China go if they remove American technology and equipment, think about it?
Third - the army, political weight. And most importantly, the dollar is the blood of the world economy. It's just that not everyone understands what will happen to the world with the collapse of the dollar as an international base currency - the markets, economies, and all other countries where they were will instantly collapse. Not a single currency, today, and in the foreseeable future, will be able to replace the dollar as the settlement standard in the global economy.

[Altryist]

You're right in saying that the US dollar's movements do not encapsulate the US economy's underlying fundamentals all the time.

However, holding USD is probably the worst decision you can make right now. Inflationary risks are extremely high with YoY inflation of 5% or more, and there are just overall long run risks with holding a depreciating asset like the USD.

It's not even going to be the global reserve currency in a decade's time. It's almost guaranteed that the CNY or some decentralised crypto will overtake its status.

It is difficult to make such forecasts, especially for such a long time period of 10 years, when our world is so changeable. But I find it hard to believe that some kind of currency is able to take the place of the world currency instead of the dollar. Of course, if you look at the world history of the economy, then world currencies have changed, but this is a very complex and long process.

[TheNineClub]

Not really sure what I read on OPs post. Are there any charts, and calcualtions or educated gueses to your claims? Honestly, the US economy is, at this point, still not at such a bad point as people make it out to be. Could it get there, yes, but so far it's all relative to what can be handled by their financial institutions.

[kryptqnick]

I agree that the USD doesn't equal to US economy. After all, El Salvador has a pretty bad economy but their main currency is the USD. As for the idea of the strong dollar but weaker US economy, I don't think so. The US is still #1, whereas the USD is getting weaker from inflation. Overall, I think both will be saved by the power that US has over political world affairs and by the heavy reliance of many countries on the USD as a reserve currency. Also, while policies can change, US has strong institutions to maintain the fairly strong economy.

[amishmanish]

I look at it little differently. US was proud of its dollar. It the US dollar which made US great. The world economy depended on dollar. US was the country which made great scientists, which made great inventions. US was not greedy, not always. US leaders like Lincoln stood for right. But after world war, somewhere during cold war US changed. It became a economy steered not by innovations but by profit. 
Now US dont even recognize the legitimate needs of its people. All it cares is for is profits.

[Findingnemo]

2022 Will be strong dollar but Not so strong Economy in USA.
Anyways Biden Don't care about as much as of People but Biden was sent to be president to save dollar.
To save dollar a lot taxes need to have.

USA dollar Will be the Next  3-4 years best asset You Can Ever have.

The World Elite Now try to save USA dollar but to do this the taxes around the world must go higher.

No More tax heavens all the money what is too much need to collect from the world.
Less money means stronger currency.
Once there is collected a lot dollars then can make intrset rates higher.

This way we all together can help save the USA dollar.
I Don't mind to cut my spendings if I can help to save the dollar as Long as I have
Usdc stable currency.
Or usdt coin.

USD or any other fiat in this world is having insane inflation rate atleast in the last 40 years or so then how can you say that USD is the best asset to hold at this time? No real investor will hold money in this time they will just go for anything safer at this moment to preserve their assets value but certainly its not the fiat you are talking about. And also one who has money then this is the right time for them to enter into the market either its stocks or crypto or anything whichever is in red for a while now.

[bittraffic]

As of now USD still the best to hold while the inflation in our country is also fast dropping. But I'm not sure if what I could buy with USD is the same as what I could buy 2 years ago.  Inflation affects each of us, I'm already just ordering food because I'm not going out to ride due to gas.
There could be something to earn if we are to hold Rubles or Yuan, I hope there will be stablecoin for this in currency in crypto.

[Sir Legend]

Of course, the economy does not always depend on currency, even though inflation is strong but if the economic fundamentals are strong then this is not a problem, the central bank's job is to ensure that financial circulation can be good so that it automatically increases financial position & confidence.

[Mauser]

This way we all together can help save the USA dollar.
I Don't mind to cut my spendings if I can help to save the dollar as Long as I have
Usdc stable currency.
Or usdt coin.

Why do we need to save the USD so desperately? To me it doesn't seem that the USD is in trouble, actually the US Dollar is quite strong at the moment. The Dollar is close to it's ATH against the Euro, and with the rising inflation around the world the FED is more aggressive to raise interest rate to try and contain the inflation. This will create more upwards pressure on the US Dollar. If we now also start buying USD then the price will go up even higher which is bad in my opinion. A country usually wants a weak currency than a strong currency to make their exports cheaper. With a lower value of the currency the country can export more for the same price internationally which will increase economic growth at home. Stable coins are of course profiting from a strong US Dollar, but their upside is always limited to one Dollar.

[darewaller]

There’s something we all need to understand, and that is the big difference between currency and economy. The Economy of any nation is greatly dependent on the value attached to the currency of that nation. The performance of U.S economy lies on the decision to buy or sell dollars. A strong economy will attract investment from all over the world due to the perceived safety and the ability to achieve an acceptable rate of return on investment.

And again, if your country is such that have difficulties producing commodities themselves, that is, they always have to import, then you realize money will always have to be leaving the economy to the other country you are importing from. So, it’s quite rare to find a country whose currency value is equated to the economy.