Very interesting exchange from March 2023 between JD Vance and Jerome Powell. Vance questions Powell on how the world reserve currency status and a strong $USD impact the U.S. domestic economy. Triffin Dilemma & Dutch Disease top of mind for the Trump admin... (0:50 start)

TLDR: Vance: In Appalachia, coal boosts the economy- but creates a "resource curse" (Dutch Disease). Similarly, the USD as the reserve currency gives us buying power but hurts domestic producers (Triffin Dilemma). D.C. loves the strong USD, but now all we produce is "financial engineer and diversity consultants". Powell: There's some economic theory supporting that (indirectly referring to Triffin Dillema), but there's no other candidate for the world reserve currency. Vance: Does it make it harder for the U.S. to control import/export flows and stabilize manufacturing? Powell: It's about the strength of the dollar. That's the Treasury's matter not the Fed's. /end seems like the trump admin wants to nuke the $DXY

@PrestonPysh @LukeGromen not sure if y'all have seen this.

It's a fabulous question.

100%.

The US Dollar is the reserve currency because at Bretton Woods it was agreed that since the US Dollar was convertible and redeemable in Gold, it was as good as gold. No longer true since Aug 1971 👽🤔🥇

Thanks for sharing. First politician I've seen display an understanding of these issues.

@LukeGromen When the guy asking the question understands better than the guy answering. Interesting Powell “couldn’t recall the economic downside theory”

@profstonge The sickening part of this clip is that Powell continues to push misinformation by redefining inflation. He says: “Mainly, what affects inflation in the US is domestic supply and demand.” He is talking about monetary policy. He knows this is a false statement.

Caption this :

This is a 💎 The fact that JP seems to have or be unwilling to share knowledge of an important economic question is scary @JDVance1 great questions

Powell is wrong, the dollar is the world reserve currency because we tricked everyone else into believing our lie that USD would be tied to gold

Better understanding than most politicians, but IMHO he is still conflating two things: 1. Western de-industrialization stemming from IR artifically kept too low for decades, on top of too high labor costs/regulations, which is really not specific to the US (encourages financialization instead of capital formation) 2. The statute of world reserve currency issuer which transforms the US into a capital magnet, therefore keeping the USD artificially higher, and preventing US exporters to compete on prices. However, it doesn't hinders industrial development altogether, it rather forces industrialists to produce higher value/more capital intensive goods (Switzerland and Japan are good examples). But they also have to be incentivized to build such industries in the 1st place, which isn't the case when your IR have been below real growth for decades (cf 1.).

@LukeGromen Who’s that charming gal sitting next to him 👀

Had a glance I don't understand why anyone would care let the free market work and let the prices drive economic decisions. Any problems we are having is the lack of a free market

Look at the way lummis looks at that dude 🤣🤣

Incredible clip, thanks for sharing.

And look who was sitting next to JD Vance.

And who is sitting directly to his right???

It could be that if Trump wins, they will weaken the dollar for the reasons mentioned (stronger industry). This only works to a certain extent (Triffin dilemma); you can't have both. 1/5

Sen Lummis looking at him like a proud mother 😂

bro is that Lummis next to him? Chills

Jpeezy: Inflation is from supply and demand. How do they get away with lying all the time.

Stud

Summit looking at JD as if she had a crush on him

@BitcoinPierre Lummis looks like she’s ready to give him a handy.

Great job! 💯

What a pearl you found, thanks Dylan

This just in: Deep State open to assassinating the president to preserve the Global Reserve Currency status of the Dollar.

Very painful and pricy way to get interest cuts @realDonaldTrump

Terrible answer He got stumped

"Our control over inflation..." what Powell means of course is that inflation was our chief export.

Love the look on @SenLummis face throughout this, she gets it. Also, they look chummy which is bullish!

🇺🇸 Put America First! 💯 We have the best chance with Trump & Vance. ✅ Wear it Proudly here: