DeepSeek launched a free, open-source large-language model in late December, claiming it was developed in just two months at a cost of under $6 million.
It is also because the USA is the reserve currency of the world with open capital markets.
Savers of the world (including countries like Germany and China who have excess savings due to constrained consumer demand) dump their savings into US assets such as stocks.
This leads to asset bubbles and an uncompetitively high US dollar.
The root problem they are trying to fix is real (systemic trade imbalances) but the way they are trying to fix it is terrible and won’t work.
Only a universally applied tariff would work in theory but would require other countries not to retaliate (there will 100% be retaliation).
It doesn’t really solve the root cause, capital inflows into the USA rather than purchasing US goods and services.
Trump wants to maintain being the reserve currency which is a big part of the problem (the strength of currency may not align with domestic conditions, i.e. high when it needs to be low).
It is also because the USA is the reserve currency of the world with open capital markets.
Savers of the world (including countries like Germany and China who have excess savings due to constrained consumer demand) dump their savings into US assets such as stocks.
This leads to asset bubbles and an uncompetitively high US dollar.
The current administration is working real hard on removing trust and value of anything American.
Yuuuuup…might just put their market into…🤔 Freefall?
The root problem they are trying to fix is real (systemic trade imbalances) but the way they are trying to fix it is terrible and won’t work.
Only a universally applied tariff would work in theory but would require other countries not to retaliate (there will 100% be retaliation).
It doesn’t really solve the root cause, capital inflows into the USA rather than purchasing US goods and services.
Trump wants to maintain being the reserve currency which is a big part of the problem (the strength of currency may not align with domestic conditions, i.e. high when it needs to be low).
I consider myself to be a Saver of the World.
Our Lord and Saver