On 2022-07-07 at 05:12 UTC, I asked whether the UAE’s currency peg could leave its assets artificially overvalued relative to assets elsewhere. I said the AED was pegged to the dollar and had largely not depreciated by the 7–8 percent that other world currencies had lost. This was a question, not a conclusion: I did not specify which currencies, the measurement period, or any asset valuations. The question relates to cracks in dollar dominance and how america sustains its debt.
In my reply, I asked whether the AED’s peg to the dollar could progressively make Dubai less competitive, since labour had become cheaper elsewhere from an export standpoint. The quoted question about the peg avoiding 7–8 percent depreciation and possibly overvaluing UAE assets was @nikhilkamathcio’s, not my independent claim; I left both the asset-valuation question and the competitiveness question open.
I asked whether the US was pricing itself out of being competitive by allowing the dollar to appreciate beyond control. I raised this question for businesses in social media, software, services, and e-commerce, and asked when it makes sense to outsource talent, offices, or other functions. I also pointed to high taxation as an additional concern; I gave no threshold or conclusion. This question connects to cracks in dollar dominance and how america sustains its debt.
On 2022-09-23, I said depreciated currencies could make products more competitive in the US domestic market, across manufacturing and services. In a related post, I argued that Indian services had become more competitive in the US, made a pragmatic case for moving away from the dollar in international trade, and floated selling US stocks to buy emerging economies as a possibility, not a completed decision. The post did not explain how the comparison was measured or how to implement a move away from the dollar. This connects to cracks in dollar dominance and how america sustains its debt.
I said Indian services were 10 percent more competitive in the US than they were a year earlier, without providing a method or source for the comparison.