Nouriel Roubini

And it doesn't matter because the inflow capital, equity investment to finance it, FDI, VC, startups, you name it, portfolio investment is going to finance that.

So not only American exception is not over, the exorbitant privilege of the US dollar is not over.

And even the weakness of the dollar is only short term.

Over the medium term with 4% growth, the dollar is going to be much stronger and the euro is going to be much weaker.

Listen, in the next few months, it could weaken more, depending on relative monetary policy.

But I'm asking myself, suppose you have 2030 at the end of this decade, and U.S.

growth is four, and Eurozone is stuck at 1%.

Real interest rates, real exchange rate depends on real growth rates.

The euro has to be well below parity.

No, I don't think so.

I don't think so because, first of all, to build AI data centers, there's supply chains of construction, of equipment, of everything, cooling, heating system, you name it, the chips, supply chains, and so on.

And this booming CapEx is maintaining economic growth strong, and that's gonna be good for the economy and for many other sectors.

And secondly, it's not just the hyperscaler Mark VII doing investment AI.

If you have any S&P 500 firm today and you don't have AI strategy, you're dead because you could be disrupted by a competitor or by tech firm or by whatever.

So everybody's trying to play with AI.

Now we're not yet seeing the significant increases

in productivity growth.

We see them at the macro level, by the way, but we don't see them for every firm.

But the profit margins for every S&P 500 firm has increased.

Real revenues for all S&P 500 firms have gone up since strategy has been launched by 15%, so 5% per year.