Comment on Are We All Just Living Beyond Our Means Now?
gravitas_deficiency@sh.itjust.works 1 week ago
Money’s gonna stop mattering in the states soon, I think. Orangeboi is probably gonna try to replace the USD with NFTs or some crypto scamcoin or something. The rest of the world needs to move away from the USD, and fast.
I wish I was joking.
gandalf_der_12te@discuss.tchncs.de 6 days ago
It’s called deglobalization.
The US dollar became relevant internationally because it allowed goods and services to be exchanged world-wide. Notably, oil is sold and bought in USD, which is super-convenient to the US federal bank because they can control how much oil they can buy by just printing more money and going into more debt.
However, as I and many other people have rightly predicted, going into debt does indeed hurt the federal household. At a certain point, it just becomes unsustainable, tearing not only the federal budget but all of the government and political domain down with it. That formally causes the collapse of the US. I’m not joking. The US will re-build itself eventually but by that time, it will have lost a lot of credibility.
Beetschnapps@lemmy.world 6 days ago
[heavy sigh]
That’s just not true, none of it.
“The US dollar became relevant… because it allowed goods and services to be exchanged globally.”
Wrong. Any currency could enable that (look back at Spanish doubloons) the US dollar filled that niche more recently because coming out of ww2 the us had a relatively untouched territory and a monster of an economy that the rest of the west couldn’t provide otherwise. The US filled an economic vacuum by virtue of good fortune. They then acted over the next century to capitalize on that situation. There’s was nothing special about the dollar that made this a unique achievement.
Oil was sold in OPEC dollars because at the time we made them, not because the dollar was unique or anything compared to all other currencies.
“However as I have predicted debt…”
Again wrong and gonna stop you right there chief. Debt existed well before this issue and other counties will continue to encourage specific levels of debt well after this issue frankly because you again wrong and there’s a much better understanding of economics than what your spouting.
The US isn’t in this position because of the existence of debt they are in this position because of reckless actors (almost always in the GOP) spending a trillion on Iraq, or taking up the mercantilist perspective of a thalidomide baby writ large.
This is the by product of people who don’t understand interwoven economics, don’t add to that ignorance and blame it going in to debt while ignoring that the us debt has existed far longer than any of these issues.
gandalf_der_12te@discuss.tchncs.de 6 days ago
I want to place bets on the debt becoming a problem eventually.
I understand saying “debt isn’t a problem” is easy, as talk is cheap. I am however so sure about my position that i’m willing to bet money on the fact that debt will indeed become a problem, even for states and governments. Where can i make such a bet?
EnsignWashout@startrek.website 3 days ago
International stock index funds are, in my option, the best place to make that bet. It’s been a losing bet (compared to other index funds) for decades, but you might notice that lots of folks still buy a solid amount as a hedge, anyway, because they agree with you, or at least aren’t willing to bet their entire retirement that you’re wrong.
HappinessPill@lemmy.ml 6 days ago
Isn’t because the dolar was very stable, strong and the US would have gold reserved for justifying the stability.
And later they said fuck gold and adopted a economy based in vibes and rich people feelings, that are now going to shit?
So they are now going to use crypto to say their money have some worth and isn’t based on a concept of stability and vibes?
EnsignWashout@startrek.website 3 days ago
Things going to shit, in the US, correlates strongly with Reagen Era economic policies. The term “trickle down economics” says a lot about why it didn’t benefit most people.
In my option, all presidents from both major political parties since Reagan have done more to make it worse, than better.
My conclusion is that what’s really going on is class warfare by the ultra rich against the rest of us…