Comment on Taxes are cool
Steve@communick.news 10 hours agoI don’t understand.
exporting it’s inflation globally
Do you mean inflation as increasing prices?
Or increasing money supply?
Neither matters realy as the USD is the global currency. Foreign and domestic together, are a single economy from point of view of the USD.
CapuccinoCoretto@lemmy.world 9 hours ago
That’s it! You answered your own question. Because it’s the global reserve currency, it can inflate its money supply and gain the domestic benefits of money for nothing, but the negative impacts of “relatively more dollars chasing relatively fewer goods” are diluted among all global economies using the USD.
It’s a limited and temporary advantage. As the world is finding out the hard way, any dealing with US assets now poses incalculable geopolitical risks. Not just from losing the defacto reserve status, but both from abandoning the rule of law for autocracy as well as from disruptive warmongering, tarrifs, broken deals, loss of trust and the inability to bargain in good faith.
Steve@communick.news 8 hours ago
Yah… That’s econ 101 stuff I’m not and haven’t been confused about that. Not sure how that’s ‘exporting’ inflation.
I don’t understand what you’re trying to say.
I’m not sure you understand what I’m trying to say.
CapuccinoCoretto@lemmy.world 6 hours ago
You:
Me:
Steve@communick.news 6 hours ago
I guess if you want to define the term that way, you can.
Seems an odd choice of phrase.
If you export something, you don’t have it domestically any more.
But this doesn’t work that way.
It’s more shareing inflation globaly. Diluting it maybe.
But still, that’s nothing to do with what I was saying.
Which is why I’m not sure you understood what I was saying.