My guess would be it’s to weaken the value of US currency against others, making assets held overseas (like in China, Russia, or Saudi Arabia as a few totally random examples) worth more.
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qwertyqwertyqwerty@lemmy.one 9 months ago
Devaluation = Inflation, right? This sounds like a terrible idea.
Jimmyeatsausage@lemmy.world 9 months ago
HootinNHollerin@lemmy.world 9 months ago
Traitors the lot of em
numbermess@lemmy.world 9 months ago
Well, this tracks with their philosophy of “pick whatever choice is the worst option possible,” so at least it’s unsurprising.
jkrtn@lemmy.ml 9 months ago
Inflation? But that’s what they’ve been blaming Biden for the last four years. Surely Repubs would behave with consistency and integrity and not deliberately do the exact thing they have been screeching about.
muffedtrims@lemmy.world 9 months ago
Money printer go brrrrrrrrrr
sonori@beehaw.org 9 months ago
Yep, it would be fascinating if it happens because not only would the US be comiting compete economic suicide and almost certainly take most of the gobal economy down with it to a decent degree thanks to the US dollar’s heavy use as a foreign reserve, but hyperinflation would hit his donors the hardest while wiping nearly all debts out of the US system.
Given the economic chaos the US stock market, realstate market, and retirement savings would all go down with it. The only possible winners to such a move are Russia, and to a lesser extent China and the EU.
Bartsbigbugbag@lemmy.ml 9 months ago
Wouldn’t do anything to wipe out the debts of the working class. Inflation doesn’t translate to increased wages, as we can clearly see from the last few years. It would wipe out the debts of the rich, though. China’s currency is sort of artificially pegged against the dollar, a devaluation of the dollar could cause them a lot of problems also, as they’d be forced to devalue their own currency to maintain its peg.
sonori@beehaw.org 9 months ago
Except we did see the working classes wages keep pace with and even outpace inflation in the last few years? Inflation has always been primarily a threat to the rich, who by the common definition make their money off of their savings, and so are directly affected by those savings diminishing in real value.
Similarly depts are nearly always denominated in the local currency and so are directly 1 to 1 diminished by the inflation of that currency. For example if you owe two hundred thousand on your mortgage and you see fifty percent inflation then you have effectively just been handed a hundred thousand in real value directly out of the pocket of the person who lent you that money.
None of this is to say that very high inflation is good in an economy where people need to save money for retirement, but it does have some silver linings for the poorest who already have depts rather than savings and who are generally paid in real value.
In a very high inflation scenario where the US was intentionally trying to devalue its currency I expect China would abandon its peg against the dollar, and everyone would likely try and reduce their dependency on the dollar, which would in turn probably lead to a feedback loop that would exacerbate the issue.
I would not expect anyone to come out of the almost certain gobal ressecion better off, except maybe Russia given how little they are tied to the gobal economy and how they’ve run down their forex reserves, but I imagine that unless every economist in China and the Eurozone takes the decade off they will come out of it a lot better off than the US would.
Bartsbigbugbag@lemmy.ml 9 months ago
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Workers adjusted real wages have not caught back up to where they were Q1 2021, and have begun declining again…