191–200 of 913 posts
Losing the dollar as a reserve currency is losing the empire.
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Euro?
The harsh reality is that a federated state system with a very weak governing body economically and politically is extremely unlikely to be the global trade currency.
The dollar isn't indestructible. If not the Euro, what?
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As time goes on, fewer people are alive that predate the EU and more people will perceive it as a lasting institution. Additionally, we've now seen the EU survive the departure of a major economic power (the UK). More people are certainly willing to believe in the stability of the EU now. Another major currency is the Yuan, and some countries may be as willing to trade in Yuan to improve relations with China, so perh…
The major benefit of the US Dollar is that you can do things with it. Between export controls, currency controls, laws on foreign ownership, etc, china can pay me all the RMB in the world. I still can’t do a whole lot with it.
https://www.atlanticcouncil.org/blogs/econographics/what-to-...
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Maybe unsaid but the idea that Congress can create an organization that is not executed by the executive is the issue
Isn't that the entire point of congress? Otherwise why not just have an all powerful president and do away with the houses
The US century is already over. It's just that a lot of US citizens don't see that. De-dollarization will happen when one is a traitor to it's allies
Indeed. People are actively trying to repair something which cannot be fixed. Now that the US century is over, the only way forward is for the US to use present military power as a cudgel. Given that the multipolar world is nigh, the only path forward is through. If America and her erstwhile allies are no longer aligned, then any attempt by America to repair this is doomed. Consequently, Trump’s approach is the only…
It's the DoD.
Prior to Trump's actions, the American-led "world order" seemed to work, even if we couldn't get China to agree to a "Bretton Woods 2.0".
Biden tried diplomacy with the EU. He tried to get them to agree to a renewed US-led world order, but it wasn't working. The EU decided to play the US and China against each other to improve its own standing, which is why the US is now moving away from the EU.
I think the US could seriously pull out of NATO and leave the EU to fend off Russia by itself. It'll have to start spending enormous tax dollars on defense and war.
Meanwhile, if the world is truly becoming multi-polar, then the US wants to consolidate power in its own hemisphere. This is why there's all the rhetoric and action on Venezuela, Cuba, Greenland, Canada, etc. The US will keep Chinese ports, basing, and trade completely out and secure the trade routes for when the Arctic opens up. It recently changed control over the Panama Canal, and the DoD is dead serious about taking Greenland and maintaining complete hemispheric control.
With whatever energy the US has left, it will dedicate to Asia. It will strengthen alliances and project power there instead of dealing with Europe.
The world is going to be a much more violent place without hegemony. Free trade doesn't exist in that type of world. The US realizes this and is playing 50 years ahead. None of the nice words matter when the energy, trade, and economic lines are redrawn.
People like to say the US is led by lawyers and China is led by scientists and engineers. This is wrong. The US is led by war generals and intelligence. The career DoD folks are the ones impressing upon the administration to make these moves.
To be clear: I hate this. I loved the world I grew up in. I think we're headed for a violent world that could easily erupt into war. I don't like it.
It's not losing it so much as that it is being destroyed on purpose.
The decline has been gradual. The dollar's portion of global forex reserves has fallen from over 70% in the late 1990s to around 60%. The Supreme Court's ruling on Fed independency is to be watched.
De-dollarization is one of those things economists love to talk about. The chance of the dollar losing its reserve currency status is slim-to-none. No matter how bizarre the US is, nobody trusts the Chinese Communist Party (CPP). And although the US can manipulate the value of the dollar, its tools are limited compared to the CPP. Plus, the US is still the only country that's willing and able to prop up the world fin…
The US century is already over. It's just that a lot of US citizens don't see that. De-dollarization will happen when one is a traitor to it's allies
However, the US is more of a "killer" nowadays. The "killer" is usually more efficient than the "giver", because people value their life more than their wallet. So that's why I think she still has some time left. I don't blame it on Trump though. Being a "giver" is a lot more trouble than being a "killer", and I think the US elites gradually rolled back from the role of "giver" since many years ago. Trump is just here to remind other states that the US can and will be a very efficient killer.
And this is probably the most dangerous time for other states because she cannot afford to lose.
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Why did the fed raise interest rates? To soak up some of that cash. It was too slow, but this is exactly the sound money policy that everyone expects. You loosen cash (what you mistakenly call printing money), when you need investment, and tighten cash when inflation and risk taking is out of control.
a sound response to some of the worst fed decision making in US history. they essentially ruined the housing market, priced out a generation of younger buyers, which is now crushing fertility rates, savings, and more
It's not losing it so much as that it is being destroyed on purpose.
The decline has been gradual. The dollar's portion of global forex reserves has fallen from over 70% in the late 1990s to around 60%. The Supreme Court's ruling on Fed independency is to be watched.