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USD share as global reserve currency drops to lowest since 1994

wolfstreet.com

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Re: USD share as global reserve currency drops to lowest since 1994

#251

Post by throw0101c »

cjbgkagh wrote: post #178
throw0101c wrote: post #168

Earlier quoted context omitted.

> I’m pretty sure no-one has argued that a gold standard would prevent economic disasters. That sounds like a straw man. My understanding is that there would be more of them but the individual and cumulative impact would be far less. Contrary to popular opinion, the historical record shows that gold does not actually bring price stability; see "Why the Gold Standard Is the World's Worst Economic Idea, in 2 Charts": *…

Many things work just fine right until they stop working, our current strategy of blowing ever bigger economic bubbles has worked for a long time and I expect it will continue for long time. It has the very stable property of enriching the already wealthy. But it will not last forever and I do expect to see the end of it within my lifetime. It is this calamity that I'm interested in diminishing and it is on this basi…

> Many things work just fine right until they stop working, our current strategy of blowing ever bigger economic bubbles has worked for a long time and I expect it will continue for long time. It has the very stable property of enriching the already wealthy.

The enriching of the already-wealthy is happening because of non-progressive policies (taxes, and others). Plenty of countries have fiat currencies and independent central banks, and yet don't have inequality rates like that of US currently has.

In fact, the US used to not have inequality rates that the US currently has. This is a phenomenon that has a fairly definitive starting point, with particular policies that (US) society has "accepted" and can 'simply' choose to start rejecting:

* https://en.wikipedia.org/wiki/Friedman_doctrine

The current US rates are the same as during the Gilded Age, and just like they were reversed post-GA, they could also be reversed now.

Re: USD share as global reserve currency drops to lowest since 1994

#252

Post by coldtea »

The US worked hard for this outcome. After stupidly weaponizing the financial system, and stupidly outsourcing their industrial capacity and basing GDP progress on bubbles, there's no wondering why countries and global players wont trust their money to the dollar...

Re: USD share as global reserve currency drops to lowest since 1994

#253

Post by coldtea »

bdangubic wrote: post #182
toomuchtodo wrote: post #179

Earlier quoted context omitted.

I think it speaks volumes that Buffet has nowhere else to put that ~$382B in cash; that speaks more about current asset valuations ("everything bubble" [1]) more than that US cash is trash. If assets classes are inflated, US treasuries are no longer a safe haven, gold and other precious metals are overbought, where do you go? There is no immediate answer, imho, but only a slow burn as the world reconfigures around th…

damn shit is really bad, sky is failing, bubbles are bursting… any other clickbait I need to read up on before I go spend the last of the good days with my kid…? coolest thing about us in the 50’s is that we’ve seen and read this shit many times before and don’t fall the “bubble du jour” or “shit’s really bad this time…” - especially readers here on HN, bubbles be bursting for yeeeears now, recession is coming, crash…

If you're in your 50s you should have at least noticed that things have gotten progressively worse, if not for you (e.g. working in FAANG and getting by better than ever) for the majority in all kinds of ways in those 50 years: housing costs, healthcare, jobs, public debt, private debt, it's a huge list.

So, yeah, those "shit is really bad, sky is failing, bubbles are bursting" shit has been consistently right all those years, and it will get worse.

Of course some people only grok that things are bad when it happens to them personally. 80% of the people could be coughing blood outside their door, but as long as they get their bonuses, all is fine, as far as they're concerned.

Re: USD share as global reserve currency drops to lowest since 1994

#255

Post by grugagag »

hshdhdhj4444 wrote: post #231
bdangubic wrote: post #190

Earlier quoted context omitted.

[flagged]

Right, because you were predicting chstgpt in 2018… Amazing how you are quite literally proving you got lucky and yet you seem to believe that you’re hot shit.

Remember that before chatgpt there was a crypto craze which created demand for nvidia

Re: USD share as global reserve currency drops to lowest since 1994

#256

Post by daedrdev »

MisterMower wrote: post #200
laterium wrote: post #120

Earlier quoted context omitted.

Being able to conduct monetary policy is valuable, even if it can be misused. Otherwise all other countries would just be using USD.

Conduct monetary policy? I prefer the phrase “tax without consent” instead of that euphemism.

Yes, inflationary policy is a tax. But its better than the alternative, where the commodity cant keep up with the economy, and that money goes to the holders of the commodity instead with nobody in control

Re: USD share as global reserve currency drops to lowest since 1994

#257

Post by immibis »

OutOfHere wrote: post #192
bethekidyouwant wrote: post #171

Earlier quoted context omitted.

An economy that can be debt based is going to out perform yours nine years out of 10

Sure, but it will be gone after a hundred years of compounded debt.

A system that lasts a hundred years before failing is a successful system. This reminds me of comments about bankrupt companies that made massive profits for 10 years, calling them failures. That's a success and the comment is sour grapes.

Re: USD share as global reserve currency drops to lowest since 1994

#258

Post by immibis »

MisterMower wrote: post #203
daedrdev wrote: post #36

Earlier quoted context omitted.

If your economy grows by 100 percent, and the supply of gold grows by 10 percent, its a massive problem

Why is that a problem?

Look at Bitcoin to see an example. It's a gambling game that is relatively useless to do transactions with.

Re: USD share as global reserve currency drops to lowest since 1994

#259

Post by bdangubic »

jazzyjackson wrote: post #223
bdangubic wrote: post #190

Earlier quoted context omitted.

[flagged]

People have winning streaks in casinos too.

I would love to find a "casino winning streak" spanning 6+ years :) while you and other people talk about bubbles and gambling the rest of us are getting rich and getting ready to retire... it is what it is...

Re: USD share as global reserve currency drops to lowest since 1994

#260

Post by breakds »

bdangubic wrote: post #182
toomuchtodo wrote: post #179

Earlier quoted context omitted.

I think it speaks volumes that Buffet has nowhere else to put that ~$382B in cash; that speaks more about current asset valuations ("everything bubble" [1]) more than that US cash is trash. If assets classes are inflated, US treasuries are no longer a safe haven, gold and other precious metals are overbought, where do you go? There is no immediate answer, imho, but only a slow burn as the world reconfigures around th…

damn shit is really bad, sky is failing, bubbles are bursting… any other clickbait I need to read up on before I go spend the last of the good days with my kid…? coolest thing about us in the 50’s is that we’ve seen and read this shit many times before and don’t fall the “bubble du jour” or “shit’s really bad this time…” - especially readers here on HN, bubbles be bursting for yeeeears now, recession is coming, crash…

People born in different eras often develop different worldviews by the time they reach their 50s. Not everyone is lucky enough to be born in the "right time".
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