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Gold overtakes U.S. Treasuries as the largest foreign reserve asset

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261–270 of 270 posts

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#261
post #77

Earlier quoted context omitted.

> Some abstract quasi moralistic reason that things should be tougher so we compete harder feels a little out of touch. I don't see how any of those descriptions fit what I've said. Also, note, things should indeed not be tougher. A consequence of our economy being so focused on financialization of overseas productivity is that the wealth created from that activity tends to be much more concentrated than that produce…

I think the way you phrased your point was quasi moralistic - perhaps not intentionally. However I’d note that the economic theory of comparative advantage says the rational move is countries and states and cities specialize in what they have a comparative advantage in and by doing so the entire system becomes optimal. Everyone trying to be self sufficient within themselves, and the absurdity of the trade imbalance a…

> However I’d note that the economic theory of comparative advantage says the rational move is countries and states and cities specialize in what they have a comparative advantage in and by doing so the entire system becomes optimal.

The basis of trade barriers of any kind is necessarily against an optimal global economy. I get that. Its the default free trade argument. It's a bit of a spherical-cow argument however, as the moment a country implements any kind of market regulation, free trade becomes arbitration around those regulations. So, unless the entire world becomes libertarian, that argument doesn't hold water.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#262
post #254

Earlier quoted context omitted.

Why do laborers have to work for the right to live when capitalists only have to provide capital and are always assumed to be worthy? Capital and labor is combined to produce new capital. Yet we only expect labor to prove their worth. We're always holding labor's feet to the fire and killing them through policy that allows their poverty by assuming they are lazy. There is basically zero consequence for capitalists wh…

> Why do laborers have to work for the right to live I don't know why, but this is sort of the definition of a laborer, no? Someone who labors. People who live on welfare are – by definition – not laborers. That was my whole point: "ending welfare" is not "an attack on labor", it's an attack on non-labor.

I reject your definition of welfare. You're thinking far too narrowly about the benefit to society by taking care of your citizens' needs.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#263
post #254

Earlier quoted context omitted.

> Why do laborers have to work for the right to live I don't know why, but this is sort of the definition of a laborer, no? Someone who labors. People who live on welfare are – by definition – not laborers. That was my whole point: "ending welfare" is not "an attack on labor", it's an attack on non-labor.

I reject your definition of welfare. You're thinking far too narrowly about the benefit to society by taking care of your citizens' needs.

What is your definition of welfare? Generally caring how the citizens are doing? I believe governments usually don't. There's too much politics for that.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#264

Earlier quoted context omitted.

gibberish

Nope, just economic history. People think the "new thing" is new...this has happened many times before. Macro tourists come in and think ten minutes with ChatGPT has turned them into an economist. Basic knowledge.

What's your point tho

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#265
post #250
post #246

Earlier quoted context omitted.

Well we know the US doesn't have a dictator, so that's not a good example. This all sounds incredibly hand wavey "oh, they just do things that benefit themselves but tank the US economy". From what I've seen all the oligarchs in the US got rich when the economy was doing well. Do you have a specific example of someone who got rich by "tanking the US economy"?

> we know the US doesn't have a dictator Even most dictatorships don't "have a dictator". They have a "great leader" that coincidentally gets voted in again and again, for whom constitutions are amended, and who happens to have his own "revolutionary" irregular militias, not-so-secret police grabbing people on the streets in plainclothes (or worse), a subservient parliament rubber-stamping decrees, etc etc. Even with…

No, actually those countries do call them dictators - I’m not aware of any similar to what you’ve described.

A very few select oligarchs got rich during the European currency crisis - and anybody oligarchs got hammered.

How do the oligarchs decide? Do they meet in secret?

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#266

The events of the last year certainly have a role to play, but the overall effect is just the result of trendlines that have been in play for quite a while. Here's a world gold council (i know...) review/survey of central banks gold holdings from mid 2025 ( https://www.gold.org/goldhub/research/central-bank-gold-rese... ). It notes that gold purchases (by mass) have been elevated going back to ~2023. Gold prices have…

I think the initial catalyst for this was when the US/Biden arbitrarily removed Russia from SWIFT post Ukraine invasion. Whether people agreed or disagreed with that decision isn't really material to the discussion, the fact remained that the west decided to remove Russia and they basically had no recourse. And given the, well, unpredictable nature of the current US executive I think it's kinda kicked other countries into overdrive.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#267
post #259

Earlier quoted context omitted.

Averages tell us the general availability of wealth. To give you some perspective, most European countries are poorer than the poorest U.S. state, which is Mississippi. There just aren't as many high-paying jobs. And these figures encompass everything, including what the government spends on health care and welfare programs and education. So Europeans as a whole get much less per capita from both government and priva…

Avetage tells nothing you should use median or a graph.

Median data is better, yes, but it's harder to get. Average correlates quite strongly with median.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#268
post #260

Earlier quoted context omitted.

Even if US companies only had the US market, they'd be massive — Google gets ~50% of its revenue from the US alone, Amazon over 60% from North America, and most other Big Tech is in that same range. The US market by itself is plenty huge. And the EU provides 20-30% of US Big Tech revenue. Even losing all of that (very unlikely even under protectionist policies), US tech companies would be doing well, with 70-80% of t…

You write as if Trump did not put tariffs on european exports to US. Europe could put same tariffs on USA services and the margins in USA will disappear It's like you see but ignore what the other poster said. Europe allowed US services to grow, but it can stop them too. Same way China does. Funny how you write about 50% market share being USA, when the other poster writes about the other part. That might dissappear.

The EU did retaliate to Trump's tariffs with its own.

Anyway, I wasn't making a point about recent developments. I was talking about more long-term trends showing that why the US has outpaced EU in economic growth.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#269

Earlier quoted context omitted.

After the US Dollar with Luke Gromen https://youtu.be/OOW-oSruO80?t=4072 Luke's key point lands at about 1:08:27–1:08:33, where he says that instead of selling treasuries outright (which would draw attention from the American embassy), China can use them as collateral — and the American banks are happy to take it. He then lists what China gets in return: "I'll take Pereus. I'll take that oil field. I'll take that cop…

Aren't these things just legal fictions that only exist because/as long as the US government allows it?

Yes, after Ukraine war started, there are instances of companies's stakes being sold for 1$ only. So yes it is all legal fiction but we have to operate according to that fiction in peacetime world order setup we are in.

Re: Gold overtakes U.S. Treasuries as the largest foreign reserve asset

#270

Earlier quoted context omitted.

The fact that he has done countless things that are harmful to the US and not a single thing that is in the country's best interests tells me all I need to know. Either he's aligned with an enemy or he just hates the country and wants to destroy it.

Or he and his associates can make a lot of money out of crashing the economy and buying up assets for pennies. Never attribute to malice that which is adequately explained by greed.

>Never attribute to malice that which is adequately explained by greed.

Not considering greed a blatant demonstration of malice has to be the single dumbest thing our society has normalized.

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