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USD share as global reserve currency drops to lowest since 1994

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

#271

Post by cjbgkagh »

throw0101c wrote: post #251
cjbgkagh wrote: post #178

Earlier quoted context omitted.

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 independe…

The US is a completely different country compared to what it was 100 years ago, or even 50 years ago, and economic policy is not the only thing that has changed.

It appears that you see ‘progressive solutions’ as an answer which I would expect to arrive in the form of tax normalization which alongside monetary inflation constitutes the much coveted wealth tax. I am in disagreement with progressives that this would result in a decrease of inequality, for one the state will be completely reliant on the wealth of the wealthy increasing, as opposed to the income of the middle class increasing. I see inflation as a regressive tax, the poor will pay a higher percentage in tax but a lower in relative terms due to the increase in inequality caused.

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

#272

Post by supertrope »

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?

If it's more profitable to keep your money under a mattress than to make things, provide services, or provide loans, the economy will tilt toward hoarding cash instead of more productive activities.

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

#273

Post by somenameforme »

daedrdev wrote: post #256
MisterMower wrote: post #200

Earlier quoted context omitted.

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

Can you rephrase that? Because I think you have it exactly backwards here unless I'm misunderstanding you.

In inflationary systems money becomes worth less, but 'things' tend to hold their value. This is precisely why the very wealthy are accumulating massive amounts of 'things' - it creates profit out of nothing thanks to inflation. So you're most incentivized to buy up as much as you possibly can, and then rent access to it. This is precisely how you get the WEF saying things like, 'You will own nothing, and be happy.'

By contrast in a deflationary system the value of things tends to decrease over time, all other things being equal. That is to say that obviously things like land can still increase in value over time if demand, in an area, significantly outpaces supply, but relative to inflationary systems - the 'natural' direction for prices is down. And so in this system there's much less motivation to hoard things. Of course in exchange there's a far greater motivation to hoard money, but at least that's fairly equitable. Right now lower classes simply can't avoid paying the inflation tax, whereas the wealthy not only avoid paying it, but directly profit off of it.

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

#274

Post by bdangubic »

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.

[dead]

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

#275

Post by bdangubic »

disgruntledphd2 wrote: post #269
grugagag wrote: post #255

Earlier quoted context omitted.

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

And big tech have been buying loads of GPUs for like a decade at this point.

maybe if another decade goes by it'll be enough to convince people that just perhaps (to steal this from someone) while every one is digging for gold you want to be the one selling shovels :)

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

#276

Post by bdangubic »

refurb wrote: post #212
bdangubic wrote: post #182

Earlier quoted context omitted.

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…

Yup. It’s wild seeing the internet chat about the latest flavor of the week of “the sky is falling”. Try going back 1 year and look at those headlines. What you’ll find seem silly looking back.

this depends on which "headlines" you are looking at... if you are right/right-leaning your headlines from a year ago are much worse than those today, sky is falling, biden opened borders, immigrants are murdering 1/2 of the population, economy is shit, eggs are $20/piece...

a year later, if you are left/left-leaning your headlines are "sky is falling, democracy is dying, corruption is through the roof, the country is hanging on by a thread..." too funny to observe what has become of America...

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

#277

Post by detourdog »

JumpCrisscross wrote: post #224
rep_movsd wrote: post #217

Earlier quoted context omitted.

By forcing oil to be bought with dollars, the USD was pegged to oil demand, especially from developing nations whose consumption was growing. Also SWIFT being a means of control of movement of funds.

> forcing oil to be bought with dollars, the USD was pegged to oil demand, especially from developing nations whose consumption was growing If you give me one source, I'll break down why this is wrong. (In case there isn't one, the U.S. dollar was never pegged to oil demand [whatever that means]. And nothing about petrodollar recycling thought about developing nations for one second.)

Hasn’t all recent oil purchases been settled using USD. My understanding is that most countries buy US treasuries to maintain US credit ratings and to settle global trade debts.

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

#278

Post by estimator7292 »

mvkel wrote: post #21

Whenever I see headlines like this, I ask: what happened in 1994? It was post-Cold War and central banks were trimming USD reserves to test alternatives. Then, crises hit (tequila, Asian, Russian, dot com) and the world reconsolidated around USD, thanks to the immense strength of the Federal Reserve and IMF. Similarly now, reserve share is falling as countries hedge sanctions and geopolitics, yet dollar usage in trad…

I'm not sure I'd call our current geopolitical status stable in any way. Multiple major wars, historic superpowers losing their absolute minds, fascism rising, even discontent in the EU.

This is an artifact of the instability of our current times. USD reserves are falling because the US is no longer a stable country offering a stable currency. Plus we keep demanding more tarriffs in effect reducing the real value of a US dollar.

Stability would appear as more confidence in USD, not less.

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

#279

Post by thoughtstheseus »

coldtea wrote: post #252

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...

Some dude at Treasury even wrote a book about. Juan Zarate, author of Treasury's War: The Unleashing of a New Era of Financial Warfare.

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

#280

Post by wakawaka28 »

throw0101c wrote: post #248
wakawaka28 wrote: post #218

Earlier quoted context omitted.

Price stability is overrated. Prices must change according to scarcity. Letting the government print money any time prices start to fall is literally letting the government profit off your back. It makes accounting easier, but it destroys market information like "Supply of goods is catching up to demand, find something better to produce".

> Price stability is overrated. Tell that to Biden/Harris. Dissatisfaction about prices helped get Trump elected (and now is causing him troubles with popularity as well). > Letting the government print money any time prices start to fall is literally letting the government profit off your back. The vast, vast majority of money that is "printed" is created by private banks through credit creation: * https://www.banko…

You are preaching to the choir, for the most part. People just got brainwashed into expecting prices to be "stable" but what is really happening is the price of money is being manipulated for various reasons.

Credit is a very thorny issue. Politicians and banks have promised people impossibly good and contradictory outcomes.

>And the money supply that is created by government(-ish) institutions is by central banks, which—in modern times—are generally operated independently from the government

In all cases the independence is an illusion. Conflicts over policy are manufactured to make the government appear more frugal than it is. Every fiat currency ever has gone to zero.

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