Posted on 04/06/2023 8:02:15 AM PDT by dynachrome
Loss of reserve currency status would "heighten the contradictions" as the Leninists used to say.
He’s controlled opposition.
I do not understand what the issue is here.
As I write this, the US Dollar is trading at 101.49, against a basket of foreign currencies.
Since 1985, almost forty years ago, the US Dollar has traded BELOW 101.49 about ninety percent of the time.
Exactly what damage will be done to the USA economy, or to the USD, if it is no longer the international reserve currency?
Because, we finance our towering debt by selling US dollars. If the US dollar is not boss, no one will be buying. Being the reserve currency means that trade worldwide is basically carried out in US dollars. If we have to buy Saudi oil and German cars with yuan we’ll be paying a lot more.
Less than 25% of our debt is held by foreign governments or foreign investors - regardless, they are still paying more for USDs than they paid 90% of the time in previous years.
The USD is the reserve currency because we buy more foreign goods than any other country in the world, we have never defaulted on our debts, and our currency trades 24-7-365 in every country in the world.
The price of the yuan is pegged to the USD, and the monetary flow of the yuan is strictly controlled by the Chinese Communist Party.
The USD might be worthless, but it is worth more than all the other currencies in the world!
It is a piece of paper with ink on it.
Its value is defined by the imagination of counterparties. Whimsy. This is not something to rely on.
Now there is a dumb idea.
It is a piece of paper with ink on it.Let us know when you burn all yours. No fair trading them for bitcoin or groceries or you would have to admit they have value.
Maybe he is trading his dollars for bitcoin, gold, rubles, rands or reals. If so, it shows that he has no faith in the dollar, and he is moving on to other currencies and investments. Persons who do not belive the dollar is strong should follow their theories and use their dollars to buy bitcoin, gold, pesos, reals, rands or tulips.
As for the theoretical basket of gold based currencies, how is that basket going to work when the Mexican or Brazilian economies hit a downturn? Being that the U.S. government holds gold reserves that are far larger than any of those countries mentioned, how are those economies going to expand?
Suppose the basket of gold backed currencies did exist, what impact would that have on the United States government who has the most gold?
Who carries money these days. It is all digits on a computer today.
I like how he notes that people who take longterm economic repercussions into account are called Putin Stooges.
The Suicide Sanctions are eviscerating Western economies and driving BRICS countries closer together.
Of course they have value. As I said, the value is defined by imagination of counterparties.
keeping your head in the sand i see
may happen slowly or could happen very fast US dollar will no longer be the reserve currency for the world
The last War we EVER Fight.
Will we see a segment on Tucker going to the bank and cashing in all his U.S. dollars for Russian rubles?
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I don’t know the details of Tucker’s life. People with money take into consideration the likely devaluation of the dollar. For example, they might have a preference to own land over dollars, because it will keep its value. If they didn’t expect the dollar to devaluate, they would invest differently. I expect Tucker, as a person of common sense, to do the same. You seem to assume he doesn’t own any gold or silver.
Evaluate the dollar over decades taking into account what you can buy with it, such as land and food.
We can’t even support-by proxies- a sustained operation in the Ukraine..
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