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The prospect for America's future is not good. America's golden years were right after WW2, with the creation of the Bretton Woods system. But since the Nixon
by partycoder 9y ago
The prospect for America's future is not good.
America's golden years were right after WW2, with the creation of the Bretton Woods system. But since the Nixon shock, the US dollar depends on exclusive deals to retain a relative value to other currencies. e.g: convincing oil exporting countries to only sell their oil in dollars and buying US treasury bonds.
But as these deals become redundant (e.g: as oil becomes less necessary), the US dollar will lose value, and so will things valued in dollars (e.g: savings, wages, etc).
Unless the US finds another way to keep the US dollar afloat, printing more dollars to subsidize the economy will stop helping and the US will lose its privileged position in the world, which this generation takes for granted.