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how does that work exactly?
by joshfraser 9y ago
how does that work exactly?
- dingo_bat 9y agoSuppose there is an increase in oil prices. That means the US now has to spend more to satisfy domestic demand. That invariably results in devaluation of the dollar. If this becomes extreme enough, US boots march into the middle east and "make things right" again. Another example. Suppose a bunch of terrorists crash a couple of planes into a symbol of American economic strength. Again, US drones and boots on the ground would fuck up whatever corner of the earth that needs to be obliterated in order to restore people's faith. These two are very direct actions, but most influences are far more subtle. What happens if China tries to manipulate US currency using its vast dollar reserves? It won't, because within hours a couple of aircraft carriers would show up inside Chinese sea waters. Just the existence of capability is enough to deter China.
- joshfraser 9y agoWhat if the American people wake up to the fact that the dollar is leveraged beyond reason? And realize that it's all a house of cards? And that military doesn't think the dollars they're paid with are worth anything?