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Consider that USD has, for decades, been the world trade currency (the reality is a little more complicated today with the IMF). Basically inflation of USD is d

Consider that USD has, for decades, been the world trade currency (the reality is a little more complicated today with the IMF). Basically inflation of USD is diluted across the world because other countries (until recently) needed USD to trade with many other countries. We can get into conspiracy theory here a bit by noticing that Qaddafi wanted to create a common trade currency for Africa. Saddam Hussein quit trading in USD in favor of EUR. Russian and China agreed to exclude USD from their direct trade in 2014. Notice a pattern? Countries are recognizing that the USD is inflated and trying to move away from it. Those that are small, get invaded. Those that are large get vilified. All that to say that the US does have a blank check as long as it can dilute the inflation wide enough. Such a situation is uniquely different from the individual countries that only inflate internally.

true_religion 9y ago
I think it's the reverse, countries that are villified don't want to use the USD.
stcredzero 9y ago
Basically inflation of USD is diluted across the world because other countries (until recently) needed USD to trade with many other countries. Normally, the costs of Hardin's Tragedy of the Commons are distributed among the group. In the case of US Senators and Congressmen, if what you say is true, the costs are outsourced to the rest of the world.
bbatha 9y ago
> We can get into conspiracy theory here a bit by noticing that Qaddafi wanted to create a common trade currency for Africa. Saddam Hussein quit trading in USD in favor of EUR. Russian and China agreed to exclude USD from their direct trade in 2014. Aside from China, which has a currency large enough to become a trade concurrency, these countries were all strategic enemies well before these moves. The decoupling of the USD seems more of geopolitical strategy than economic risk for these countries.

true_religion 9y ago

I think it's the reverse, countries that are villified don't want to use the USD.

stcredzero 9y ago

Basically inflation of USD is diluted across the world because other countries (until recently) needed USD to trade with many other countries. Normally, the costs of Hardin's Tragedy of the Commons are distributed among the group. In the case of US Senators and Congressmen, if what you say is true, the costs are outsourced to the rest of the world.

bbatha 9y ago

> We can get into conspiracy theory here a bit by noticing that Qaddafi wanted to create a common trade currency for Africa. Saddam Hussein quit trading in USD in favor of EUR. Russian and China agreed to exclude USD from their direct trade in 2014. Aside from China, which has a currency large enough to become a trade concurrency, these countries were all strategic enemies well before these moves. The decoupling of the USD seems more of geopolitical strategy than economic risk for these countries.