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There have been multiple pauses of music and it hasn't really done much to the USD. The argument that the music will stop requires there to be a new conductor a
by icelancer 8y ago
There have been multiple pauses of music and it hasn't really done much to the USD. The argument that the music will stop requires there to be a new conductor and financial instrument that can replace the USD and the role that the United States plays in the world economy. The EUR was the closest thing we've had in my lifetime, if you don't count all the ridiculous goldbug rushes we've had in the last five decades - the same people saying the exact same thing you are, who have been perpetually wrong when compared to any other type of financial instrument such as the S&P500 or more recently, VTI.
I am no fan of carrying enormous amounts of debt. I critically disagree with the United States economic and fiscal policies of the last twenty years, including most quantitative easing initiatives.
But if you think the AAA credit rating is somehow fake or corrupt, no metric-driven analysis that even remotely resembles fairness would agree with you. Only theories like "the music will stop" do.
- suff 8y agoThe phrase, "cleanest shirt in the laundry basket" comes to mind. Relatively speaking, the US is in a much better place than others, even if it isn't perfect.
- Tsubasachan 8y agoThere are countries in the EU who manage budget surpluses. Its why the EU can bail out Greece and soon Italy. Its not impossible.
- JohnJamesRambo 8y agoCryptocurrency will replace the dollar. A world currency free of any nation’s policies is too attractive. Transferring all your wealth to it allows the rich to escape all these massive debts that have been accumulated by governments and the financial system. This flip will be quite violent as the money moves from one sector to the other and is called hyperbitcoinization, although I don’t believe bitcoin will necessarily be the actual coin used.