3 ms·
I'll eat my hat, Simon Black, if "the Zimbabwe scenario occurs" or Texas attempts to secede because we're all desperate for their oil to sell to - well, who? I
by w0de0 5y ago
I'll eat my hat, Simon Black, if "the Zimbabwe scenario occurs" or Texas attempts to secede because we're all desperate for their oil to sell to - well, who? I asked the Texas question because it is a bad question - because a positive answer indicates to me a distorted sense of the composition of American society.
America's wealth isn't the dollar's reserve currency status, it isn't its GDP (or conversely the debt-to-GDP measure), it is ~400 million humans and the natural wealth of the richest part of North America, combined with the easy geopolitical security of two vast oceans and two good friends. Our debt is made easier because of the strength of the dollar, just as the British debt was before the Suez crisis. But it is secured by our vast real estate, our technologically sophisticated economy, and, like all national debts, by the easy assumption of future growth in population and economy (this growth being the main reason the national debt is not analogous to household debt).
- simonblack 5y agoOur debt is made easier because of the strength of the dollar, just as the British debt was before the Suez crisis. The Dollar is only strong because there hasn't been an event like Britain's Suez Crisis YET. But the US Dollar is a 'dead man walking' just like the British Pound was a 'dead man walking' before Suez. Both the Pound then and the Dollar now, had and have only 'belief' holding them up. The economic fundamentals behind both of them being horrifically bad. But keep believing what you believe. It won't change the outcome.
- w0de0 5y ago> But keep believing what you believe. It won't change the outcome. I'm happily considering your argument - holding up a "The End is Nigh" sign does not improve it.