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Loosing $2 trillion wars has consequences. Keep in mind up to this point the US could pretty much print as many dollars as it wanted. And the world would absor

Loosing $2 trillion wars has consequences. Keep in mind up to this point the US could pretty much print as many dollars as it wanted. And the world would absorb it, because it needed US dollars to trade. This is becoming less and less the case. Countries trade with China now, in Euros in Europe and also directly between each other. So some of those extra dollars are just coming back into the US economy, with no external takers. So inflation. Keep in mind that Afghanistan bankrupted and accelerated the collapse of the Soviet Union. The US is on shaky ground. While China stood on the side, and is now the clear winner, building a pipeline directly to Iran through Afghanistan.

bumby 5y ago
>The US is on shaky ground. If Treasury rates are an indicator, this doesn’t seem to be the conclusion of the market. As of 8/13, a 10-year note is listed at 1.29% indicating a fairly high level of confidence. If those rates start approaching junk bond returns, then I’d say your claim has merit
- dukeofdoom 5y ago
  I think rich people are last to notice. Regular Americans are drowning in debt. Cities are filled with homeless now, like never before.
gruez 5y ago
>Loosing $2 trillion wars has consequences Are you saying that the iraq/afghanistan war caused the inflation we're seeing today?
- dukeofdoom 5y ago
  I'm saying a string of ill fought wars will bankrupt an empire, not just cause inflation. Wars are expensive, governments need to print money to finance them. Dollars need to be backed by economy and taxes.
  - imtringued 5y ago
    >Dollars need to be backed by economy and taxes. The funny part is that USD only have to be backed by the world economy. A war in Afghanistan certainly didn't help it become an important part of the world economy and therefore it didn't help the USD.
- imtringued 5y ago
  I doubt it but lets imagine an alternate reality where Afghanistan started becoming an important trade partner to reduce dependence on China. We definitively prevented that alternate future from happening so there is a non zero impact on inflation but it's irrelevant in the grand scheme of things. It certainly doesn't explain 5% or higher inflation.

bumby 5y ago

>The US is on shaky ground. If Treasury rates are an indicator, this doesn’t seem to be the conclusion of the market. As of 8/13, a 10-year note is listed at 1.29% indicating a fairly high level of confidence. If those rates start approaching junk bond returns, then I’d say your claim has merit

dukeofdoom 5y ago
I think rich people are last to notice. Regular Americans are drowning in debt. Cities are filled with homeless now, like never before.

gruez 5y ago

>Loosing $2 trillion wars has consequences Are you saying that the iraq/afghanistan war caused the inflation we're seeing today?

dukeofdoom 5y ago
I'm saying a string of ill fought wars will bankrupt an empire, not just cause inflation. Wars are expensive, governments need to print money to finance them. Dollars need to be backed by economy and taxes.
- imtringued 5y ago
  >Dollars need to be backed by economy and taxes. The funny part is that USD only have to be backed by the world economy. A war in Afghanistan certainly didn't help it become an important part of the world economy and therefore it didn't help the USD.
imtringued 5y ago
I doubt it but lets imagine an alternate reality where Afghanistan started becoming an important trade partner to reduce dependence on China. We definitively prevented that alternate future from happening so there is a non zero impact on inflation but it's irrelevant in the grand scheme of things. It certainly doesn't explain 5% or higher inflation.