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The normalcy bias of people combined with the pure arrogant hubris that the USD can not collapse will lead USD collapse The people in charge of the money belie

by syshum 5y ago

The normalcy bias of people combined with the pure arrogant hubris that the USD can not collapse will lead USD collapse The people in charge of the money believe the world would not dare change to something else. Bullshit The history of the world shows empires collapse. To believe the US is somehow immune is moronic Having our levels of debt combined with unrestricted spending, combined with currency minplulation / creation is 3 strikes The world has already sent a singal we have too much debt and too much spending as they have stopped buying our debt so the fed has to buy it all with money created from thin air It also ironic you use monarchy anology here. I am sure you are correct that the king also thought they could do what ever they want right up until the peasants chopped the king's head off in revolution. As the blade came down I am sure he was thinking "this is not possible for i am the king "

bellyfullofbac 5y ago
At this point a USD collapse is a collapse of the entire planet's economic system. (IMO, I could be wrong.) It could collapse, but it will take the whole world down with it. To use the monarchy analogy again, yeah the emperor might be naked, but as long as we pretend he isn't, we'll continue to have order. Even China isn't interested in a bankrupt USA/a crashed dollar, because it wants to keep its people fed, and they get fed when they can toil in the factories making cheap shit for Walmart...
- syshum 5y ago
  While none wants the dollar to collapse they are also not willing to see their own economies suffer at the hand of irresponsible people in the fed and Treasury. It is pure hubris to believe the it is impossible for the world to get off the dollar. Hell their have been talks about it in a orderly way by many nations for a long time. OPEC is one of the leading reason for US dollar dominance. If OPEC starts trading oil in something other then USD well we here in the us are going to have a bad time.
throw0101a 5y ago
> The normalcy bias of people combined with the pure arrogant hubris that the USD can not collapse will lead USD collapse Reserve currencies do not "collapse", they get replaced. The GBP didn't collapse for example: over the course of decades the USD came up and for many years they were used equally. So if the USD is to be replaced, the obvious question is: with what? EUR? CNY/RMB? JPY? Other? A mix? For a paper on possible multi-currencies, see Eichengreen 2014: * https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2580651 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2580651 For a good historical overview see How global currencies work past, present, and future by Eichengreen, Chitu, Mehl. > The history of the world shows empires collapse. To believe the US is somehow immune is moronic The US is not an empire. It is a hegemony: it simply exerts (exerted?) influence because of the size of its economy relative to everyone else, and it was willing to spend a whole bunch of money to basically keep the peace. > The world has already sent a singal we have too much debt and too much spending as they have stopped buying our debt so the fed has to buy it all with money created from thin air What signal would that be? The US Treasury sells bonds to interested buyers, and the Fed then gets the bonds on the secondary market. No one has stopped buying US bonds. Further, the purchase are done with US Fed reserves, which are not "real" money as they do not enter the economy and simply sit in the accounts that institutions have at the Fed.
- syshum 5y ago
  >>Further, the purchase are done with US Fed reserves, which are not "real" money as they do not enter the economy and simply sit in the accounts that institutions have at the Fed. I am really tried of this lie being repeated over and over again, the money enters the economy at the point in which the Federal Government spends the money it gets from selling the debt. The Federal Reserve can not buy US Debt and claim that money never enters the economy because the US FEDERAL GOVERNMENT SPENDS THE MONEY. Sure the Fed itself does not spend it, but just because it it 2 or 3 transactions removed does not change the fact that the money did enter the economy Also the fact that the fed buys up the debt from "the public" is a bit of hand wave as well, knowing the fed will buy up any debt they obtain from the treasury these straw purchasers use this assurance to eliminate their risk and further fleece the public, if the fed stopped buying up this debt as soon as it was sold to the "public" the public would stop buying it.

by syshum 5y ago

bellyfullofbac 5y ago

At this point a USD collapse is a collapse of the entire planet's economic system. (IMO, I could be wrong.) It could collapse, but it will take the whole world down with it. To use the monarchy analogy again, yeah the emperor might be naked, but as long as we pretend he isn't, we'll continue to have order. Even China isn't interested in a bankrupt USA/a crashed dollar, because it wants to keep its people fed, and they get fed when they can toil in the factories making cheap shit for Walmart...

syshum 5y ago
While none wants the dollar to collapse they are also not willing to see their own economies suffer at the hand of irresponsible people in the fed and Treasury. It is pure hubris to believe the it is impossible for the world to get off the dollar. Hell their have been talks about it in a orderly way by many nations for a long time. OPEC is one of the leading reason for US dollar dominance. If OPEC starts trading oil in something other then USD well we here in the us are going to have a bad time.

throw0101a 5y ago

> The normalcy bias of people combined with the pure arrogant hubris that the USD can not collapse will lead USD collapse Reserve currencies do not "collapse", they get replaced. The GBP didn't collapse for example: over the course of decades the USD came up and for many years they were used equally. So if the USD is to be replaced, the obvious question is: with what? EUR? CNY/RMB? JPY? Other? A mix? For a paper on possible multi-currencies, see Eichengreen 2014: * https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2580651 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2580651 For a good historical overview see How global currencies work past, present, and future by Eichengreen, Chitu, Mehl. > The history of the world shows empires collapse. To believe the US is somehow immune is moronic The US is not an empire. It is a hegemony: it simply exerts (exerted?) influence because of the size of its economy relative to everyone else, and it was willing to spend a whole bunch of money to basically keep the peace. > The world has already sent a singal we have too much debt and too much spending as they have stopped buying our debt so the fed has to buy it all with money created from thin air What signal would that be? The US Treasury sells bonds to interested buyers, and the Fed then gets the bonds on the secondary market. No one has stopped buying US bonds. Further, the purchase are done with US Fed reserves, which are not "real" money as they do not enter the economy and simply sit in the accounts that institutions have at the Fed.

syshum 5y ago
>>Further, the purchase are done with US Fed reserves, which are not "real" money as they do not enter the economy and simply sit in the accounts that institutions have at the Fed. I am really tried of this lie being repeated over and over again, the money enters the economy at the point in which the Federal Government spends the money it gets from selling the debt. The Federal Reserve can not buy US Debt and claim that money never enters the economy because the US FEDERAL GOVERNMENT SPENDS THE MONEY. Sure the Fed itself does not spend it, but just because it it 2 or 3 transactions removed does not change the fact that the money did enter the economy Also the fact that the fed buys up the debt from "the public" is a bit of hand wave as well, knowing the fed will buy up any debt they obtain from the treasury these straw purchasers use this assurance to eliminate their risk and further fleece the public, if the fed stopped buying up this debt as soon as it was sold to the "public" the public would stop buying it.