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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 Reserve currencies do not "collapse",

> 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.

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.