4 ms·

Now in what circumstances the dominance of the dollar would end? The dollar has pretty much replaced gold in the world economy. And the US happens to own the on

Now in what circumstances the dominance of the dollar would end? The dollar has pretty much replaced gold in the world economy. And the US happens to own the only mine in the world. I don't see any scenario, bear some sort of cataclysmic event, that would, in say, the next 50 years, change any of that. But I would gladly have my mind changed.

bradleyjg 5y ago
Hogs get slaughtered. We’ve collectively figured out that we have the world’s only gold mine and are busy exploiting the F out of it. Both parties, round the clock. For example, we prop up our residential housing market by having one part of the government create dollars to buy the mortgages backed securities created by another part of the government in order to keep the yields down and justify low mortgage interest rates. Do you think the rest of the world is going to sit back and be cynically exploited forever?
- skywal_l 5y ago
  > Do you think the rest of the world is going to sit back and be cynically exploited forever? Yes absolutely. Because this system does not benefits american citizens (it used to, but it is less and less the case). It benefits world elites which have been co-opted in a global financial system which is based on the dollar. Hell, the CCP leaders all own assets in dollars, they wouldn't want to see any of this change. Remember that the money that fuel the 2008 bubble was, for the most part, chinese investments. Bottom line is, the world is driven not by ideologies or political interests but by economic interests. At the top: greed and at the bottom: hunger, with a declination in between. Both ends tend toward the status quo and the dollar is very much part of it. For me, only ecological collapse or some other unforeseen global cataclysm would change any of that and probably not for the best.
  - bradleyjg 5y ago
    It absolutely does benefit US citizens. The argument to the contrary about boogeyman elites is just designed to let ordinary Americans off the hook so they will join in your crusade (and so they won’t have to feel guilty.) Ordinary American homeowners have massively benefited from rising home prices. They’ve spent that money on vacations, cars, drugs, etc.
kipchak 5y ago
I could see alternative currencies becoming and increasingly available option. Something like SDRs used by the IMF could emerge for example, made up of multiple international currencies. Not necessarily a replacement, but a decreasing reliance. Russia, the EU and China are fairly aggressively de-dollarizing, and encouraging trading partners to do the same.[1][2] See CMIM for example in the Asia region, INSTEX in the EU to get around Iran sanctions and the creation of the "Petroyuan". Lyn Alden has a great overview.[4] [1]https://www.everycrsreport.com/files/2021-07-23_IF11885_09a6986fb2de221b83de761f118062ca2def8737.pdf https://www.everycrsreport.com/files/2021-07-23_IF11885_09a6... [2]https://www.csis.org/blogs/new-perspectives-asia/chiang-mai-initiative-multilateralization-cmim-if-not-now-then-when https://www.csis.org/blogs/new-perspectives-asia/chiang-mai-... [3]https://infobrics.org/post/32689/ https://infobrics.org/post/32689/ [4]https://www.lynalden.com/fraying-petrodollar-system/#fraying https://www.lynalden.com/fraying-petrodollar-system/#fraying
- deleted 5y ago
  [deleted]

bradleyjg 5y ago

Hogs get slaughtered. We’ve collectively figured out that we have the world’s only gold mine and are busy exploiting the F out of it. Both parties, round the clock. For example, we prop up our residential housing market by having one part of the government create dollars to buy the mortgages backed securities created by another part of the government in order to keep the yields down and justify low mortgage interest rates. Do you think the rest of the world is going to sit back and be cynically exploited forever?

skywal_l 5y ago
> Do you think the rest of the world is going to sit back and be cynically exploited forever? Yes absolutely. Because this system does not benefits american citizens (it used to, but it is less and less the case). It benefits world elites which have been co-opted in a global financial system which is based on the dollar. Hell, the CCP leaders all own assets in dollars, they wouldn't want to see any of this change. Remember that the money that fuel the 2008 bubble was, for the most part, chinese investments. Bottom line is, the world is driven not by ideologies or political interests but by economic interests. At the top: greed and at the bottom: hunger, with a declination in between. Both ends tend toward the status quo and the dollar is very much part of it. For me, only ecological collapse or some other unforeseen global cataclysm would change any of that and probably not for the best.
- bradleyjg 5y ago
  It absolutely does benefit US citizens. The argument to the contrary about boogeyman elites is just designed to let ordinary Americans off the hook so they will join in your crusade (and so they won’t have to feel guilty.) Ordinary American homeowners have massively benefited from rising home prices. They’ve spent that money on vacations, cars, drugs, etc.

kipchak 5y ago

I could see alternative currencies becoming and increasingly available option. Something like SDRs used by the IMF could emerge for example, made up of multiple international currencies. Not necessarily a replacement, but a decreasing reliance. Russia, the EU and China are fairly aggressively de-dollarizing, and encouraging trading partners to do the same.[1][2] See CMIM for example in the Asia region, INSTEX in the EU to get around Iran sanctions and the creation of the "Petroyuan". Lyn Alden has a great overview.[4] [1]https://www.everycrsreport.com/files/2021-07-23_IF11885_09a6986fb2de221b83de761f118062ca2def8737.pdf https://www.everycrsreport.com/files/2021-07-23_IF11885_09a6... [2]https://www.csis.org/blogs/new-perspectives-asia/chiang-mai-initiative-multilateralization-cmim-if-not-now-then-when https://www.csis.org/blogs/new-perspectives-asia/chiang-mai-... [3]https://infobrics.org/post/32689/ https://infobrics.org/post/32689/ [4]https://www.lynalden.com/fraying-petrodollar-system/#fraying https://www.lynalden.com/fraying-petrodollar-system/#fraying

deleted 5y ago
[deleted]