4 ms·

Or any country seeking to displace the US dollar as the global reserve currency, this’ll be the perfect wedge to do so. I expect the federal reserve won’t be a

Or any country seeking to displace the US dollar as the global reserve currency, this’ll be the perfect wedge to do so. I expect the federal reserve won’t be able to print trillions of dollars with ease anymore once USD loses its global reserve status.

adventured 5y ago
> I expect the federal reserve won’t be able to print trillions of dollars with ease anymore once USD loses its global reserve status. That's not how central banking works at all, of course the Fed will find it trivially easy to print trillions of dollars without the global reserve currency. See: Japan (BoJ) and the EU / Eurozone (ECB). They both printed more per GDP or per national assets than the Fed has, and they didn't spark a gigantic wave of consumer inflation doing so either. Neither had anything remotely close to the global reserve currency. China pours manufactured credit into its system whenever it feels like it to juice their economy, and is one of the most indebted nations (at this point it's drowning in debt). They did it all without the global reserve currency, they do not find it difficult to print at will (while leaning on a currency with far less global exposure than the Yen). Fortunately the USD as global reserve currency is only strengthened by what Russia is doing, and what China will do next in Taiwan, rather than the opposite being the case. The USD as global reserve currency is going nowhere in the next several decades at a minimum.
hdjjhhvvhga 5y ago
Let's see. The current BRICS group of countries (I don't think you can call them a "coalition" and I feel India is a bit ashamed to be there with Russia now, but they depend on Russian shipments of weapons) can set up any payment system they want to exchange products between themselves. However, setting up such a system takes time and expertise, and as it would work between just these countries, its usefulness would be very limited - for now, the only beneficent would be Russia. But in any case, they would need to agree on a currency, and for sure it wouldn't be the RUB. Using yuans would make things for China quite complicated. And the current situation makes it crystal clear starting a war with another country may put your country in a deplorable position almost immediately. That's a good thing.

adventured 5y ago

> I expect the federal reserve won’t be able to print trillions of dollars with ease anymore once USD loses its global reserve status. That's not how central banking works at all, of course the Fed will find it trivially easy to print trillions of dollars without the global reserve currency. See: Japan (BoJ) and the EU / Eurozone (ECB). They both printed more per GDP or per national assets than the Fed has, and they didn't spark a gigantic wave of consumer inflation doing so either. Neither had anything remotely close to the global reserve currency. China pours manufactured credit into its system whenever it feels like it to juice their economy, and is one of the most indebted nations (at this point it's drowning in debt). They did it all without the global reserve currency, they do not find it difficult to print at will (while leaning on a currency with far less global exposure than the Yen). Fortunately the USD as global reserve currency is only strengthened by what Russia is doing, and what China will do next in Taiwan, rather than the opposite being the case. The USD as global reserve currency is going nowhere in the next several decades at a minimum.

hdjjhhvvhga 5y ago

Let's see. The current BRICS group of countries (I don't think you can call them a "coalition" and I feel India is a bit ashamed to be there with Russia now, but they depend on Russian shipments of weapons) can set up any payment system they want to exchange products between themselves. However, setting up such a system takes time and expertise, and as it would work between just these countries, its usefulness would be very limited - for now, the only beneficent would be Russia. But in any case, they would need to agree on a currency, and for sure it wouldn't be the RUB. Using yuans would make things for China quite complicated. And the current situation makes it crystal clear starting a war with another country may put your country in a deplorable position almost immediately. That's a good thing.