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Monetary war like this is effectively just defaulting on your debt. Money is debt. Having a dollar literally means that the abstract they owe you one. One what

Monetary war like this is effectively just defaulting on your debt. Money is debt. Having a dollar literally means that the abstract they owe you one. One what? That's for the market to decide when you decide to cash in the favor. It's all based on trust that what you are owed will be paid back in the future. If the US says "hey, I know you thought you had 100 billion favors you could cash in from us at any time, but actually you don't unless you start behaving how we tell you to", then money becomes a mechanism of control. Sovereigns don't like being controlled by outside forces and will start to look for ways to ascend beyond the control structure, like they always have for all of history. I think this monetary war is going to get messier than most people want to believe.

kkfx 5y ago
Money is debt because of a common and accepted scam, not by nature. Money is debt because years ago some decide that the State should not own money, few private should and they lease them in exchange of an interest, but such scam is vapor: if a country want can easily say "sorry man, there is no debt, we have the army, natural resources etc so shut up and obey or we erase you in a so painful way you'll pry for your own death". Such "defaults" are just scam skirmish from some who want to say his opponent are not worth what they seems to be, nothing practical. The main point is exactly what people want to believe: if enough people decide that's time to erase private central bank putting monetary control under state control yes that will be a big step toward Democracy all over the world, but that's utopia, most people do not even know that debt it's money, not real debt.