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I don't think many American's understand how problematic it will be if we lose the dollar oil market. The rest of the world has to produce and export things of
by anm89 5y ago
I don't think many American's understand how problematic it will be if we lose the dollar oil market.
The rest of the world has to produce and export things of value to create wealth. The US for the most part gave up exporting things of value over the last 30 years. Instead we export dollars and treasuries and essentially play the world's banker.
For example, we can kind of sort of temporarily get away with MMT but that's only because we have the reserve currency and the global system can take up a lot of dollar supply. Try running those same policies with failing treasury auctions and you will have people rioting in the streets as we get a taste of real inflation.
- tharne 5y agoWe understand, alright. My hope, though I'm not optimistic, is that this serves as a shot across the bow and we start the long and hard process of getting our financial house in order. But yes, you are correct. If we don't get off this MMT crazy train before the dollar loses its unique status in the world economy, we're f**d
- HWR_14 5y ago> The US for the most part gave up exporting things of value over the last 30 years. Nonsense. In inflation adjusted dollars, the US exported twice as much in 2021 as from 1991. Edit: And the numbers look far better in 2019 vs 1989.
- s1artibartfast 5y agois that adjusted for inflation? $1 in 1991 is almost exactly $2 in 2021
- HWR_14 5y ago> is that adjusted for inflation? Yes. As I said "In inflation adjusted dollars".
- s1artibartfast 5y agoHa, I read it twice and still missed that, thanks.
- HWR_14 5y agoIt happens. I've done the same thing to people on here. And in real life too.
- anm89 5y agoAnd remind me of how our current account has trended in that same period. In 91 it was just a bit positive. It has fallen off of a cliff since then. We are drastically more dependent on the ability to import cheap goods in a way that is not even close to being offset by imports than we were in 91. So im sticking eith absolurely not nonsense