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I refer to this as the US 3rd nuclear bomb. Most countries hold USD reserves/bonds. If US prints money, the wealth of all countries holding USD goes down. Whi
by nobrains 4y ago
I refer to this as the US 3rd nuclear bomb.
Most countries hold USD reserves/bonds.
If US prints money, the wealth of all countries holding USD goes down. While the wealth of US increases.
Since US started this monetary policy of easy money printing, they have been "bombing" the rest of the world, violence-free, ammunition-free and uranium-free.
I am not an American, but if I were, I would be pretty happy about it. Yes, it would affect me and my neighbors, but in the end I would be getting a net benefit.
The real beauty is how the other countries don't even fully realize this is happening to them and the people who do realize (finance ministries, central bankers, etc.) are kept rich enough to not talk about it too much.
- bagels 4y agoThey are trying to replace usd as the reserve currency.
- tomcam 4y ago> If US prints money, the wealth of all countries holding USD goes down. While the wealth of US increases. True, yet average Americans lose out because their savings get eaten away by inflation
- heartbeats 4y agoReal interest rates have been positive. Unless you were saving in a mattress, your purchasing power increased.
- landemva 4y agoNot where I have been living in USA. Food and energy and rent in USA far outstripped interest rates on savings accounts or government bonds.
- heartbeats 4y agoBut for how long? Past year? Ten years? Century?
- tomcam 4y agoWut? Tell me where savings accounts have rates that exceed inflation.
- notahacker 4y agoPeople in other countries usually have freedom to minimise their US dollar holdings, holding their wealth in pesos, rupees or lira instead and only obtaining dollars for specific transactions. But they don't, because they'd lose a lot more wealth if they held it in pesos, rupees or lira than USD. In fact the story of the last decade has been one of significant increases in the purchasing power of wealth held in dollars compared even with currencies of reasonably stable Western developed economies.