4 ms·

And the reason dollars have value is because we have intelligent people in government managing the system and preventing it from going haywire, not because of s

And the reason dollars have value is because we have intelligent people in government managing the system and preventing it from going haywire, not because of some sort of magic. It might not matter when you go buy eggs but it's still interesting to see what's going on under the hood.

jessaustin 4y ago
The "magic" is the military that threatens every inch of the globe, the CIA (and other more clandestine organizations) that punish leaders who value the material interests of their people over those of American firms (Allende, Mosaddegh, Magufuli, etc.), the IMF and World Bank who impose austerity as table stakes, and ironclad control over global banking infrastructure. The nerds with their "balance sheets" themselves don't imagine they have any effect on any of this. TFA skirts fairly close to crank territory.
- shadowgovt 4y ago
  Essentially. The leaders of other countries don't stuff dollars into the proverbial mattress because our central-bank T-sheet looks good. They do it because if their country goes into civil war and their currency becomes worthless, they perceive our currency as least likely to do that next. It's our demonstrated force projection, our vast multinational business reach, our entanglement into the IMF (the dollar being the currency used to pay IMF debts), and a couple centuries of relatively stable democracy that pins the value of the dollar. The January 6 insurrection did more damage to the international perception of the dollar than anything the Federal Reserve is doing.
- OscarCunningham 4y ago
  It has more to do with the US's ability to reliably tax its own citizens. Plenty of small countries also have stable currencies, but only the ones with stable governments.
  - jessaustin 4y ago
    Yes, that is another factor, and shouldn't be underestimated. Government-issued currency exists the moment the government decides it will be accepted for payment of taxes.

jessaustin 4y ago

The "magic" is the military that threatens every inch of the globe, the CIA (and other more clandestine organizations) that punish leaders who value the material interests of their people over those of American firms (Allende, Mosaddegh, Magufuli, etc.), the IMF and World Bank who impose austerity as table stakes, and ironclad control over global banking infrastructure. The nerds with their "balance sheets" themselves don't imagine they have any effect on any of this. TFA skirts fairly close to crank territory.

shadowgovt 4y ago
Essentially. The leaders of other countries don't stuff dollars into the proverbial mattress because our central-bank T-sheet looks good. They do it because if their country goes into civil war and their currency becomes worthless, they perceive our currency as least likely to do that next. It's our demonstrated force projection, our vast multinational business reach, our entanglement into the IMF (the dollar being the currency used to pay IMF debts), and a couple centuries of relatively stable democracy that pins the value of the dollar. The January 6 insurrection did more damage to the international perception of the dollar than anything the Federal Reserve is doing.
OscarCunningham 4y ago
It has more to do with the US's ability to reliably tax its own citizens. Plenty of small countries also have stable currencies, but only the ones with stable governments.
- jessaustin 4y ago
  Yes, that is another factor, and shouldn't be underestimated. Government-issued currency exists the moment the government decides it will be accepted for payment of taxes.