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Finally! People calling it what it is. Corruption. And the domestic angle isn’t even the worst. Breton-Woods put America in a sort of custodianship which they
by DSingularity 4y ago
Finally! People calling it what it is. Corruption.
And the domestic angle isn’t even the worst. Breton-Woods put America in a sort of custodianship which they have betrayed. Raising and lowering rates to promote your domestic economy without even considering the global impact is fucked up if you promised the world that your currency can serve as a trusted foundation.
World order is still fluctuating all as a result of these betrayals.
- itsoktocry 4y ago>if you promised the world that your currency can serve as a trusted foundation. How do people get this backwards? The US didn't say, "use our currency as the global reserve currency!" Countries chose and continue to choose to use the USD for global commerce. No one is forcing them, the USD really is valuable. >World order is still fluctuating all as a result of these betrayals. So raising rates is a betrayal, but allowing inflation to eat away at savings of those with USD holdings is not betrayal?
- BurningFrog 4y agoYeah, USD is pretty badly managed, but still better than most other currencies.
- justincormack 4y agoAlso the US runs a deficit so there are lots of opportunities to own dollars abroad.
- scotty79 4y agoAnd all the 'democracy spreading' in countries that considered selling resources for something else than dollars is just encouragement for other countries to make the right decission?
- llampx 4y agoYou know what the US does to country leaders who even talk about trading oil in currency other than USD? Hint: kill with impunity.
- samus 4y agoBretton-Woods is history. Since the Nixon Shock, the USD isn't the global reserve currency anymore. It's still influential, but only because of the giant domestic market in the USA and its status as the only global superpower.
- JPws_Prntr_Fngr 4y ago[flagged]
- scotty79 4y agoUSA wouldn't be able to run at trade deficit for decades if it didn't literally print money for the rest of the global economy.
- samus 4y agoThese two things are related the other way round as well: to become a reserve currency, the using country must have a trade deficit. Else the rest of the world would not have enough liquidity to actually use the currency, and the market would grind to a halt. If no liquidity were available, any transaction would have to be secured with other assets. That asset would be the actual reserve currency then.
- scotty79 4y agoThat's true, but it doesn't make it better in any way. Ideally reserve currency should not be the currency of any single country to avoid this situation where one country basically freeloads on the global economic development by printing paper and can even cause wave of global inflation by arbitrarily deciding to print waaay to much, too quickly. You might argue that to keep printing this country needs to invest into aircraft carriers to keep everybody else in line and well behaved. But it's still a very profitable arrangement as the recent history of USA shows.
- Loughla 4y ago>Raising and lowering rates to promote your domestic economy without even considering the global impact This is an honest question, that may be naive. But, what are institutions formed, founded, and ran inside of the US, overseeing the US government and policy, supposed to do instead of considering what is best for their own country? Are you arguing that, because the world chose the US dollar as its de-facto global currency, that the US is obligated to consider the entire world first, instead of its own citizens?