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Right. As I understand it, the U.S. is the largest consumptive economy, which necessarily means that, eventually, whatever you're selling needs to involve the e
by maroonblazer 3y ago
Right. As I understand it, the U.S. is the largest consumptive economy, which necessarily means that, eventually, whatever you're selling needs to involve the exchange of dollars. And if the global demographic trends play out, that's not changing for a very, very long time. So why the sudden surfeit of articles suggesting the dollar-as-reserve is at risk is beyond me.
- neximo64 3y agoI believe the sudden dollar articles are showing up because of the Russian war and sanctions and a weaker us dollar. Even if the demographics changes play out the issue is the growing economies are consuming out of investment and not capital, and do not run trade deficits (so the other party doesn't have Yuan saved up for example). So there is nothing to reinvest. Almost every country China trades with has a trade surplus with China. Which means everyone is buying from China and they don't save up Yuan, but save up the other countries currency.
- senectus1 3y agoBack in the day (like 10 years ago I think) I was speaking with an exec at the company i work for that had just come back from a business trip to China. He told me an amazing fact that still amazes me. The two biggest customers of china's exports are (explicitly in the following order): Walmart The United states of America... *in that order*