4 ms·

>From where I'm sitting, once the debt service exceeds revenue, we'll have to get in a big war, destabilize domestic affairs with tax hikes (which are unlikely

>From where I'm sitting, once the debt service exceeds revenue, we'll have to get in a big war, destabilize domestic affairs with tax hikes (which are unlikely to work, based on Laffer curve), or cease to pretend that the US currency is a stable trading platform. I guess the third option seems alright for the rest of the world, except no one else's seems to be particularly appealing. ...or we just change the price of a dollar. It's good to be the king. https://en.wikipedia.org/wiki/Modern_monetary_theory#Government_bonds_and_interest_rate_maintenance https://en.wikipedia.org/wiki/Modern_monetary_theory#Governm...

spaceman_2020 3y ago
The King scared away its biggest buyers with the sanctions on Russia. China is dumping its dollars. Other non-western countries like India have been slow to add to their reserves after the Russia sanctions as well.
- ramesh31 3y ago
  >China is dumping its dollars. For what, though? This is a matter of China needing cash, not exchanging one investment for another.
  - DSingularity 3y ago
    If you say so.
- dgellow 3y ago
  Far from being an expert but from my understanding China’s economy is in a fairly difficult situation at the moment. They are selling because they urgently need lot of cash, not because they are afraid of USD value.
  - spaceman_2020 3y ago
    Any country that’s not completely within USA sphere of influence would rationally not want to hold dollars after what they did to Russia’s reserves.
QuarterReptile 3y ago
>...or we just change the price of a dollar. It's good to be the king. > or cease to pretend that the US currency is a stable trading platform. Same thing.
- ramesh31 3y ago
  >Same thing. You have to look at the alternatives. There is only one earth and there only a few countries on it with stable enough monetary policy to invest in "risk free". The US tops that list by a massive margin, even given all of our other issues. Can you name a single safer investment today than US Treasuries? And do you think that any other country on earth is able to maintain the stability that we can into the future?
  - QuarterReptile 3y ago
    I like to think a primary goal of empire should be to burn out as slowly as possible, and citizens of an empire should work toward that outcome. Having said all that, no, I believe that the US will be the most stable large state for my entire lifetime. Just the same, I would like my children to live in a US and world that is as stable as the one my parents have had.

spaceman_2020 3y ago

The King scared away its biggest buyers with the sanctions on Russia. China is dumping its dollars. Other non-western countries like India have been slow to add to their reserves after the Russia sanctions as well.

ramesh31 3y ago
>China is dumping its dollars. For what, though? This is a matter of China needing cash, not exchanging one investment for another.
- DSingularity 3y ago
  If you say so.
dgellow 3y ago
Far from being an expert but from my understanding China’s economy is in a fairly difficult situation at the moment. They are selling because they urgently need lot of cash, not because they are afraid of USD value.
- spaceman_2020 3y ago
  Any country that’s not completely within USA sphere of influence would rationally not want to hold dollars after what they did to Russia’s reserves.

QuarterReptile 3y ago

>...or we just change the price of a dollar. It's good to be the king. > or cease to pretend that the US currency is a stable trading platform. Same thing.

ramesh31 3y ago
>Same thing. You have to look at the alternatives. There is only one earth and there only a few countries on it with stable enough monetary policy to invest in "risk free". The US tops that list by a massive margin, even given all of our other issues. Can you name a single safer investment today than US Treasuries? And do you think that any other country on earth is able to maintain the stability that we can into the future?
- QuarterReptile 3y ago
  I like to think a primary goal of empire should be to burn out as slowly as possible, and citizens of an empire should work toward that outcome. Having said all that, no, I believe that the US will be the most stable large state for my entire lifetime. Just the same, I would like my children to live in a US and world that is as stable as the one my parents have had.