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He doesn't seem to recognize that the government debt is backed by not only the entire productive capacity of the nation, but also the willingness of creditors
by Stealthisbook 3y ago
He doesn't seem to recognize that the government debt is backed by not only the entire productive capacity of the nation, but also the willingness of creditors to tank the world denominated currency. It's possible that some political fights could temporarily sway the market but it would take a broader societal collapse to actually kill the dollar.
- specialist 3y agoYes and: The US dollar is worth as much as the US military says it is.
- panick21_ 3y agoThat's not how markets work. And the US military does not control the world either. The US military couldn't even the value of currency in Baghdad.
- specialist 3y agoOh. My bad. How do markets work?
- panick21_ 3y agoPeople can meet anywhere anytime in private and trade whatever they want and negotiate and that determines the price. And this can easily happen in any country not controlled by the US. So the US military opinion on what the doller should be worth is pretty much irrelevant.
- specialist 3y agoWhy do trading partners have to hide their transactions?
- panick21_ 3y agoWhat are you talking about? Nobody 'has to' do anything. The point is they can. All the way from individuals up to states.