4 ms·
> So far, the US has been able to scratch that itch because it’s been the same government that has been predictably the same for nearly 250 years. This is an
by outop 2y ago
> So far, the US has been able to scratch that itch because it’s been the same government that has been predictably the same for nearly 250 years.
This is an exaggeration. There have been at least 3 drastic shocks to the United States currency in that time. The secession of the southern states, who adopted their own currency. Leaving the silver standard for the gold standard. And devaluing the dollar then leaving the gold standard unilaterally in the 1970s.
- njarboe 2y agoDon't forget FDR's banning private ownership of gold and then changing the value of the dollar from around $20 and ounce to $35 and ounce.
- dralley 2y agoThe USD didn't really become the world reserve currency until after WWII when the European empires fell apart and the US was a clear superpower.
- marcus_holmes 2y agoThis. The US Dollar could have crises and be flaky because Sterling was the global reserve currency (and everyone on the gold standard, obviously). It'll be interesting to see what happens now. I suspect the Russians will play silly buggers because they seem to enjoy that. And they have significant oil to play silly buggers with.
- deleted 2y ago[deleted]
- baetylus 2y agoThere's an active de-dollarization effort from BRICS. Unsure how effective it'll be with the LIO
- pas 2y agoHow active and serious that effort is? https://www.noahpinion.blog/p/brics-is-fake https://www.noahpinion.blog/p/brics-is-fake
- ethbr1 2y agoBrazil, India, and South Africa seem odd bedfellows with increasingly authoritarian China and Russia. I have no doubts they'll all increase trade together, including military hardware, but establishing a reserve currency requires trust and dependency. Those seem heavy loads for the ties of pragmatism and convenience that bind BRICS together.
- treflop 2y agoNo you’re right. I neglected to mention them because I think it goes both ways and it acts as a test. In the end, after the shock, it went back to business as usual. It’s like despite the Jan 6 riots, everything still is business as usual. It’s like the old adage about investing in the S&P 500 over any 10 year period… you will make money, but it doesn’t mean it will have made money the entire time during those 10 years. But if you expect that you will be around at least 10 years, then it makes sense.
- canadianfella 2y ago[dead]