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The controller of dollars gets to mint new dollars, making existing dollars less valuable. Other countries who use dollars do not have that privilege. That is
by londons_explore 1y ago
The controller of dollars gets to mint new dollars, making existing dollars less valuable.
Other countries who use dollars do not have that privilege.
That is effectively a 2% annual tax on the entire world, paid to the controller of the dollar.
- suzzer99 1y agoAnd we're going to blow it all up for no reason.
- mattmaroon 1y agoThe people who are blowing it up are doing it for a reason. You can disagree with them (I largely do) but there will likely be some upsides. I don’t know if they’ll be worth it, but all the economists said the trade war with China was a bad idea in Trump’s first term but has come around to it by the time Biden got into office. I wouldn’t say I’m optimistic but it’s possible it may work.
- suzzer99 1y agoI think we have a madman at the helm leading sycophants who won't challenge him.
- mattmaroon 1y agoIs it not possible that the madman is actually hiring people who think these things and he agrees with them? You give the mad man more credit than I do if you think he’s the idea guy.
- HDThoreaun 1y agoLiterally nobody is holding dollars in cash. Everybody holds them via bonds which return more than inflation.