4 ms·
I feel like there was a lot of analysis of signals in this blog, but at the end is the only thing that matters: The dollar has power if and only if belief in th
by phillipcarter 1y ago
I feel like there was a lot of analysis of signals in this blog, but at the end is the only thing that matters: The dollar has power if and only if belief in the vast US institutions holds. I would extend that to go beyond our government, as the US private sector and cultural outputs are also incredibly powerful in this world.
- bombcar 1y agoIsn’t that true of all (fiat) currencies? Maybe even gold and silver somewhat, too? There’s a faith that the value tomorrow will be somewhat similar today; otherwise trade becomes much more difficult.
- junto 1y agoThis is very true. I have confidence in a car driver that has many years of experience, acts consistently and rationally, does not overly hesitate and is confident in their capabilities. I do not trust a driver that appears drunk at the wheel. I would argue that the Fed is the last bastion of sanity in the madhouse. When that goes and no longer acts impartially, the drunk driver is the default.