2 ms·
The issue is that the EU and China are not structured to rely on internal consumption. We just cannot buy everything we produce. Fixing that would require years
by gostsamo 9mo ago
The issue is that the EU and China are not structured to rely on internal consumption. We just cannot buy everything we produce. Fixing that would require years of carefully managed policies and at least for the EU, I've lost confidence that the national governments can work well-enough together to manage such a project. The rest of the world is in a similar situation, so it will be fun times until things settle, hopefully, not on a lower equilibrium.
- mrtksn 9mo agoWhy someone needs to consume the stuff produced?
- gostsamo 9mo agoFor the unfortunate necessity to pay the producer and for the consumer to get the benefit of the produce whether tangible or perceived.
- mrtksn 9mo agoSee the core issue is that you get US dollars in exchange, which is of infinite supply but still happens to have value due to the reserve currency status. You send your stuff to US, you get the dollars and pay your suppliers etc but they don’t send that dollar to US to get something they want because US doesn’t actually produce that many stuff. So you should be able to augment the US, pay the producers with your imaginary dollars you put in the books for example. Sure that will be fraud but it is fraud only because you are not US. However that’s not the point, the point is that you don’t actually need US, you need to figure out a financial instrument that fulfills the role of US and that must be possible.