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We are at a pace of detoriation of the US dollar. It is quite obious that the dollar at some point in time will no longer be the worlds reserve currency.
We produce nothing and import everything. We send our dollars for these goods, and the dollar is losing more and more value at a accelerated pace.
I was at a party today talking to a neighbor that recently moved up the street. I elaborated the situation about the dollar most likely losing its status in the next decade or so. He laughed it off and did not take it serious.
Why are people in denial that the ponzy show is over and we abused the power we were granted with?
I recognise it as well. The United States needed to become self-sufficient by bringing industries back and allow for commodity production stateside. Trump had the right idea but not nearly enough support in Congress to get it all done.
Now with the push to alienate important foreign markets like India and various traditionally nonaligned countries we're going to see a pivot in the economic role the West and the USA plays. India's defence minister clarified this to the USA a day or so ago.
We still produce quite a bit. Problem is we also have lots of parasites on both the top and bottom, and because of unlimited QE any concept of fiscal conservatism and trying to be more efficient to cut costs is gone.. these days it's zombie entities full of debt that call the shots, knowing they will get bailed out in the end or their stocks pumped up which is effectively the same thing... a bailout.
We are at a pace of detoriation of the US dollar. It is quite obious that the dollar at some point in time will no longer be the worlds reserve currency.
We produce nothing and import everything. We send our dollars for these goods, and the dollar is losing more and more value at a accelerated pace.
I was at a party today talking to a neighbor that recently moved up the street. I elaborated the situation about the dollar most likely losing its status in the next decade or so. He laughed it off and did not take it serious.
Why are people in denial that the ponzy show is over and we abused the power we were granted with?
Your neighbor was right. It seems you are confusing, maybe conflating, at least partially, general price inflation/local purchasing power metrics, currencies held as central banking reserves and dollar strength relative to other currencies.
The dollar will, and has been, strengthening as the Fed. increases the FFR.......over the last month the $ is up against the Euro, yen and Renminbi/yuan. FWIIW the $ is up against the yen and Euro over the last 12 mos as well.
Right now for every Renminbi held as reserve there are $21 held as reserves. Let me know when the Renminbi/yuan moves into 4th place as a reserve currency past the Pound. Further, $s as reserves increased more than the Renminbi last year.
A final factor is a little in the weeds but because we run a trade deficit with the Chi-coms they must hold lots of $.......that factor alone will keep the $ as the key reserve most likely for many decades.
It is the fate of all fiat currencies, the almighty USD included, to be destroyed, either in a hyperinflation, or in a devastating loss of confidence.
Having the reserve currency status is an immense privilege- one that the US has abused to the extreme and does not deserve. All fiat currencies are essentially garbage, but the USD is perhaps the most rotten of them all.
Why should I care? I have most everything I need. There is very little I buy from US corporations, let alone crap from overseas where the value of my dollar matters even more. If you feel your currency is going to be nearly worthless, trade it in for stuff you think will be worth something like precious metals, real estate, some people like bitcoin... There are many things you could buy that would hold value, while the US dollar is only worth about 2% of what it was 100 years ago... Obviously, not a good long term track record.
Do you understand how the system works yet? It's a feature, not a flaw.
Why should I care? I have most everything I need. There is very little I buy from US corporations, let alone crap from overseas where the value of my dollar matters even more.
You realize that without the reserve currency status, the US would be a third world country literally overnight? We would legitimately be no better off than Haiti.
You realize that without the reserve currency status, the US would be a third world country literally overnight? We would legitimately be no better off than Haiti.
No it wouldn't. Nations collapse all the time and don't all become like Haiti. 3rd world outcomes happen for reasons that has nothing to do with the collapse, and everything to do with what happens after the collapse... When it's time to pick up the pieces and start over. I doubt it would even come to that in the USA, unless basic infrastructure was in ruins. We have everything we need resource wise to tell the rest of the world to pound sand. If we are too stupid to wisely allocate scarce resources, well, we deserve everything we get in that case. We are a very highly educated country, supposedly.
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