Non-limited US dollar supply

[Smartprofit]

The economic and financial situation in the US is very bad, but it must be admitted that in other countries (the European Union, China, Russia, etc.) things are even worse.

After all, the US is still a great power that creates 25 percent of the world's gross domestic product (previously - 50 percent of the world's gross domestic product). The US is still technology, democracy, a good demographic situation and a strong army.

Regarding US treasury bonds (treasuries) - countries like China have a lot of them. But in practice, they cannot sell them quickly, since it is simply impossible to find buyers for such a large volume of bonds.

Yes, indeed, the US dollar is starting to lose its position in the world, but this process is gradual, not avalanche-like. I think that the US government will manage to reform the modern financial system before the final catastrophe occurs. At the same time, in my opinion, Bitcoin will continue to rise in price.

[LDL]

The supply of a country's local currency is generally unlimited and this causes inflation in a country. If for some reason the country's reserves become short, the government tries to fill the shortfall by increasing the supply of money, resulting in a more widespread increase in inflation in the country. Well, the Bitcoin supply is 21 million, which means that it is not possible to increase the supply of Bitcoin in any way, which is why Bitcoin inflation is never possible. For this reason, many scholars have said that Bitcoin will be the regulator of the future world and that people will choose Bitcoin as an alternative to money.

[takuma sato]

The main point of fiat currencies are obviously the fact that they can be printed on demand. If the supply of fiat was not elastic, then governments couldn't be able to fund their programs through issuing bonds, which the bond market then buys in hopes that the yield % is higher than the expected inflation. The problem is when the expected inflation % is higher than the current yield. Example: US10Y debt is being dumped because the expected inflation from tariffs and other unknowns (or knowns, such as the history of QE of the FED) are pushing the yield higher, so the yield needs to be high enough that it looks attractive to investors. 5% is not attractive for investors on the US30Y and 4.5% on the US10Y. So debt is being dumped in hopes of higher yields, or in hopes that the inflation expectation goes lower again. Since governments just like to eventually print itself out of problems, that is why BTC thesis remains bullish.

[AVE5]

The supply of a country's local currency is generally unlimited and this causes inflation in a country. If for some reason the country's reserves become short, the government tries to fill the shortfall by increasing the supply of money, resulting in a more widespread increase in inflation in the country. Well, the Bitcoin supply is 21 million, which means that it is not possible to increase the supply of Bitcoin in any way, which is why Bitcoin inflation is never possible. For this reason, many scholars have said that Bitcoin will be the regulator of the future world and that people will choose Bitcoin as an alternative to money.

To be emphatic, inflation or devaluing of fiats isn't only focused on the USD nor just the US economy but rather every other countries. But at the US economy is being tackled in a global discord like this is because of the regulatory and economy global supply power of the US which most countries also holds their national treasures tied with the US treasure bonds.
So since the fiats isn't backed with physical values and re he fact it won't have a limited supply due to it commodity factors to manage the economy and as the economy might be faced with geopolitical sentiments, the fiats number of supplies will be unlimited so it could serve it steer the elastic economy.
So  it's vulnerable to be manipulated on inflation if not in a short term maybe somewhere in the future just like the USD which had sometimes posed values of treasures.
Bitcoin will remain a hedge against inflation because of it limited supplies and it decentralization of which the world rest of the world has always hope for the day to be free from US economy regulatory policies.

[philipma1957]

The US keeps printing more and more money to service its debts, and monetises them in bonds. The debt burden is growing at a rate that’s not with the growth in productivity or jobs.

Now because of Trump’s tariffs, the economy is going to slow down even further, prompting the central bank to print even more money for welfare and service its debts, devaluing the currency even more.

That’s not the worst part. Since the US is causing so much economic instability and has proven time and time again that it can’t service its debts sustainably, many countries have been selling US bonds.

The endgame for the dollar is not the BRICS or whatever other stupid fiat, it’s when everyone loses trust in the whole “printing money to growth the economy” mindset and sells their US bonds because they finally realise the debt is worthless and the US won’t be able pay it.


That’s when the US dollar collapses and all the countries with dollars in their reserves also collapse. It will be total Armageddon and the worst economic crisis.

That is when everyone realises THE ONLY WAY IS BITCOIN

Good luck with this idea.

Trump is in to default the usa bonds.

Everything points to intentionally crashing the dollar by the trumpeter.

Ie this is a deliberate act by the USA and we will get to see it happen.

I have zero idea that btc will save the day.

Since

Trump
Putin
JiPing
Jong Un

Maybe all declare the death penalty for holding it once the USD is dead.

[shinratensei_]

I've switched to bitcoin for my remaining fiat when I see the US 10 year note bond yield isn't going down.
At the same time I also want to grow my capital faster so bitcoin is like the best choice there is.

But I don't think those nightmare scenario will happen, the world have no alternative but to use USD for international trades.

[viljy]

The economic and financial situation in the US is very bad, but it must be admitted that in other countries (the European Union, China, Russia, etc.) things are even worse.

After all, the US is still a great power that creates 25 percent of the world's gross domestic product (previously - 50 percent of the world's gross domestic product). The US is still technology, democracy, a good demographic situation and a strong army.

Regarding US treasury bonds (treasuries) - countries like China have a lot of them. But in practice, they cannot sell them quickly, since it is simply impossible to find buyers for such a large volume of bonds.

Yes, indeed, the US dollar is starting to lose its position in the world, but this process is gradual, not avalanche-like. I think that the US government will manage to reform the modern financial system before the final catastrophe occurs. At the same time, in my opinion, Bitcoin will continue to rise in price.

Do you know what the structure of the GDP of the United States is? 80% of these are services, not a real product. Moreover, even consultations and other small things are recorded in the services, that is, it's all air. So the real GDP is not like that at all. At the same time, the United States consumes about 40% of global GDP, meaning in real terms it consumes more than it produces. How does this happen? Very simple. The difference is provided by the main industry of the United States, the "production" of dollars.

By the way, what are Trump's tariff wars? This is a look at the same situation, but from a different angle. Trump believes that the United States is overpaying for the import of goods with too many of these "dollars out of thin air," or in other words, the debt is growing too fast.

In fact, if we consider the United States as a factory, then they moved the production facilities to China, and left the factory management (administration) in the United States. And they called this factory administration a post-industrial society. But such a society cannot exist without products from factory workshops. And then Trump appears and says that the salary for the factory workers is too high, because the factory administration already owes the workers too much (the national debt is 36 trillion) and it is necessary to reduce salaries (introduce tariffs). Naturally, nothing happened, because the factory administration does not produce anything, and it will simply die without workers' products, because it is impossible to eat office papers or even just dollars.

[summonerrk]

When I watched the documentary about Nixon untying the dollar from gold in 1971, I just couldn't believe it could happen so easily. He literally made a statement on TV and in the press after France decided to exchange a bunch of its dollars for gold, and England followed suit. It's so funny to see that in the world, the fates of such decisions were not made by some world council, but simply the United States took all the decisions personally.
And the skill of diplomats decided the fate of nations and currencies, I mean that a little more and gold could have been tied not to the dollar, but to the pound. But the British sent a scientist, not a politician.
Amazing diplomacy, and how ordinary words and skills of people lay the foundation for the future.

[Smartprofit]

The economic and financial situation in the US is very bad, but it must be admitted that in other countries (the European Union, China, Russia, etc.) things are even worse.

After all, the US is still a great power that creates 25 percent of the world's gross domestic product (previously - 50 percent of the world's gross domestic product). The US is still technology, democracy, a good demographic situation and a strong army.

Regarding US treasury bonds (treasuries) - countries like China have a lot of them. But in practice, they cannot sell them quickly, since it is simply impossible to find buyers for such a large volume of bonds.

Yes, indeed, the US dollar is starting to lose its position in the world, but this process is gradual, not avalanche-like. I think that the US government will manage to reform the modern financial system before the final catastrophe occurs. At the same time, in my opinion, Bitcoin will continue to rise in price.

Do you know what the structure of the GDP of the United States is? 80% of these are services, not a real product. Moreover, even consultations and other small things are recorded in the services, that is, it's all air. So the real GDP is not like that at all. At the same time, the United States consumes about 40% of global GDP, meaning in real terms it consumes more than it produces. How does this happen? Very simple. The difference is provided by the main industry of the United States, the "production" of dollars.

By the way, what are Trump's tariff wars? This is a look at the same situation, but from a different angle. Trump believes that the United States is overpaying for the import of goods with too many of these "dollars out of thin air," or in other words, the debt is growing too fast.

In fact, if we consider the United States as a factory, then they moved the production facilities to China, and left the factory management (administration) in the United States. And they called this factory administration a post-industrial society. But such a society cannot exist without products from factory workshops. And then Trump appears and says that the salary for the factory workers is too high, because the factory administration already owes the workers too much (the national debt is 36 trillion) and it is necessary to reduce salaries (introduce tariffs). Naturally, nothing happened, because the factory administration does not produce anything, and it will simply die without workers' products, because it is impossible to eat office papers or even just dollars.

Donald Trump has many reasons to worry. And it’s not just the huge foreign national debt of the United States.

In the conditions of a potential war with China (and such a scenario is quite probable), the US government cannot allow the production of strategic goods to be located outside the territory of the United States. Moreover, the US government cannot allow such production to be located on the territory of a potential enemy.

The US, as a state, in my opinion, is not only a management center for the world’s factory for the production of goods. The US also has production, the US has universities, the US has engineers, the US has skilled workers.

In the US also has the ability to attract new skilled engineers, scientists and workers from other countries. And if America does this on a systematic basis, then I have no doubt that they will succeed.

[justdimin]

Do you know what the structure of the GDP of the United States is? 80% of these are services, not a real product. Moreover, even consultations and other small things are recorded in the services, that is, it's all air. So the real GDP is not like that at all. At the same time, the United States consumes about 40% of global GDP, meaning in real terms it consumes more than it produces. How does this happen? Very simple. The difference is provided by the main industry of the United States, the "production" of dollars.

By the way, what are Trump's tariff wars? This is a look at the same situation, but from a different angle. Trump believes that the United States is overpaying for the import of goods with too many of these "dollars out of thin air," or in other words, the debt is growing too fast.

Tariffs are just a way to make sure that other nations do not get this much money from Americans, meaning take money out of USA. So when he puts tariffs in, he is saying "if you are going to sell your product here and take money out of USA, you better pay a big tax so that we keep some of it", and not like the people are keeping some of it, you are not buying a 100 dollar product from China, and then keep 25 of it to yourself and would be paying 75 bucks, no, that is not the case.

What is happening is that if the company stays with the same, then they are selling a 100 dollar product, you are still paying 100 dollars for the same product, but this time USA is getting the 25 dollars of it, without doing anything at all, the government is the one who takes it. Of course, this is bad for other nations, and this is bad for Americans too, only good for government of USA.

[EL MOHA]

Bitcoin may be part of the solution, but it certainly isn't the solution. Bitcoin cannot replace the dollar because they have different characteristics and functions, in addition to the limited number of bitcoins, which makes it more of a store of value than a widely traded currency.

Personally, I don't know what the solution could be, but at the same time I know that it is not easy to get rid of the dollar and that we are all stuck with the dollar.

Yes it has always been said that bitcoin cannot replaced the fiat currency but can only act as an alternative currency to it, even though I think there was some exergeration by the OP about the fall of dollars but we can’t simply ignore the fact that it’s power is definitely going down most especially with the economy crisis they have which might lead them to inflation and with the pressure of the BRICs forming its own central currency, it wouldn’t take dollar off the top like that but will definitely affect it.

Where do I see bitcoin coming, I think with bitcoin ever growing adoption and with it’s already proven capability of been a good store of value many who have actually held dollar as their only reserve currency might consider diversification into bitcoin and then use other fiats like BRICs central currency for some trades. This is the solution I fathom will happen in future

[viljy]

Donald Trump has many reasons to worry. And it’s not just the huge foreign national debt of the United States.

In the conditions of a potential war with China (and such a scenario is quite probable), the US government cannot allow the production of strategic goods to be located outside the territory of the United States. Moreover, the US government cannot allow such production to be located on the territory of a potential enemy.

The US, as a state, in my opinion, is not only a management center for the world’s factory for the production of goods. The US also has production, the US has universities, the US has engineers, the US has skilled workers.

In the US also has the ability to attract new skilled engineers, scientists and workers from other countries. And if America does this on a systematic basis, then I have no doubt that they will succeed.

Yesterday I saw a fragment of Trump's speech on this topic. He said he didn't want to manufacture rags like T-shirts and socks in the United States. He wants tanks, AI, chips, something big to be made in the United States. Which is already similar to the USSR, which also did not want to sew rags, but wanted to make tanks and grandly turn rivers from north to the south, as a result, the thirst for rags destroyed this country. Of course, this is just an analogy, but a country with lopsided development, even if it is AI, becomes vulnerable.

Tariffs are just a way to make sure that other nations do not get this much money from Americans, meaning take money out of USA. So when he puts tariffs in, he is saying "if you are going to sell your product here and take money out of USA, you better pay a big tax so that we keep some of it", and not like the people are keeping some of it, you are not buying a 100 dollar product from China, and then keep 25 of it to yourself and would be paying 75 bucks, no, that is not the case.

What is happening is that if the company stays with the same, then they are selling a 100 dollar product, you are still paying 100 dollars for the same product, but this time USA is getting the 25 dollars of it, without doing anything at all, the government is the one who takes it. Of course, this is bad for other nations, and this is bad for Americans too, only good for government of USA.

In practice, it is not China that will pay this money, but consumers in the United States. It's just that the product will be sold for 125 dollars instead of 100. The tariff would work if there was an alternative to Chinese goods. But there is simply no alternative.

[Unknown Op]

The economic and financial situation in the US is very bad, but it must be admitted that in other countries (the European Union, China, Russia, etc.) things are even worse.

After all, the US is still a great power that creates 25 percent of the world's gross domestic product (previously - 50 percent of the world's gross domestic product). The US is still technology, democracy, a good demographic situation and a strong army.

Regarding US treasury bonds (treasuries) - countries like China have a lot of them. But in practice, they cannot sell them quickly, since it is simply impossible to find buyers for such a large volume of bonds.

Yes, indeed, the US dollar is starting to lose its position in the world, but this process is gradual, not avalanche-like. I think that the US government will manage to reform the modern financial system before the final catastrophe occurs. At the same time, in my opinion, Bitcoin will continue to rise in price.

There should be limited supply of USD for the global economy because if there will be more supply of dollars or unlimited supply then there will be inflation rate in the USA which will be bad for American people. Trump should contracts with the countries by watching the benefits of public but there should be no loss of public but print more money is bad for USA economy and for the global economy because the persons who have money in the form of dollars their dollar price will go down and he will become poor and less people will hold dollars.Dollar was best currency in the past but now that is not as famous as cryptocurrency because cryptocurrency is working like brand and millions of investors have easy life due to cryptocurrency.

[davis196]

That’s when the US dollar collapses and all the countries with dollars in their reserves also collapse. It will be total Armageddon and the worst economic crisis.

OP, aren't you contradicting yourself. You say that many countries would get rid of their USD reserves and US government bonds, but at the same time, you say that the countries with USD reserves would collapse. That doesn't make much sense, if you ask me.
The US economy crashing would most likely cause a global economic crisis, but I'm not sure that this global crisis would happen the same way the Great Depression occurred back in the 30s. Maybe the process of dedollarization would reduce the global influence of the US economy and financial system, making all the other big economic powers more resilient to external shocks. The collapse of the US dollar would cause a small global recession for a year or two, which could be followed by a fast global economic recovery.

[Minor Miner]

Regarding US treasury bonds (treasuries) - countries like China have a lot of them. But in practice, they cannot sell them quickly, since it is simply impossible to find buyers for such a large volume of bonds.

According to data from SIFMA, the US Treasury bond market is huge and is considered the most liquid market in the financial market, fluctuating between 500-700 billion per day. So it would be incorrect to say that if Japan or China dumped US Treasuries in the market, there would not be enough liquidity or no buyers.

Not to mention, other countries hold bonds because they believe in the US economy, so even if the market is not liquid enough, the Fed will immediately intervene to stabilize the market. Because if there is a lack of liquidity or a lack of buyers, or the US will not want to buy back either. There is no reason for the world to trust them anymore, so I bet the US will never let that happen. 

[coupable]

Bitcoin may be part of the solution, but it certainly isn't the solution. Bitcoin cannot replace the dollar because they have different characteristics and functions, in addition to the limited number of bitcoins, which makes it more of a store of value than a widely traded currency.

Personally, I don't know what the solution could be, but at the same time I know that it is not easy to get rid of the dollar and that we are all stuck with the dollar.

Yes it has always been said that bitcoin cannot replaced the fiat currency but can only act as an alternative currency to it, even though I think there was some exergeration by the OP about the fall of dollars but we can’t simply ignore the fact that it’s power is definitely going down most especially with the economy crisis they have which might lead them to inflation and with the pressure of the BRICs forming its own central currency, it wouldn’t take dollar off the top like that but will definitely affect it.

Where do I see bitcoin coming, I think with bitcoin ever growing adoption and with it’s already proven capability of been a good store of value many who have actually held dollar as their only reserve currency might consider diversification into bitcoin and then use other fiats like BRICs central currency for some trades. This is the solution I fathom will happen in future

I also don't believe BRICS countries will succeed in creating a unified currency, given that it has been proven that they cannot adopt any of their local currencies as an alternative to dollar. The euro experiment in Europe also failed, exacerbating economic crises at the expense of others. The only logical solution is to adopt a new store of value, given that the United States holds the largest quantities of gold in its reserves and will not allow its use, which would pose a threat to the dollar and thus to its global power and influence. Bitcoin currently offers a good alternative to gold, and therefore I expect that with the increasing adoption of Bitcoin, its price will become more stable, and it will be possible to create a currency backed by Bitcoin.

[philipma1957]

The economic and financial situation in the US is very bad, but it must be admitted that in other countries (the European Union, China, Russia, etc.) things are even worse.

After all, the US is still a great power that creates 25 percent of the world's gross domestic product (previously - 50 percent of the world's gross domestic product). The US is still technology, democracy, a good demographic situation and a strong army.

Regarding US treasury bonds (treasuries) - countries like China have a lot of them. But in practice, they cannot sell them quickly, since it is simply impossible to find buyers for such a large volume of bonds.

Yes, indeed, the US dollar is starting to lose its position in the world, but this process is gradual, not avalanche-like. I think that the US government will manage to reform the modern financial system before the final catastrophe occurs. At the same time, in my opinion, Bitcoin will continue to rise in price.

Do you know what the structure of the GDP of the United States is? 80% of these are services, not a real product. Moreover, even consultations and other small things are recorded in the services, that is, it's all air. So the real GDP is not like that at all. At the same time, the United States consumes about 40% of global GDP, meaning in real terms it consumes more than it produces. How does this happen? Very simple. The difference is provided by the main industry of the United States, the "production" of dollars.

By the way, what are Trump's tariff wars? This is a look at the same situation, but from a different angle. Trump believes that the United States is overpaying for the import of goods with too many of these "dollars out of thin air," or in other words, the debt is growing too fast.

In fact, if we consider the United States as a factory, then they moved the production facilities to China, and left the factory management (administration) in the United States. And they called this factory administration a post-industrial society. But such a society cannot exist without products from factory workshops. And then Trump appears and says that the salary for the factory workers is too high, because the factory administration already owes the workers too much (the national debt is 36 trillion) and it is necessary to reduce salaries (introduce tariffs). Naturally, nothing happened, because the factory administration does not produce anything, and it will simply die without workers' products, because it is impossible to eat office papers or even just dollars.

Okay and every Apple piece of gear is produced by the USA just not in the USA.

This fucks up accounting and measurements bigly

I picked apple as it is the most obvious one.

Oh what  percent of gear runs android?
and what percent runs Microsoft.

One can argue android is a service
One can argue windows is a service


but they are closer to a renewable fuel that the gear needs to run.

also toss in mac iOS

whats left linux

yes we could switch to linux but it would be a mess until the switch happened..

The world setup is complex.

Trumps biggest issue is he wants to simplify it to "merica" wins rest of the world loses

[Richbased]

You know what's funny? The fact that many people still buy US dollars and think that it's the safest asset.

The reason why some people still trust the dollar more is just because United States is the world power, if they are dethroned the dollar will become worthless but why do people still thinks that the dollars will come back stronger again when the world is getting fed up of this Fiat currency called the dollars. Now that countries are trying to embrace bitcoin as a strategic reserved asset, the dollar sure will lose its value the more.

[shield132]

You know what's funny? The fact that many people still buy US dollars and think that it's the safest asset.

The reason why some people still trust the dollar more is just because United States is the world power, if they are dethroned the dollar will become worthless but why do people still thinks that the dollars will come back stronger again when the world is getting fed up of this Fiat currency called the dollars. Now that countries are trying to embrace bitcoin as a strategic reserved asset, the dollar sure will lose its value the more.

I believe that people have illusions about the current state of the world. Many people think that the USA is a powerful country that controls the whole world and everything goes exactly according to their plans. There is another part of people who think that we should learn Chinese because soon China will take over the world. Then there is a group of people who think that Russia will rule the world and etc...

In my country, people invest in US dollars because they look at exchange rate and haven't heard anything about inflation. When they see that one day 1 USD costs 2.73 Gel and the next day it costs 2.75 gel, then 2.77 gel, they think that US dollar is getting stronger and by investing it, they are not only beating inflation but get profit. They don't understand that besides the inflation of national currency, the US dollar is also experiencing inflation and that's why everything is becoming so expensive.

[mindrust]

That’s inevitable for every fiat currency out there. If I had to take this one step further, i’d say that’s the only purpose of the fiat currencies. They simply exist to expand. If the central banks don’t print more, the system will collapse. Call it a scam, theft, call it whatever you want but that’s the harsh reality we have been living in since the 1970’s when Nixon removed the gold-dollar peg.

Why did he do it? Not because he wanted to. Frankly, he didn’t have a choice. When your opponents cheat and rip you off by printing money, you don’t have a choice but to follow their example.