Non-limited US dollar supply

[jaberwock]

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.

While I do disagree with his assessment. I assume he is saying "nations are getting rid of their USD investments because the ones who doesn't will crash", which makes sense. Both statements are true to each other, if you think USD will crash, then you sell it and get out, and the ones how don't will have trouble.

I do disagree with it though, while I believe USD doing terribly, their luck is that others are doing even worse, which means USD could crash even more, and it would still be best currency, only because others are doing a terrible job. If we keep investing into USA bonds and so forth, then we are going to see, it will do better than almost all nations. You need to realize USD is strong compared to others, not compared to its old self.

[Ever-young]

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

For countries they need to fix what ever they are doing and stop depending on the US dollar as reserve some are already gradually moving their reserve and reliance off the dollar which is good but saying bitcoin is the only safe zone that won’t be accomplished with the limit supply that Bitcoin have and lot of countries who might want to depend on it, if it’s for individuals stacking to escape inflation Bitcoin is the perfect solution, but for countries thru should look for better alternative to strength their economy individual and not to allow it being controlled by the country which currency they put so much value on yet the country manage to over print and increase its supply which in turn contributes to devaluing it.

[shinratensei_]

This is exactly the reason why the market are so bullish with risky assets including bitcoin.
It seems people want to get rid of inflationary things and want to save their wealth somewhere else and bitcoin is one of the option to hedge.

Although I also wonder when will the money printing and m2 supply will stop climbing up.
At some point I'm sure it will stop, but people are already so deep into the hedge against inflation.

[viljy]

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

Yes, you're right, that's the problem. When I gave the example of a "factory" and an "administration," I was referring to the production of relatively simple consumer goods that could technically be returned to the United States within a reasonable time. However, high-tech manufacturing, such as Apple, cannot be moved to the United States within a reasonable time frame.

The production culture has been created for 20 years, and includes not only production lines, but also trained personnel and engineers. There are no such trained personnel in the United States, and the cost of training, and then the salary level, not to mention the duration of staff training, will make the cost of production very high.

[Mate2237]

The effects of the trade war is definitely going to have a negative effects on the u.s economy which will lead to the dollar losing it value on the global market so trump should look for immediate and long term plans to absorb the effect of the trade war because it's going to be having a very bad effect on the economic stability of the united states of America



In this current world we are that is becoming highly unstable with a bitting inflation rate all over the world America is not doing herself any good by proceeding with this unfortunate trade war which to me is also having it negative effects on the United States of America economy

[Yokkattannee]

The effects of the trade war is definitely going to have a negative effects on the u.s economy which will lead to the dollar losing it value on the global market so trump should look for immediate and long term plans to absorb the effect of the trade war because it's going to be having a very bad effect on the economic stability of the united states of America



In this current world we are that is becoming highly unstable with a bitting inflation rate all over the world America is not doing herself any good by proceeding with this unfortunate trade war which to me is also having it negative effects on the United States of America economy

with this trade war it can cause many sectors to be hampered especially the global economy and its effects that will occur, and the US economy is also not free from its impact including trade tariffs that trigger supply chains that will make it difficult for business people. and the dollar will also lose its value slowly especially when investors lose interest in the dollar when economic growth slows down. because export or import transactions use the dollar currency and that can be the trigger.

[pooya87]

Trump is in to default the usa bonds.

If they do default, then it would be the end of dollar and the end of USA.

The problem with living on printing trillions of dollars every season out of thin air creating debt, is that it creates addiction. They can't just magically give up such a large amount of liquidity overnight.

If they default, they won't be able to print anymore, with dollar crashing and burning and budget deficit going through the roof, you'd be lucky to see hyperinflation because it would cause ultrahyperinflation. Meaning in the morning you could fill your gas tank with $500 and by noon it would cost $5000 and by tomorrow it would be $50000. By the end of the month half the population that are already armed to teeth would have had killed each other.

[doomloop]

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.

Which is why people are saying that we need to find an alternative to it ; bitcoin. If we end up with a mistake, then are we just suppose to keep doing the same mistake again? We should be trying to fix it right?

If you one day mistakenly wear your left shoe on your right foot and right shoe on your left foot, would you continue to do that for 50 years? Of course not, you would take it out once you realize it's a mistake, and wear it properly. But for some reason, we made this mistake, in every nation I think, and we kept going. Which means, this "mistake" benefits some people, when it should. Who does it benefit? People who want to grow their companies marketcap, but can't if we do not print more, so the rich are benefiting from this mistake.