The argument that the erosion of the dollar’s global status could benefit the US is gaining traction in Washington. That move would be a needless act of self-harm.
It won’t benefit the US at all, but Trump thinks it will make his crypto worth more dollars
I doubt Trump thought that far but his posse of inside traders certainly did. And they’re (probably) right.
BTC will never replace the petrodollar, but already acts as a refuge asset exactly like gold. It is valuable because it is reliably scarce and reliably in demand. It is not unreasonable that with US bonds cratering and the fed causing Turkish levels of inflation on Trump’s orders, some investors would divert some of that money to (perceived) alternatives such as gold and crypto. Much to the pleasure of Trump’s buddies.
What’s bizarre to me is that a lot of billionaires not close to the Trump syndicate will be getting fucked on the collapse of the US economy and it’s hard to believe they are getting a better deal than under Biden when the stock market was booming and they could already buy politicians and newspapers for relative peanuts. The supposed deep state is doing a really bad fucking job of fighting for its own survival.
And his friend’s assets
“I’ll make you more money, you do some things for me.”
Didn’t he get impeached for…oh, right, Republicans were fine with all that once they got around to admitting it happened.
“he learned his lesson”
The world needs a neutral reserve currency, not controlled by any one nation.
Wait, is that not what my Pokemon Cards are?!
It’s Beanie Baby time finally!
How?
Some kind of international organization needs to issue and manage a reserve currency. Maybe the world’s various banks need to come together and form a global central bank that issues the currency.
They’re called SDR and issued by the IMF and aren’t used by anyone. Next best thing is gold or bitcoin
SDR isn’t a currency, it’s a reserve asset. I know you might be thinking, “well, gold is a reserve asset and a currency,” but go down to your local supermarket and try paying for your groceries with like 1/10 of an ounce of gold and see how that works out for you.
the view of some within the Trump administration that the reserve currency status of the dollar is more of a burden to the US economy than a blessing.
Obviously the Trump administration is dominated by economic morons.
I’m sure China and EU would gladly take that “burden” off USA. And while that makes the USD decline, it will increase inflation in USA, both because imports are more expensive, but also because American goods will be worth more on export markets and be more favorable to American companies to sell outside USA, again increasing prices in USA to compete with the more attractive export market. So the result is to either export, or sell at home at higher prices.The selling off of USD will also increase interest rates, making it more expensive to pay interest on federal and other public debts.
Together with a less attractive home market this will cause investments to drop. We actually saw that already 2 days after the insane tariffs were announced, and they had only been in force for a few hours!!!But yes I can see how it must be confusing to the morons in the Trump administration whether the reserve currency is more a burden than an advantage. Because everything is confusing to them, but somehow they still manage to always make the wrong decisions. If it was mere stupidity, it should be closer to 50/50!! So maybe something else is going on too?
Russians whisper this shit into their pea brains and they believe it. They think these ideas are their own. It works on normies and it works on high-status people as well.
Pfft…
They don’t need Russians…
They have Ron Vara. The only so-called “economist” in the world that agrees with Mafia Don Mangolini’s ideas on tariffs.
🙄 🤡 🖕 🖕
China yes but I can’t see other countries picking it up, broadly because they have a closed capital account so the inability to freely move CNY is a massive hurdle. EUR doesn’t have that problem but there aren’t enough EUR around to satisfy demand (you need to run consistent deficits to be a reserve currency).
You’re right though about being a reserve currency. It actually is both a blessing and a curse, but clearly until this point the US thought it more a blessing…
you need to run consistent deficits to be a reserve currency
Yes and of course the advantage depends on how that is managed. If you don’t use it to invest, the advantage isn’t as great. But it creates a huge amount of
surplusinflux to the economy, that stimulates economic development.
Everyone around the world needs to start selling their US bonds. Call in every single one. Fucking tank them.
Got any eddys to spare, choom?
How long till the corpo wars?
Just give me Panam already. I need my pipes cleaned and my engine fixed.
This right here is what it’s about.
PetroEuro when?
