China's estimated gold reserves are 3,306,030.80 tons while US estimated gold reserves are 707,010.31 tons. Makes one wonder who is printing money out of thin air and whose money is the most sound. Your premises seem based in old school American exceptionalism to me.
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You're operating under assumption that both China and USA would use their gold reserves to prop up the currency. Yeah they wouldn't though. Paper money hasn't been backed by gold in a long long time. It is extremely reductive to boil down a country's worth to how much gold they have.
Aug 9, 1971 is certainly within my living memory.
Agreed, however it plays a large role in BRICS' evolving goal of creating the new global reserve currency. If "...intra-BRICS commodity trade were to be settled in a commodity-linked basket of currencies among members as well as willing non-members, it would constitute an effective end to the petrodollar..."
Yeah except it wasn't backed in 1971.
Didn't Nixon only prevent foreign redemption?
The real peg was broken back in the WW2 era.
Silver quarters stopped being minted in 1964.
People say Petrodollar like the value of USD hinges on a single commodity.
It doesn't.
In fact I realize that I don't even know what this conversation is about.
USD stops being the world reserve currency.
So what? Why do I care? Doesn't seem like a 'me' problem.
It will not hinge on a single commodity, but likely a basket of commodities going forward.
The main take away is that without demand being driven by being a global currency then that 30+ trillion dollar debt should be unsubstanable.
This is an easy to say when the structuring of the debt isn't taken into account.
It's like blindly stating that 20% yield on HBD is unsustainable because "that sounds right".
There are simply too many variables to consider and dozens of hours of research to be done before any kind of speculation can even be made. And that speculation would probably be wrong anyway as even professional economists haven't the slightest clue what is going on.
30 Trillion dollars debt is only unsustainable if it needs to be paid back.
Does it need to be paid back?
Who does the government owe money to?
A lot of that is bonds... right?
A lot of that is simply USD in circulation... which is really just owed back to retail banks.
I don't own any bonds.
I don't hold significant quantities of USD.
The government doesn't pay me or subsidize my activities.
Again seems like not a 'me' problem.
Seems like a good problem for crypto people to have in the long run.
Although short-term would likely be rough due to crippling recession.
Never meant it to be a problem for you per se. Glad to hear you don't expect to be effected by whatever the outcome may be.
LoL maybe I build a greenhouse just in case 🌿