LibertyGal on Nostr: Right now foreigners hold a lot of USD either in the bank or by holding US bonds. ...
Right now foreigners hold a lot of USD either in the bank or by holding US bonds. When they get rid of them (by buying US products and not holding it again) you get lots of USD chasing our little production. Some will probably do well when the money initially comes back to the US because they will sell products for more, but it won't take long for inflation to hit.
Yes the US exploits people (Americans and non-Americans) and yes the US politicians have bought votes with taxpayer dollars, but none of that changes the fact that we will have tons of dollars chasing a small amount of production (The US really doesn't produce much of value based on the size of its economy) The US has been able to do a lot of things other nations can't because of the US controlling the world reserve currency, but that advantage is quickly coming to an end. Them weaponizing the currency against their enemies is speeding that process.
Yes the US exploits people (Americans and non-Americans) and yes the US politicians have bought votes with taxpayer dollars, but none of that changes the fact that we will have tons of dollars chasing a small amount of production (The US really doesn't produce much of value based on the size of its economy) The US has been able to do a lot of things other nations can't because of the US controlling the world reserve currency, but that advantage is quickly coming to an end. Them weaponizing the currency against their enemies is speeding that process.