nicodemus on Nostr: He’s a counter to the narrative that orgs like BRICS will lead to the death of the ...
He’s a counter to the narrative that orgs like BRICS will lead to the death of the dollar:
The Cantillon Effect is pretty clear about the advantages of proximity to money printing. This means the US will continue to be a dominant consumer in the global economy, if not THE dominant consumer. And we have dollars. This creates a degree of demand in and of itself.
This means other countries have less purchasing power, and thus the costs of their debts are therefore higher. This, alone, creates demand for the dollar and treasuries. This offsets a percentage of the dollar’s debasement - as it’s all about supply vs demand.
The petrodollar agreement and the the later Eurodollar agreements (plaza and louvre accord) helped kickstart this feedback loop.
As things like global recessions, global debt unwinds (like the yen carry trade or Chinese real estate investment), this exacerbates the issue. The dollar may be impacted, but it’s impacted less than other countries. Other countries have much thinner margins - room for error - before they have to seek a more stable currency like the dollar.
And so demand continues to build.
Again, the Cantillon Effect is clear. Those furthest away from the money printer suffer the most - driving them to struggle to get closer to the printer (and get dollars).
Demand for the dollar is only going to strengthen. This enables the shitheads in the treasury department to continue to print. So long as their printing doesn’t outpace demand, this will continue until we reach the inflection point for hyperinflation.
It’s OTHER countries that need to adopt bitcoin in order to preserve their purchasing power - El Salvador style.
The US will be the last to adopt bitcoin.
The Cantillon Effect is pretty clear about the advantages of proximity to money printing. This means the US will continue to be a dominant consumer in the global economy, if not THE dominant consumer. And we have dollars. This creates a degree of demand in and of itself.
This means other countries have less purchasing power, and thus the costs of their debts are therefore higher. This, alone, creates demand for the dollar and treasuries. This offsets a percentage of the dollar’s debasement - as it’s all about supply vs demand.
The petrodollar agreement and the the later Eurodollar agreements (plaza and louvre accord) helped kickstart this feedback loop.
As things like global recessions, global debt unwinds (like the yen carry trade or Chinese real estate investment), this exacerbates the issue. The dollar may be impacted, but it’s impacted less than other countries. Other countries have much thinner margins - room for error - before they have to seek a more stable currency like the dollar.
And so demand continues to build.
Again, the Cantillon Effect is clear. Those furthest away from the money printer suffer the most - driving them to struggle to get closer to the printer (and get dollars).
Demand for the dollar is only going to strengthen. This enables the shitheads in the treasury department to continue to print. So long as their printing doesn’t outpace demand, this will continue until we reach the inflection point for hyperinflation.
It’s OTHER countries that need to adopt bitcoin in order to preserve their purchasing power - El Salvador style.
The US will be the last to adopt bitcoin.