Tom Paine 1949
Diamond Member
- Mar 15, 2020
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I would love to see an end to U.S. balance of trade deficits ...
BUT that is very unlikely to happen so long as the U.S. insists on maintaining its dollar supremacy in world trade. The Triffin Paradox — Triffin dilemma - Wikipedia — means that a country whose currency dominates global trading must almost necessarily run trade deficits. The exception being conditions like after WWII, when there was no serious competition to U.S. products on world markets. The global supremacy of the dollar means we can “monetarize” all our debts, use our fiat money on world markets without limit, exploit weaker economies via keeping them in debt and subservient to our finance capital. It has proven profoundly corrupting of our society, which moreover is addicted to meddling overseas to protect this monopoly and way of life.
Harder work, more education, less Wall Street speculation and crony capitalism, less waste and more institutional efficiency — these are what is needed to improve U.S. competitiveness. MORE not less world economic and financial integration is needed. Less U.S. imperialism. Of course adjustments can be made along the way, tariffs put in place here or there, but dollar supremacy in the end will likely fade, and so will the relative weight of American economic and military power. China and the RMB is not ready to replace the U.S. and the Dollar — and never will be if we act intelligently. But the days of Federal Reserve ability to monetarize U.S. debts unilaterally is coming to an end.
What do you think?
BUT that is very unlikely to happen so long as the U.S. insists on maintaining its dollar supremacy in world trade. The Triffin Paradox — Triffin dilemma - Wikipedia — means that a country whose currency dominates global trading must almost necessarily run trade deficits. The exception being conditions like after WWII, when there was no serious competition to U.S. products on world markets. The global supremacy of the dollar means we can “monetarize” all our debts, use our fiat money on world markets without limit, exploit weaker economies via keeping them in debt and subservient to our finance capital. It has proven profoundly corrupting of our society, which moreover is addicted to meddling overseas to protect this monopoly and way of life.
Harder work, more education, less Wall Street speculation and crony capitalism, less waste and more institutional efficiency — these are what is needed to improve U.S. competitiveness. MORE not less world economic and financial integration is needed. Less U.S. imperialism. Of course adjustments can be made along the way, tariffs put in place here or there, but dollar supremacy in the end will likely fade, and so will the relative weight of American economic and military power. China and the RMB is not ready to replace the U.S. and the Dollar — and never will be if we act intelligently. But the days of Federal Reserve ability to monetarize U.S. debts unilaterally is coming to an end.
What do you think?
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