Will Sanctions End the Dollar's Global Reserve Currency Status?

[georgephillip]

God save us from quack economists and their half baked ideas

free trade and loss of American manufacturing jobs are the primary cause of the balance of payment deficit

US elites willingness to to export jobs by running persistent trade deficits is the main reason the US dollar functions as the global reserve currency.

Anyone running a trade surplus with the US winds up with holding US dollars in their central bank:

Dollar Recycling | Michael Hudson

"For these central banks, the inflow of surplus dollars poses the problem of what do we do with them.

"Central banks don’t buy stocks and bonds, or control of corporations, because that is risky and also does not directly help their own economy.

"So central banks buy US Treasury bonds and bills – IOUs of the U.S. Government.

"For the United States, the money that is spent on running a balance-of-payments deficit on military account and on American investors buying Chinese stocks and Chinese companies, dollars are recycled back to the United States to buy US Treasury bonds."

 

[georgephillip]

God save us from quack economists and their half baked ideas

Hudson has been working as an economist for over half-a-century. A significant number of those years were spent working with Herman Khan at the Hudson Institute (if that tells you anything).

Michael Hudson (economist) - Wikipedia

"Hudson graduated from the University of Chicago (BA, 1959) and New York University (MA, 1965, PhD, 1968) and worked as a balance of payments economist in Chase Manhattan Bank (1964–1968).

"He was assistant professor of economics at the New School for Social Research (1969–1972) and worked for various governmental and non-governmental organizations as an economic consultant (1980s–1990s).[2]

"Hudson has devoted his career to the study of debt, both domestic debt (loans, mortgages, interest payments), and external debt.

"In his works, he consistently advocates the idea that loans and exponentially growing debts that outstrip profits from the real economy are disastrous for both the government and the people of the borrowing state as they wash money (payments to usurers and rentiers) from turnover, not leaving them funds to buy goods and services, thus leading to debt deflation."

 

[Mac-7]

Private citizens benefitted from government land grants for railroad construction, homesteads, and state universities.

Sure

thats called limited government involvement

no one object to sensible government

 

[Mac-7]

US elites willingness to to export jobs by running persistent trade deficits is the main reason the US dollar functions as the global reserve currency.

The trade deficit is caused by fed policy that allows cheap products from china into our market

thats a government screwup

 

[georgephillip]

Keynesianism is designed to fail by default.

That time is nearing. And it only takes one white crow to demonstrate that reality. And that time is now.

Keynesianism gave way to Milton Friedman's version of "horse and sparrow" economics over forty years ago:

"The economist John Kenneth Galbraith noted that 'trickle-down economics' had been tried before in the United States in the 1890s under the name 'horse-and-sparrow theory', writing:

"Mr. David Stockman has said that supply-side economics was merely a cover for the trickle-down approach to economic policy—what an older and less elegant generation called the horse-and-sparrow theory: 'If you feed the horse enough oats, some will pass through to the road for the sparrows.'"

https://en.wikipedia.org/wiki/Trickle-down_economics#:~:text=David%20Stockman%20has%20said%20that,'

 

[georgephillip]

I noticed Biden just signed an Executive Oder to explore creating a central banking digital currency.

Heh heh. Now, why would he do that, I wonder?

Rich People Always Need More?

What's next after Biden's crypto order.

"Federal Reserve Chair Jerome Powell has repeatedly said the central bank would not move forward on the creation of a digital dollar without a clear mandate from Congress and/or the White House. Now it has one.

"In his executive order on Wednesday, President Biden deemed the development of a U.S. central bank digital currency a matter of 'national interest' and directed the Fed to draw up a governmentwide plan of attack for implementation"

If the Fed ultimately issues a CBDC it will be the first time in a century that America has released an entirely new currency.

Biden's White House is expected to propose such a plan by years end.

Biden's plan for a digital dollar is a massive threat to freedom | Opinion

 

[georgephillip]

The trade deficit is caused by fed policy that allows cheap products from china into our market

thats a government screwup

Governments controlled by the investor class (>10% of Americans) over the past forty years have all been defined by blocs of major investors whose sole aim to increase private profits for their minority by socializing the costs on 90% of citizens.

This is why millions of middle class jobs left the country without any significant compensation for US workers who were left behind.

Investment theory of party competition - Wikipedia.

"The central claim of the Investment Theory is that since ordinary citizens cannot afford to acquire the information required to invest in political parties, the political system will be dominated by those who can.

"As a result, the investment theory holds that rather than being seen as simple vote maximizers, political parties are best analyzed as blocs of investors who coalesce to advance candidates representing their interests.[6]"

 

[Mac-7]

Governments controlled by the investor class (>10% of Americans) over the past forty years have all been defined by blocs of major investors whose sole aim to increase private profits for their minority by socializing the costs on 90% of citizens.

This is why millions of middle class jobs left the country without any significant compensation for US workers who were left behind.

Investment theory of party competition - Wikipedia.

"The central claim of the Investment Theory is that since ordinary citizens cannot afford to acquire the information required to invest in political parties, the political system will be dominated by those who can.
View attachment 619061
"As a result, the investment theory holds that rather than being seen as simple vote maximizers, political parties are best analyzed as blocs of investors who coalesce to advance candidates representing their interests.[6]"

Thats gibberish

the investor class is smart enough to make money in spite of government bungling

the politicians made a decision to export jobs for a variety of reasons due to their own selfish interests

and the investors modified their investments accordingly

 

[Donald H]

It's no longer up to America to decide. This past year and the disaster that is Biden, particularly in regards to overbearing sanctions on Russia, have pushed this to the limit. We cannot wage war on people and make them accept our currency, that's ludicrous.

Unfortunately, America is what's in Biden's head now.

 

[georgephillip]

the investor class is smart enough to make money in spite of government bungling

the politicians made a decision to export jobs for a variety of reasons due to their own selfish interests

You mean like campaign donations?

Investment theory of party competition - Wikipedia

"...political parties must take positions that enable them to attract the investment required to run successful campaigns.

"This is the case even if those positions are not supported by the majority of the population, since it is futile for a party to adopt even a popular position if it cannot afford the expense of communicating that position to the electorate in an election campaign.[8]

"In fact the Investment theory predicts that in many cases political parties are more likely to try and change the position of the public to match those of its investors than vice versa"

 

[JohnDB]

Saudis are going to switch from Euros to Yuan for petroleum purchases....
That's going to weaken the Euro and strengthen the Yuan. To the point that exports from China become expensive... extremely expensive.

While European goods and American goods are inexpensive by comparison. But they will be considered much better quality.

 

[LordBrownTrout]

Doubtful, but the global currency will soon be some type of digital blockchain under control of the one world order where every transaction will be locked in and confirmed.