The US Dollar is (edit: I should say “has been”) the currency of global trade. Everybody wants it, meaning they can just print more and it won’t lose value. It doesn’t matter how much debt they have as long as that’s the case.
As soon as US bonds are no longer considered “the safest investment”, the USD standard is going to get shaky, and people will probably start looking a lot harder at the Euro.
Except due to the overuse of sanctions and the new trade war bullshit, the dollar is losing that status. There are too many countries that are unable to use dollars at this point for the dollar to remain a reserve currency. This is the beginning of the end.
The US Dollar is (edit: I should say “has been”) the currency of global trade. Everybody wants it, meaning they can just print more and it won’t lose value. It doesn’t matter how much debt they have as long as that’s the case.
That’s not an immutable fact.
As soon as US bonds are no longer considered “the safest investment”, the USD standard is going to get shaky, and people will probably start looking a lot harder at the Euro.
In point of fact, a coordinated sell (or threat to sell) US bonds across several large countries and the EU was what actually made orangeboi back off on the tariffs initially. That is 4D geoeconomic chess, not this whinging about tariffs and revival of idiotic protectionist policies.
That is correct. But it’s not happening because of debt, and that’s all I was saying.
Except due to the overuse of sanctions and the new trade war bullshit, the dollar is losing that status. There are too many countries that are unable to use dollars at this point for the dollar to remain a reserve currency. This is the beginning of the end.
True. Which is why they lost their rating I guess. I was just commenting on why national debt isn’t a real indicator of anything.