The Future of the US Dollar
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- OneTrickPony
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The Future of the US Dollar
In these unprecedented times of vast fiat creation, I was wondering how everyone sees fiat performing in the future?
Here's a video that condenses 20th century US fiat history into a few minutes with a possible future scenario as depicted by M Maloney.
Here's a video that condenses 20th century US fiat history into a few minutes with a possible future scenario as depicted by M Maloney.
Up the workers!
Quantitative easing (=printing money) cannot go on indefinitely without creating inflation and a loss of confidence in the currency.
It'll be accelerated when Chinese imports are taxed even more or banned outright.
Yet another direct damaging consequence of Trump's incompetence.
Gold, property, the stock market will benefit while those holding regular bank accounts will be screwed ever more. That stimulus cheque (with his name on it, WTF?) is a smokescreen like everything don the con has been doing.
It'll be accelerated when Chinese imports are taxed even more or banned outright.
Yet another direct damaging consequence of Trump's incompetence.
Gold, property, the stock market will benefit while those holding regular bank accounts will be screwed ever more. That stimulus cheque (with his name on it, WTF?) is a smokescreen like everything don the con has been doing.
Well if they didn’t do QE then what’s the options?
Certainly not QT.
Certainly not QT.
pew, pew, pew, pew!
Just kick out the Republicans from being in charge.
Just have a look at the US national debt vs. the political color in charge and you'll see, that each time the Republicans do get in the White House, the debt goes up skyrocket and in the subsequent 8 years of Democrats in charge, the debt goes down, slowly.
Somehow, Republicans do think, they can live on a Ponzi scheme based government spending.
All the countries with (past and current) hyperinflation can be characterized as having a Bokito as head of state. With the bad side, those having to pay for the uber spendings, are usually the ones having voted the Bokito his position.
And this Covic-19 time, it's terrible for the US, because Trump did spend his fortune cookies, right at the start of his presidency, just to try to gain popularity. It gave economic growth, unfortunately only based on debts, which kicks-back, when the debts have to be repaid.
And now again, a huge amount of money has been shoveled into the US economy. Partly as a loan, though also huge amounts "just granted". The best receipt for a future financial failure......
Just have a look at the US national debt vs. the political color in charge and you'll see, that each time the Republicans do get in the White House, the debt goes up skyrocket and in the subsequent 8 years of Democrats in charge, the debt goes down, slowly.
Somehow, Republicans do think, they can live on a Ponzi scheme based government spending.
All the countries with (past and current) hyperinflation can be characterized as having a Bokito as head of state. With the bad side, those having to pay for the uber spendings, are usually the ones having voted the Bokito his position.
And this Covic-19 time, it's terrible for the US, because Trump did spend his fortune cookies, right at the start of his presidency, just to try to gain popularity. It gave economic growth, unfortunately only based on debts, which kicks-back, when the debts have to be repaid.
And now again, a huge amount of money has been shoveled into the US economy. Partly as a loan, though also huge amounts "just granted". The best receipt for a future financial failure......
If you look back through history, you'll see over 500 dead paper currencies.
Every paper currency in history has failed, no survivors which carry through to today.
British Sterling (one pound of silver by weight) is still alive today.
What makes you think this time is different.
Every paper currency in history has failed, no survivors which carry through to today.
British Sterling (one pound of silver by weight) is still alive today.
What makes you think this time is different.
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- OneTrickPony
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There are a few analysts who are predicting a change to the Yuan as the new reserve currency . They predict it will be in digital form.
China has stated that it is vying to replace the Dollar in Asia. They are hoping to export more Yuan and stop re-exporting dollars, which will challenge the Dollar system creating likely more volatility in the Dollar than even Bitcoin has.
They reckon there will be two zones: one Dollar based, one Yuan based.
China would need, as the biggest importer and exporter, is to invoice more product in the Yuan both internally (Chinese led supply chains) and externally, which would give China more scope to create its own credit market but would need to open up its bond markets to international investors.
A large economy, geopolitical strength, a strong military presence, fiscal stability, and depth of liquidity in financial markets they say are required to be contenders to achieve reserve currency status globally.
The US has the military presence and geopolitical strength, but, since the Corona virus, China has more fiscal stability. The US wins on liquidity (atm), and if China wants to challenge that, it needs to develop its financial markets.
China has stated that it is vying to replace the Dollar in Asia. They are hoping to export more Yuan and stop re-exporting dollars, which will challenge the Dollar system creating likely more volatility in the Dollar than even Bitcoin has.
They reckon there will be two zones: one Dollar based, one Yuan based.
China would need, as the biggest importer and exporter, is to invoice more product in the Yuan both internally (Chinese led supply chains) and externally, which would give China more scope to create its own credit market but would need to open up its bond markets to international investors.
A large economy, geopolitical strength, a strong military presence, fiscal stability, and depth of liquidity in financial markets they say are required to be contenders to achieve reserve currency status globally.
The US has the military presence and geopolitical strength, but, since the Corona virus, China has more fiscal stability. The US wins on liquidity (atm), and if China wants to challenge that, it needs to develop its financial markets.
Up the workers!
Whatever Trump does he is always wrong, didn't you get the memo?
None but ourselves can free our mind.
I would not need a memo for that. It's outright clear, he does use the same tactics as Hitler in the upcoming Nazi dictatorship.
So are you saying Hitler was an agent of Stalin?
Or did we disband the Russia/Putin hoax to return to screeching "Trump is literally worse then HItler!!!!" ?
None but ourselves can free our mind.
Wow. No matter what the thread Trump often gets brought up (some are obsessed) but the Hitler one is new!
He runs the USA like a business and he’s got a pretty good track record.
We seem to have some fiscal geniuses on 440, but they’ve ended up in Cambodia instead of Monaco.
He runs the USA like a business and he’s got a pretty good track record.
We seem to have some fiscal geniuses on 440, but they’ve ended up in Cambodia instead of Monaco.
pew, pew, pew, pew!
how many china currencies are there? they cant make up their minds. pegged to the usd and allowed to be manipulated through the generosity of the usa.
slowly but surely china is being blockaded and banned out of economic existence.
china has 2 friends, the democratic republic of north korea and the philippines.
even australia doesnt give a shit about the latest round of chinese protectionism as they would prefer the usa and europe to be their major trading partners.
the sooner everyone blows off china the safer we will all be.
never trust a commie.
slowly but surely china is being blockaded and banned out of economic existence.
china has 2 friends, the democratic republic of north korea and the philippines.
even australia doesnt give a shit about the latest round of chinese protectionism as they would prefer the usa and europe to be their major trading partners.
the sooner everyone blows off china the safer we will all be.
never trust a commie.
- Starving Pelican
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I highly doubt that'll happen. As someone else pointed out, the RMB is essentially valued at whatever the Chinese government wants the value to be. There's consistency to its value in a sense, but the government could halve its value overnight and nothing could be done.kungfufighter wrote: ↑Fri May 22, 2020 10:10 pm
China has stated that it is vying to replace the Dollar in Asia.
Plus I don't see many asian countries taking kindly to the use of RMB. The USD is an abstract value from a country far away; use of the RMB indicates the dominance of a neighbour. Stranger King theory and all that. Plus don't underestimate the lack of trust Asia has when it comes to China.
I'd recommend reading the interview with Chris Pattern in The Times today.
https://www.thetimes.co.uk/edition/news ... -bcrj5qq7d
If anyone know the Chinamen it is Pattern. A couple of excerpts:
“What we are seeing is a new Chinese dictatorship,” he says. “I think the Hong Kong people have been betrayed by China, which has proved once again that you can’t trust it further than you can throw it . . . The British government should make it clear that what we are seeing is a complete destruction of the Joint Declaration.”
“China cheats, it tries to screw things in its own favour, and if you ever point this out these ‘wolf warrior’ diplomats try to bully and hector you into submission. It’s got to stop otherwise the world is going to be a much less safe place and liberal democracy around the world is going to be destabilised.”
In language reminiscent of the cultural revolution, the Chinese foreign ministry said this week that Lord Patten would be “pinned to the pillar of shame” for centuries to come and compared him to “spit”. The peer retorts that the Communist government is behaving like a “frightened bully” because its attempt to cover up the seriousness of the coronavirus outbreak has been exposed.
In this country Lord Patten thinks that successive governments have fallen for a myth about the economic benefits of cosying up to China. “We should stop being fooled that somehow at the end of the all the kowtowing there’s this great pot of gold waiting for us. It’s always been an illusion. When I was first negotiating with China, a friend of mine said to me: ‘If the Chinese screw you once, you’re a new friend of China, if they screw you twice, you’re an old friend of China’. We keep on kidding ourselves that unless we do everything that China wants we will somehow miss out on great trading opportunities. It’s drivel.”
https://www.thetimes.co.uk/edition/news ... -bcrj5qq7d
If anyone know the Chinamen it is Pattern. A couple of excerpts:
“What we are seeing is a new Chinese dictatorship,” he says. “I think the Hong Kong people have been betrayed by China, which has proved once again that you can’t trust it further than you can throw it . . . The British government should make it clear that what we are seeing is a complete destruction of the Joint Declaration.”
“China cheats, it tries to screw things in its own favour, and if you ever point this out these ‘wolf warrior’ diplomats try to bully and hector you into submission. It’s got to stop otherwise the world is going to be a much less safe place and liberal democracy around the world is going to be destabilised.”
In language reminiscent of the cultural revolution, the Chinese foreign ministry said this week that Lord Patten would be “pinned to the pillar of shame” for centuries to come and compared him to “spit”. The peer retorts that the Communist government is behaving like a “frightened bully” because its attempt to cover up the seriousness of the coronavirus outbreak has been exposed.
In this country Lord Patten thinks that successive governments have fallen for a myth about the economic benefits of cosying up to China. “We should stop being fooled that somehow at the end of the all the kowtowing there’s this great pot of gold waiting for us. It’s always been an illusion. When I was first negotiating with China, a friend of mine said to me: ‘If the Chinese screw you once, you’re a new friend of China, if they screw you twice, you’re an old friend of China’. We keep on kidding ourselves that unless we do everything that China wants we will somehow miss out on great trading opportunities. It’s drivel.”
TheGrimReaper wrote: ↑Mon Sep 02, 2019 1:45 pmSlavedog, you do not belong on this forum as you talk too much sense.
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- OneTrickPony
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@ pelican
That all depends on confidence, or more importantly, loss of it.
The US have been devaluing the Dollar since 1913. It's down below it's 2008 0.2c relative to 1913 purchasing power.
The previous QE rounds and recent creation of three trillion for the first quarter have devalued it even further. There is a very high chance that their will be trillions more of dollar creation to come in the next three quarters.
There will come a time when people suddenly realise that the dollar's purchasing power, and all the other currencies currently being created, will not be worth the paper they're printed on (so to speak). You may well be right that the Asians as a whole don't trust China, and if they can't get over themselves, what other form of a real store of value can they turn to?
Precious metals and Bitcoin. Gold is not as portable as Bitcoin. I expect people will be more inclined to have faith in the Chinese Yuan crypto backed by its economy, but I expect a lot to turn to precious metals and Bitcoin. With Paul Tudor Jones recently investing 2% of his company's portfolio in Bitcoin, I can see it as being a real contender. Once it gets its market cap over a trillion, it's bombs away. Probably literally.
Keep an eye on US national debt
https://usdebtclock.org/
That all depends on confidence, or more importantly, loss of it.
The US have been devaluing the Dollar since 1913. It's down below it's 2008 0.2c relative to 1913 purchasing power.
The previous QE rounds and recent creation of three trillion for the first quarter have devalued it even further. There is a very high chance that their will be trillions more of dollar creation to come in the next three quarters.
There will come a time when people suddenly realise that the dollar's purchasing power, and all the other currencies currently being created, will not be worth the paper they're printed on (so to speak). You may well be right that the Asians as a whole don't trust China, and if they can't get over themselves, what other form of a real store of value can they turn to?
Precious metals and Bitcoin. Gold is not as portable as Bitcoin. I expect people will be more inclined to have faith in the Chinese Yuan crypto backed by its economy, but I expect a lot to turn to precious metals and Bitcoin. With Paul Tudor Jones recently investing 2% of his company's portfolio in Bitcoin, I can see it as being a real contender. Once it gets its market cap over a trillion, it's bombs away. Probably literally.
Keep an eye on US national debt
https://usdebtclock.org/
Up the workers!
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