Article

2023-04-29 Economy

Is De-Dollarization a Real Possibility? Elon Musk concurs

Archived material is restricted to Rantburg regulars and members. If you need access email fred.pruitt=at=gmail.com with your nick to be added to the members list. There is no charge to join Rantburg as a member.

Posted by Bobby 2023-04-29 00:00|| E-Mail|| Front Page|| [10 views ] Top

#1 Why is this important to us? It's beause we love to consume more than we produce (aka work.) And so we run these huge trade deficits with the rest of the world and pay them in greenbacks.

When the dollar is the international currency, they are happy to accept the greenbacks. So as long as our printing presses work, we can consume a lot more than we produce (aka work.)

If the dollar is no longer the international currency, then other countries will not accept just greenbacks. They'll demand that we work and actually produce real goods and services that we can trade to them for the things we import.

In other words, the gravy train will be over.

Posted by Tom 2023-04-29 06:40|| 2023-04-29 06:40|| Front Page Top

#2 Seigniorage. To cross a border you need the other guy's currency or something they will accept. In Ye Olde Days the local goldsmith would weigh the coins, assay the metal content and make the exchange ...easier than today's market. When the US was an industrial powerhouse everybody had a need for our currency --- if not for themselves then someone else would need it for their own trade. With the US deindustrializing there just isn't that need any more.

Posted by magpie 2023-04-29 15:11|| 2023-04-29 15:11|| Front Page Top

23:39 trailing wife
23:21 trailing wife
23:11 Super Hose
23:05 Super Hose
22:50 trailing wife
22:13 Unogum Gonque4345
22:00 Super Hose
21:21 Super Hose
21:13 Frank G
21:06 Super Hose
21:06 Frank G
21:05 Frank G
21:02 Super Hose
20:54 Super Hose
20:44 Super Hose
20:40 Super Hose
20:08 Super Hose
19:28 swksvolFF
19:25 Super Hose
19:24 swksvolFF
19:24 M. Murcek
19:24 Verlaine
19:23 Super Hose
19:19 Frank G
Merry-Go-Blog