The fate of the world's currencies in the wake of the demise of the dollar. - page 29
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In that case, I hasten to reassure you. Obviously you were inattentive again, and here's what you didn't understand from what you read;
P.S.In that post I shared my thoughts on the subject of the U.S. national debt. I suggested what the consequences might be.
There is no talk of a collapse.
By the way, don't you think the situation is precarious?
I'm not paying attention again... This is the second time you have confused yourself with me.
I'm not paying attention again... This is the second time you've confused yourself with me.
No, I'm not. God be with you.
The nominal size of government debt is irrelevant - it is only the ratio of government debt to GDP that matters, and the EU, Japan, Switzerland and other countries have an even higher ratio.
You wrote about it above and gave some statistics.
What do you want to say?
I have not tried to argue or otherwise disagree with you.
Why are you showing me these statistics?
What are you trying to tell me?
I didn't show you that, another person showed you that.
He wanted to tell you that the "situation" with the US national debt is not "threatening".
I didn't show you that, another person showed you that.
He wanted to tell you that the "situation" with the US national debt is not "threatening".
.....................
P.S.
By the way, don't you consider the position to be precarious?I was wrong - not "threatening" but "precarious".
It is not.
I've already speculated about the US national debt.
I was already thinking about the special undervaluation of the dollar in order to pay off the debt. I was also thinking about the German gold that the Americans had ditched them on. And the private structure of the Fed, for which the government is not responsible.... But it all comes back to each other... A vicious circle. After all, the authorities must see the danger in the excessive undervaluation of the dollar. Otherwise, it will inevitably lead to social unrest and severe domestic tensions. Households will be hit by the low purchasing power of the currency. Wages can no longer support the same standard of living. And if you just get rid of the dollar as national currency, telling the world that "We have pulled off the biggest con of the last two centuries! And from this day forward, the United States Government outlaws the Fed! The U.S. dollar issued by this organization is no longer the national currency of payment!" ...
All right. Even so. But it still does not make the USA debt-free. U.S. debt can be denominated in any currency. If you do not have dollars, pay with sterling or Swiss francs. Even in gold (for sure they took the gold from someone else besides the Germans).
And just tell the whole world that "We, the United States of America, don't owe anybody anything". - That's not realistic either. We all know that Americans are not lazy in general. They are industrious people, albeit hot-headed. The financial power of America is a whole industry in the field of investment. If they say so, they will lose investor confidence. Investors will turn to emerging markets, where there is still development potential. And after saying that, America could lose all of its power overnight. Partners will turn away as if they were an unscrupulous companion.
By the way, even despite the monstrous national debt, even despite the geopolitics and other difficulties in which the U.S. is stuck, U.S. government bonds are still considered one of the safest investments. Why do you think?
So in thinking about it, I like to take my time. And it seems to me that many analysts probing the ground in this matter prefer, or rather understand, that predicting the future of the U.S. dollar is a utopian exercise.
Fortunately there is time. And it will show in detail.
That's just plain creepy.
Isn't losing your power a collapse?
I was wrong - not "threatening" but "precarious".
It is not.
Unfortunately, I have to say that the dialogue with you is not productive. Because instead of talking about the body of the problem, you've gone to individual words. It seems that you deliberately do not see the full meaning of the written words. What's more - you deliberately switch the dialogue to separate words taken out of context.
Well, it's your day off, and you're probably just having fun.
After several pages of pointless argument, you finally got back to my reasoning for the future of the American dollar yourself. Where I cannot agree with any of the above scenarios.
That's just plain creepy.
Losing your power isn't a downfall?
Oh, you mean...! Well... So much fuss over nothing.
Well, now we can have a productive conversation.
See for yourself, it's just an assumption on reflection, not an assertion.
And when a debt is not repaid, will you continue to deal with that person?
That is why I have assumed that such an outcome is not desirable for the USA, because so far they have not lost the trust of investors. At least when you consider the demand for US bonds. Also, I suggested that a severely undervalued national currency (collapse) could play a bad role as part of the social tension in the country...
As you can see you yourself have made a big deal out of it.
Better, for everyone's benefit, would have bothered to argue your expert opinions on the vitality, or otherwise, of the US dollar.