“If we lose the global reserve currency of the dollar, we will turn into a third-world country” — Trump. Is he right? How long will the dollar enjoy its primacy?
https://v.redd.it/2gih8xsc6g4e1
by wakeup2019
“If we lose the global reserve currency of the dollar, we will turn into a third-world country” — Trump. Is he right? How long will the dollar enjoy its primacy?
https://v.redd.it/2gih8xsc6g4e1
by wakeup2019
31 comments
It certainly gives us a huge advantage
Unless there is some way for governments not in the g7 to declare bankruptcy, the dollar will hold its power indefinitely.
It’s the debt that matters, not some mysterious brics crypto currency. The economic structure makes it impossible to get rid of the US dollar
Is he right? No, he just says shit. He is unable to grasp complex concepts and he exaggerates everything to the most extreme position because it makes what he says that much more important.
If countries abandoned the dollar, there would be a recession and inflation but become a third world country? He’s a fucking idiot.. If they do abandon the dollar, he certainly did not help the situation by threatening the world with tariffs. When he tries to emulate the Pinochet regime, that won’t help either.
America is all already a third world country in a first-world. Its sad.
and he’s going to ensure that happens
Temu president.
Dude is honestly the biggest flip flopper I have ever seen lol
He is also a self proclaimed strong crypto advocate, which also poses a threat to the dollar’s primacy. It’s almost like his positions are all over the map.
By threatening to impose tariffs on ***Canada, Mexico and the ENTIRE BRICS countries***, he is impeding the flow of USD, making it costly to trade in USD.
So if other countries hold less USD, he is indeed making sure US Dollars decline faster.
Previously, Trump said the strong dollar was one reason US manufacturers can’t compete with the rest of the world. How does he not see the inverse relationship between weakening the dollar and losing reserve currency status?
JD Vance also believes a weaker dollar is better for the US economy.
By definition, the United States can never be a third-world county. First, second, and third world countries were denoted by alignments in the Cold War. Third world were unaligned to either the west or the USSR. These are not economic designations
And that’s why America needs to stop flirting with the idea of “America First” and remain the world’s policeman.
There is a sound economic theory that states the reason for the US economic dominance is that the world trades on the dollar. If Germany and Brazil make a trade they do it in dollars this injecting US interest into the equation. This is a minor interest on any individual transaction but a major one in the aggregate.
Basically in the above scenario both Germany and Brazil would need to trade their currency for dollars making the US a permanent middle man and cause constant demand for US dollars.
This demand allows the US to print A LOT of money and still see relatively low inflation. It is also why the US has to give away so much money – we hold the world’s currency printing press.
My thought is that if Trump is so worried about loosing our status as the global reserve he should probably stop trying to bully the world.
That’s his belief, then why is he planning and threatening to do everything to make that happen?
It’s rhetorical, it’s because he’s retarded.
He said this so he can blame other countries for his failures. Gotta set the scapegoat up early. He knows (for some strange reason…hopes) that his decisions have a high probability of turning the US into utter chaos.
In the current landscape, I agree with him. Our biggest export is currency followed by oil and gas. If we can’t export currency, we’re in a world of hurt.
If we on-shore production and control our domestic cost of living then reserve currency status is less important; in fact, a weaker currency would make our exports and domestic labor more competitive and we could enjoy some healthy deflation.
# “we will turn into a third-world country”
Well said Mr. President. You go get ’em
As usual with Trump, what’s he’s saying is stupid and ridiculous and even outright false, but there’s a core of truth to it.
“World’s reserve currency” is not as special a status as people think it is. Most countries have currencies, and plenty of those currencies are held in reserve by other countries, so by that definition, there are already a number of “world reserve currencies”. The only thing really special about the US in this age is that more people hold more USD than anything else.
What will take away that status? Obviously, people using and holding dollars less. And quite frankly, there are obvious reasons not to use or hold dollars. In fact, from the perspective of a sovereign country, you NEVER want to use a other country’s currency if you can avoid it. When you are relatively less developed, it can be beneficial in the short term to acquire the currency of a developing country to get critical imports needed to grow. But when it comes to development, “catching up” is always easier than leading the way. So eventually developing countries become developed countries. When they do, they will naturally have to rely on dollars less. So in a sense, de-dollarization is a consequence of development, and to the extent that development is a foregone conclusion, so is de-dollarization. Those who believe we can stop this process fundamentally are deluding themselves. The only reason we were in this position in the first place is because of a World War which left global resources extremely concentrated in the hands of America. Things have been balancing out ever since, and they will continue to, no matter what protectionist policies we try to pursue.
This is, for the most part, a slow and gradual process. There can be dramatic moments, where countries take big actions or make big announcements to reduce dollar usage, but it takes time to actually make these changes. Look at BRICS: one of the stated goals has been to create a new currency bloc that can compete with the US – but actually achieving that will be a monumental political task that cannot happen overnight. Look at the formation of the Eurozone and the creation of the Euro; it happened in gradual steps over a long time, and even when we finally did get the euro there were still massive sustainability issues that had to be addressed – issues that came to a head with the Eurozone crisis and the subsequent reforms.
So yes, de-dollarization is happening and will continue to happen. But it won’t be overnight like the throwing of a switch, and it won’t result in us becoming a third world country. We just won’t be far and away the most powerful and developed country. It’s not like we’re all suddenly going to be living in shacks of concrete and tin, dismantling all of our infrastructure and industries just because China stopped selling for dollars quite as much as they used to.
With this idiot in charge? It will happen faster.
The road you take to avoid your fate will be the cause of it. Going full tyrant with the dollar won’t help.
And yet, he’s implementing a tariff policy designed to do exactly what’s he claims to be worried about. But don’t worry it will be the radical left who caused this to happen.
The way to fix this is *not* by threatening and abusing other countries. This will only expedite our downfall
We have to show the world that we are team players. We have to show them that being our ally *directly benefits* them.
All of Trump’s strongman bs just makes us look even worse than our main competitors/adversaries. Why would anyone want to be associated with us if our only concern is our own country at the expense of everyone else
“I wanna use sanctions as little as possible.”
FTFY:
When I lose the dollar position as global reserve currency, I will finish my task to turn America into a third world country!
I mean 2nd World at best, but that doesn’t explain why the fuck you’re pushing for it.
Yet Trump has talked about replacing the dollar with crypto, which would be an absolute disaster.
The dollar has been in decline for over a decade at this point. His policies will push it further down that path. China is next in line for reserve currency status. Losing that status won’t turn us third world though it just means we won’t have as much pull on the global economy because we won’t have the ability to print the money everyone uses. If y’all want a deep dive on this topic check out Principles for Dealing with the Changing World Order (Why Nations Succeed and Fail) by: Ray Dalio
Toilet, here we come.
If you keep up with your threats and war mongering then we will be screwed you’re creating an issue in order for you to control the population and come out to be the hero….good relations and peace,cooperation and trade homeostasis is essential not you acting like a bully !!!
Well, gosh, Donald, maybe you shouldn’t be so eager to promote cybercurrencies?
We already are in some places
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