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androidsixteen 🌲
@androidsixteen.eth
The US dollar being the world's reserve currency is bad for everyone
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@w
everything has winners and losers, don’t see why this wouldn’t. Was great for US financial industry, for one
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androidsixteen 🌲
@androidsixteen.eth
At what cost? Leads to a lazy / gluttonous finance sector that eats the rest of the economy
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your post said it was bad for everyone, i merely pointed out that wasn’t true. agree there were plenty of losers tech/software/services, fwiw, were all great winners as well. Plan accordingly
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androidsixteen 🌲
@androidsixteen.eth
You’re conflating winning and good :)
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what’s your argument for why it has been bad for finance and tech? and what data do you think backs that up?
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androidsixteen 🌲
@androidsixteen.eth
I think there is a real moral cost to playing the game on easy mode Knowing your government can bail out your bad trades makes you a worse trader and makes the industry more parasitic on the real economy
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so by this logic it has been good for US manufacturers playing on hard mode?
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I generally agree there is a bit of a push and pull with material success and spiritual health, but also idk there will always be parts of the economy with headwinds and parts with tailwinds. I don’t really see how you can say it’s bad for everybody, bc the tailwinds are good economically and bad spiritually and the headwinds vice versa?
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androidsixteen 🌲
@androidsixteen.eth
Winning in an unstable equilibrium is fools gold The issue is not about what side of the imbalance you’re on, it’s simply the fact that running a world economy on the dollar requires an endless vacuum of dollars away from the USA into the rest of the world This is an unstable state and eventually collapses — haggling about who gets a chair is short-sighted
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if the world having a reserve currency is unstable why does it keep recurring?
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androidsixteen 🌲
@androidsixteen.eth
Now you’re conflating inevitable with good 😅
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androidsixteen 🌲
@androidsixteen.eth
Answer to your q: - it hasn’t always been the case. The sterling, franc and mark shared the stage at one point - insiders who benefit from the cantillon effect have a perverse incentive to lobby for it (as they did in bretton woods against economists who recommended a bancor) - coordination costs of maintaining a proper basket currency were higher prior to the tech rails we have now Having done something one way historically is not an indicator of good or correct. What is your argument is other than playing devil’s advocate?
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i think there are very strong network effects from everyone using the same medium of account, which is why it keeps happening. i agree that it comes with a significant responsibility which ultimately corrupts each issuer. I don’t have a strong opinion on whether it should be a single currency vs basket, although the former seems simpler and so probably wins (who governs the basket composition over time? i think you probably end up in the same issue but worse, see current state of international orgs like WTC, WHO, NATO, etc) i am optimistic that btc will become the next global reserve and obviate the cantillion/corruption issue, but i’m sure it’ll have many of its own issues i haven’t thought through yet. Maybe it will only last 100y too
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