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assayer
@assayer
Do we agree with @balajis.eth that geopolitics is like a market where the US is just another company that must "produce" and trade to survive? Or is the US more like a world government, especially since the creation of the petrodollar? To put it simply: the gov doesn't need to produce anything; it uses force to make companies pay taxes for organizing society, and you must pay in their currency. Similarly, the US forces other countries to pay for oil in dollars. This includes oil from US-protected Saudi Arabia. What was Vance's biggest concern in the leaked Signal messages about the attack on Yemen? It was: "If there are things we can do upfront to minimize risk to Saudi oil facilities, we should do it." The world can't just "stop using dollars" because no ruling elite in any country will risk losing access to oil. There's a "milkshake theory" about de-dollarization hitting hardest outside the US (see the video about the petrodollar system's history and future). https://www.youtube.com/watch?v=zHzFLoMLfpA
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saluberis
@saluberis
@balajis.eth is right. You cannot print $USD at the expense of entire world indefinitely. However, I am appalled by Trump's narrative of "being ripped off". Who ripped off whom? You and your kind Mr. Trump, you ripped off your own citizens.
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assayer
@assayer
i agree US cannot print forever but imo just looking at the strength of the US economy and trade balances makes the risk of world dumping the dollars looking much more rational and imminent than it actually is
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