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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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Jordan Olmstead
@ruminations
I lean towards the latter — u.s. spending on “security” yields all sorts of favorable economic arrangements for the us which the former camp does not appreciate or underappreciates
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Claireccc
@claireccc
btw, I don’t think Trump is not really alienating allies, he is simply bargaining and trying to secure more benefits for the U.S. in dealing with the deficit.
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Claireccc
@claireccc
Even if Trump were to regain control over oil in the Middle East, this control would not last long unless the U.S. maintains its military hegemony. Ultimately, the key question is: Can the U.S. produce more advanced weapons faster and at a lower cost than other countries? Currently, the answer is no. This is not only because the U.S. lacks a fully integrated industrial base like China but also because labor costs in the U.S. are significantly higher, and its innovation advantage is no longer far ahead of other countries.
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