The problem is the dollar. While international trade is in US dollars, US can dominate global economy. But Trump is trashing dollar and promoting crypto. How long will the dollar remain default currency? I think when dollar loses its value, USA economy will crash harder than any crash in history. Wheelbarrows of dollars will not buy matches. Will another traditional currency replace the dollar or is dollar’s fall a sign that the old system no longer works for any currency. How does economics function after money fails? Are we all going to have to use crypto? How does that work? I hope some expert in economics has worked out a plan. I doubt they have though, this is all unchartered territory.
When the same happened to the Zimbabwe currency - I have a friend who keeps a trillion dollar note in his wallet - they switched to US dollars. When the US economy crashes out something similar will happen.
I hope. Maybe Euro, maybe PRC’s renminbi. We’ll see.
I just wondered, give how US dollars is world’s ‘reserve currency’ (since 1944 Bretton Woods pact), how its crash might affect the whole of global trade (it must hurt more than failure of a national currency like Zimbabwe’s since it is a reserve currency and has a special role in the world). Will we get another reserve currency or has the world economy changed so much that we will get a new way of doing business with no reserve currency or multiple competing reserve currencies? I think we are in uncharted territory so its hard to predict…
I doubt it’ll be any of the BRICS currencies, although my only knowledge of that stuff is what I get from Peter Zeihan vids on YT. His rather amusing take on that is that each nation only wants to be in it if they can run it, which obviously isn’t going to work. The Euro is already proven to work across multiple nations and 32% more people than the USA, it’s only idiots like us Brits that won’t use it “bEcAuSe SoVeReIgNtY”.
Watching the dollar crash will certainly be interesting…
An expert in economics saw the same problem and did work out a plan in 2009. Trump is trying to jump on the bandwagon of something much bigger than him.
The problem is the dollar. While international trade is in US dollars, US can dominate global economy. But Trump is trashing dollar and promoting crypto. How long will the dollar remain default currency? I think when dollar loses its value, USA economy will crash harder than any crash in history. Wheelbarrows of dollars will not buy matches. Will another traditional currency replace the dollar or is dollar’s fall a sign that the old system no longer works for any currency. How does economics function after money fails? Are we all going to have to use crypto? How does that work? I hope some expert in economics has worked out a plan. I doubt they have though, this is all unchartered territory.
When the same happened to the Zimbabwe currency - I have a friend who keeps a trillion dollar note in his wallet - they switched to US dollars. When the US economy crashes out something similar will happen.
My dad used drilled out and used his Zimbabwe coins as washers when he built a pergola there
I hope. Maybe Euro, maybe PRC’s renminbi. We’ll see.
I just wondered, give how US dollars is world’s ‘reserve currency’ (since 1944 Bretton Woods pact), how its crash might affect the whole of global trade (it must hurt more than failure of a national currency like Zimbabwe’s since it is a reserve currency and has a special role in the world). Will we get another reserve currency or has the world economy changed so much that we will get a new way of doing business with no reserve currency or multiple competing reserve currencies? I think we are in uncharted territory so its hard to predict…
I doubt it’ll be any of the BRICS currencies, although my only knowledge of that stuff is what I get from Peter Zeihan vids on YT. His rather amusing take on that is that each nation only wants to be in it if they can run it, which obviously isn’t going to work. The Euro is already proven to work across multiple nations and 32% more people than the USA, it’s only idiots like us Brits that won’t use it “bEcAuSe SoVeReIgNtY”.
Watching the dollar crash will certainly be interesting…
Isn’t that a old Chinese curse? ‘May you live in interesting times…’ Hold on to your hat!
It would probably work out ok for the UK if they used the Euro, but it’s still useful to be able to dictate fiscal policy.
An expert in economics saw the same problem and did work out a plan in 2009. Trump is trying to jump on the bandwagon of something much bigger than him.
Give us the sources, mate.
Cool. Thanks for that info.