by Plantagenet » Wed 07 Jul 2021, 12:51:54
$this->bbcode_second_pass_quote('Tanada', '
')This is the only part of your message where we differ Plant. Here is the thing, the US Dollar is the recognized world reserve currency. This means every country involved in international trade to a large extent denominates that trade in US Dollars. When the world agreed to this system the USA promised that the dollar would remain fully convertible and that we would not abuse the trust of the rest of the world.
Technically you can still convert your dollars to any other currency more or less on demand. Since 2008 the USA has been very seriously abusing the trust of the world by significantly inflating the dollar with "Quantitative Easing" and related measures that have deliberately reduced the value of every other dollar that was already in existence from 1973-2007. Today there are quite literally trillions of new digital dollars circulating through the world economy which has placed a very real burden on all other currencies. Many of those foreign currencies also did their own versions of digitizing currency as a way of not suffering too badly from US actions, but not every country has that option and many even with the option had no desire to digitize new currency into existence with the profligate carelessness of the USA. It is not a tax per se [emphasis added] but it is a heck of a surcharge on the world economy none the less.
I can't see where we even differ on this.
I said the US doesn't tax other countries....and you said"
It is not a tax per se "
OK...so we agree the US doesn't tax other countries.
AND, I agree with you that there are a multitude of other financial entanglements between the US and other countries, including the denomination of much international trade in US dollars.
AND, you are 100% right that the US is intentionally devaluing the dollar by running huge deficits, doing multiple QE programs, and just printing way too many dollars and giving them away.
AND, when the US does this it hurts other countries who hold US debt or reserves of US currency because their value goes down as the value of the dollar goes down.
But it isn't a tax......its a side effect of the financial gyrations the US is going through to be able to manage its own huge debt. By devaluing the dollar and triggering off inflation, the US is effectively reducing the debt held by China and other foreign countries.
A more accurate way to describe this is to say that the Chinese and other foreigners who trusted the US government to maintain the value of the dollar made a bad investment......and now they are going to "take a haircut" i.e. lose money on their bad investment.
And its not just foreigners......every US retiree who spent decades paying social security taxes and now is counting on social security or on their savings to get them through their old age is also going be hurt.....because when the value of the dollar goes down and inflation rises, social security and cash and savings lose value.
Basically the US government is being a bad financial actor here.....and its going to hurt just about everyone except the few who are wealthy and who own lots of property and assets that will go up with inflation.
Wow! The US Government is printing so much money they as well be throwing hundred dollar bills out of helicopters! This is great! .......or is it?Cheers!