What If the Dollar Falls?

[Lightbringer]

The freaky thing about uncoupling is both sides are doing it.

Sadly, I do not have a crystal ball, because I could really use one... But I know what is impossible. A BRICS currency is not happening in my lifetime.

I agree. BRICS isn't a country it's a trading bloc.

The only reason this is happening right now is because of Blackrock and whether China is in BRICS or dealing with the West their currency manipulation is still going to be an issue. Get the popcorn ready because I don't see BRICS being an America beater. They may be able to effect supply to some extent but only if East Coast fuckwits continue to double down on "green" in America.

 

[Lightbringer]

I see you believe the lies of Democrats. With inflation the dollar buys much less now

Define "Inflation."

What's happening now is supply being down due to lockdowns but demand staying steady, resulting in higher prices. Supply and Demand is the issue here, not some magical money fairy that changes the value of your dollar.

 

[Lightbringer]

Problem is with Biden as president many countries don't trust us

They have trust issues going back a few years with us. I think Blackrock has a lot more to do with this than Biden, besides the guy in the White House right now isn't Biden.

 

[Walt]

I agree. BRICS isn't a country it's a trading bloc.

It seeks to become a trading block, but it is not. It is a description of a type of economy. When it starts becoming a trading block, then they can start talking about creating a governing body, and finally, long after I am dead, they could have a currency.

 

[Walt]

Many countries now trade with China currency

They do not free trade with Chinese Yuan. Russia would be the prime example of that. Russia used to sell oil to China, and get Dollars which they could use anywhere in the world. Now they get special trading Yuan that they can only spend in China for things the Chinese approve.

 

[Lightbringer]

It seeks to become a trading block, but it is not. It is a description of a type of economy. When it starts becoming a trading block, then they can start talking about creating a governing body, and finally, long after I am dead, they could have a currency.

What do you mean it's not a trading bloc? It already is and they're not the first one to ever pop up. As far as issuing currency they may choose to do something akin to the Euro but they can't do that as long as China is manipulating their currency and good luck getting China to stop doing that.

 

[goat]

They already are.

Most of US debt has been stolen from social security. Why do you think they want to privatize it? Our wars are being financed with worker FICA payroll tax. The 300 zombie companies on the S&P are sending out dividends to investors that is being stolen from worker FICA payroll tax. Empire never pays its debt.

 

[Concart]

Tell me IN YOUR OWN WORDS why this would make the dollar fail. Be specific. Explain the monetary policy that causes the dollar to lose all value.

I'll wait.

 

[Walt]

As far as issuing currency they may choose to do something akin to the Euro but they can't do that as long as China is manipulating their currency and good luck getting China to stop doing that.

The road to the Euro started with borderless movement. Then they got a governing body, followed by bureaucrats... a lot of bureaucrats. They built up a central bank, and made trade frictionless, and finally, after 54 years(1948 to 2002), they introduced the Euro. Everyone was shocked how quickly it happened.

What do you mean it's not a trading bloc? It already is and they're not the first one to ever pop up.

The BRICS are not even at the beginning of the 54 year time scale. They have no bureaucrats, nor any governing body. They have no treaties. They meet once a year, but that is about it.

Their bilateral treaties are weak. Russia and China might have the strongest trade, but we have better trade with China than Russia does. India and China are in a near state of war. Brazil and South Africa are way out there, trading more with the USA and Europe than with anyone else.

There is no shared culture. The EU was a bunch of Europeans who had all fought with and against each other for over a thousand years. Even the enemies intermixed. The German/French border is full of mixed people. What is the shared culture between Brazil and India, or South Africa and China? Even the countries that have borders have nearly unpopulated borders, no intermixing. Russia's population centers are thousands of miles from China. China and India's border is virtually uninhabitable.

Not just no shared cultures, but cultures and economies famed for their independence.

What I am saying here is it would take 50 years for the BRICS to even get on the road to take 54 years to have a shared currency, and I might be too optimistic. The lack of a shared culture makes me think it might take a thousand years even to get to the 50 years...

Assuming I am not frozen for two thousand years, and the thawed out, I will not see it in my lifetime.

 

[Walt]

Our wars are being financed with worker FICA payroll tax.

The payroll surplus is entirely going to reduce income taxes on the very rich, who pay almost no payroll taxes.

The 300 zombie companies on the S&P are sending out dividends to investors that is being stolen from worker FICA payroll tax.

There are no payroll taxes on dividends. Dividends are not payroll.

 

[Concart]

The payroll surplus is entirely going to reduce income taxes on the very rich, who pay almost no payroll taxes.



There are no payroll taxes on dividends. Dividends are not payroll.

Wow, goat doesn't even know the basics. In fact, most US stock dividends are not even subject to regular income tax rates once you've held them through a full dividend cycle, which is usually only about 3 months. They are subject to capital gains rates instead, which in most cases is less than the income tax would have been.

Now maybe he is actually advancing some other stupid conspiracy theory. Who knows. He isn't very bright, but he bleats loudly.

 

[goat]

Tell me IN YOUR OWN WORDS why this would make the dollar fail. Be specific. Explain the monetary policy that causes the dollar to lose all value.

I'll wait.

From the interwebs
The Average Lifespan of a Fiat Currency is About 35 Years.
Hyperinflation is one of the most common precursors to a fiat currency's collapse.

 

[goat]

Wow, goat doesn't even know the basics. In fact, most US stock dividends are not even subject to regular income tax rates once you've held them through a full dividend cycle, which is usually only about 3 months. They are subject to capital gains rates instead, which in most cases is less than the income tax would have been.

Now maybe he is actually advancing some other stupid conspiracy theory. Who knows. He isn't very bright, but he bleats loudly.

Reread my post and see if you can tell what you and Walt did wrong. Why are zombie companies paying dividends?

 

[Into the Night]

We are doing QE AND QT

Paradox.

we had to QE for the recent banking emergencies.
we are also QTing about 95 B a month which is hurting the Fed as its selling the shit paper it was buying at a loss, a BIG loss which just might sink them.

Paradox.

and as BRICS and its many other countries jumping on their bandwagon countries will need fewer dollars and will dump them back on us lowering their value making cash into trash.

Fiat money has no inherent value.

many many many bombs fixing to all blow up any time.

Many already blew.

The dollar has no inherent value. Inflation (quantitative easing) has been with us continuously since 1933, when it was started by FDR.
It really took off when the Bretton-Woods system failed, and the dollar was released completely from any commodity backing by Nixon as part of the fascism he was implementing at the time (wage and price controls). Since then, the dollar has fallen to just 2.5% of it's value from just before Nixon.

...and it's getting worse.

The Crash of 2007 was directly caused by the Fed. Easy money caused overspeculation (this time in the housing market). When the crows came home to roost, Obama responded with massive inflation devaluing the dollar) to try to print his way out of the financial mess caused by the Fed. The result was economic depression that lasted almost a full year into the Trump administration. Obama called it the 'new normal'.

The Crash of 2019 was directly caused by Democrats. By shutting down business as 'non-essential', and putting severe limits on business activity, all centered around a mild variant of a covid/SARS series virus, an economic depression began again. We are still in this depression. Biden is responding with devaluing the dollar (massive inflation). Biden's War on Oil has further shut down the economy, causing massive shortages and collapses of transportation of goods.

It is not going to be a debt crash. It will be a cash crash. These last two crashes are NOTHING compared to what's coming. It cannot be stopped now. The Fed and the federal government is out of options.

 

[Into the Night]

Define "Inflation."

What's happening now is supply being down due to lockdowns but demand staying steady, resulting in higher prices. Supply and Demand is the issue here, not some magical money fairy that changes the value of your dollar.

Inflation occurs when the government prints more currency than the wealth being created due to capitalism.
Inflation in the United States has been continuous since 1933. The rate has varied, but there has always been inflation.

 

[Dutch Uncle]

Paradox.

Paradox.

Fiat money has no inherent value.

Many already blew.

Psycho

Psycho

Bullshit

You're clueless, Sybil.

 

[ptif219]

Define "Inflation."

What's happening now is supply being down due to lockdowns but demand staying steady, resulting in higher prices. Supply and Demand is the issue here, not some magical money fairy that changes the value of your dollar.

Our money is with far less now

 

[ptif219]

They have trust issues going back a few years with us. I think Blackrock has a lot more to do with this than Biden, besides the guy in the White House right now isn't Biden.

Than who is he

 

[ptif219]

They do not free trade with Chinese Yuan. Russia would be the prime example of that. Russia used to sell oil to China, and get Dollars which they could use anywhere in the world. Now they get special trading Yuan that they can only spend in China for things the Chinese approve.

Many countries are starting to

 

[Lightbringer]

The road to the Euro started with borderless movement. Then they got a governing body, followed by bureaucrats... a lot of bureaucrats. They built up a central bank, and made trade frictionless, and finally, after 54 years(1948 to 2002), they introduced the Euro. Everyone was shocked how quickly it happened.



The BRICS are not even at the beginning of the 54 year time scale. They have no bureaucrats, nor any governing body. They have no treaties. They meet once a year, but that is about it.

Their bilateral treaties are weak. Russia and China might have the strongest trade, but we have better trade with China than Russia does. India and China are in a near state of war. Brazil and South Africa are way out there, trading more with the USA and Europe than with anyone else.

There is no shared culture. The EU was a bunch of Europeans who had all fought with and against each other for over a thousand years. Even the enemies intermixed. The German/French border is full of mixed people. What is the shared culture between Brazil and India, or South Africa and China? Even the countries that have borders have nearly unpopulated borders, no intermixing. Russia's population centers are thousands of miles from China. China and India's border is virtually uninhabitable.

Not just no shared cultures, but cultures and economies famed for their independence.

What I am saying here is it would take 50 years for the BRICS to even get on the road to take 54 years to have a shared currency, and I might be too optimistic. The lack of a shared culture makes me think it might take a thousand years even to get to the 50 years...

Assuming I am not frozen for two thousand years, and the thawed out, I will not see it in my lifetime.

yes, they were shocked. And why was that? Might Great Britain and the Pound Sterling have had something to do with that? Like I said, good luck getting China to stop manipulating their currency.