USA Timeline
'46-'70: Trust us, we're stable. No corruption here. We can be the trusted currency.
'71: Aaactually...
'72-'20: Hah, we can just erode EVERY OTHER NATION'S buying power, no consequences for us! PRIIIIIIIINT!
'21: Buy our debt or we all suff-.. oh, you already are.😱
'46-'70: Trust us, we're stable. No corruption here. We can be the trusted currency.
'71: Aaactually...
'72-'20: Hah, we can just erode EVERY OTHER NATION'S buying power, no consequences for us! PRIIIIIIIINT!
'21: Buy our debt or we all suff-.. oh, you already are.😱
https://twitter.com/Brad_Setser/status/1574919621269929985
Part of the underlying mentality of Bretton-Woods in 1946, when the #USD became the world's reserve #currency, was an acknowledgment of the lessons learned during the inter-war years.
One of the key areas weighted was the concept of economic security to ensure post-war peace.
One of the key areas weighted was the concept of economic security to ensure post-war peace.
A quote by Cordell Hull (U.S. Secretary of State, '33-'44) reflects his belief that the fundamental causes of the two world wars lay in economic discrimination and trade warfare:
Unhampered trade dovetailed with peace; high tariffs, trade barriers, and unfair economic...
Unhampered trade dovetailed with peace; high tariffs, trade barriers, and unfair economic...
competition, with war … if we could get a freer flow of trade…freer in the sense of fewer discriminations and obstructions…so that one country would not be deadly jealous of another and the living standards of all countries might rise, thereby eliminating...
the economic dissatisfaction that breeds war, we might have a reasonable chance of lasting peace."
That mentality has long since been lost in US politics and discourse.
Now it's "America First", all the way.
Why would the world keep funding that? At their own expense.
That mentality has long since been lost in US politics and discourse.
Now it's "America First", all the way.
Why would the world keep funding that? At their own expense.
Stein's Law becomes relevant:
"If something cannot go on forever, it will stop."
The world cannot keep subsidizing the living standard of US citizens until infinity, which is what #QEInfinity and all its brethren have essentially made us do.
FIAT = Trust.
Once it's gone...🤡
"If something cannot go on forever, it will stop."
The world cannot keep subsidizing the living standard of US citizens until infinity, which is what #QEInfinity and all its brethren have essentially made us do.
FIAT = Trust.
Once it's gone...🤡
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