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how bad do things need to get before the various govs of the world would come to that conclusion and start doing something other than can kicking?
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US is really all that matters since the dollar underpins every other capital market
US is fortunately already well on the way, NSA created Bitcoin for this very reason... the dollar Triffin Dilemma has cost the US it's national security. Bessent's plan to replace offshore dollar with stables is Act II.
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... but we're not in a natural market
In this debt-based fiat system, deflation doesn't just mean prices on things go down as production becomes more efficient... like consumer electronics
Since every dollar is debt, and every debt is someone else's asset... deflation in this system cascades until there is no money. If there was no debt, there would be no dollars. And you can't taper a ponzi.
This is why they have to print so that deflation doesn't hit stall speed and everything just falls from the sky. Actual deflation of the monetary supply would literally be an uncontrolled collapse of the entire global economic system.
It's also why what seems like endless printing doesn't end in run-away inflation, because there is a natural deflation of dollar supply every time a debt payment is made. A debt payment made is dollars destroyed. They're constantly walking a line between inflation and collapse, so obviously have to err towards inflation.
The only way out of it is to re-collateralize the currency, slowly over time, such that a thing backs it that isn't tied to real-world assets and doesn't just disappear if the music stops and doesn't require new borrowing to generate velocity. The financialization of Bitcoin is the only way to land the plane.